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“STUDY ON INDIA AS EMERGING COAL IMPORTER FOR MEETING THE LOCAL DEMAND OF POWER & CEMENT SECTOR”

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Institute Of Management Technology
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“STUDY ON INDIA AS EMERGING COAL IMPORTER FOR MEETING THE LOCAL DEMAND OF POWER & CEMENT SECTOR”

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This is to certify that ……………………………. a student of IMT – CDL Ghaziabad has completed project work on titled “STUDY ON INDIA AS EMERGING COAL IMPORTER FOR MEETING THE LOCAL DEMAND OF POWER & CEMENT SECTOR” under my guidance and supervision.

I certify that this is an original work and has not been copied from any source.

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ACKNOWLEDGEMENT

With Candor and Pleasure I take opportunity to express my sincere thanks and obligation to my esteemed guide …………………………… It is because of his able and mature guidance and co-operation without which it would not have been possible for me to complete my project.

It is my pleasant duty to thank all the staff member of the computer center who never hesitated me from time during the project.

Finally, I gratefully acknowledge the support, encouragement & patience of my family, and as always, nothing in my life would be possible without God, Thank You!

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I hereby declare that this project work titled “STUDY ON INDIA AS EMERGING COAL IMPORTER FOR MEETING THE LOCAL DEMAND OF POWER & CEMENT SECTOR” is my original work and no part of it has been submitted for any other degree purpose or published in any other from till date.

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TABLE OF CONTENTS

CHAPTER CONTENTS PAGE NO.

Certificate …………………………..………………………..3
Acknowledgement…………………….…………………..…4
Declaration…………………….……………….………….….5

1. Introduction to the study………………..……..…………………..7
2. Review of Literature…………………………..…….……..……..38
3. Objective of the Study….…………………………..….…………51
4. Research Methodology ………………………….…….…………52
5. Data Analysis and Interpretation……………………..….……….55
6. Findings and Recommendation….………………………………..67
7. Limitation and conclusion ……………….….……………………69
8. Annexure……………………………………………………..……71
 References…………………………………………..…….….71
 Questionnaire.…………………………………………….74

CHAPTER – 1

INTRODUCTION TO THE STUDY

Coal is a global industry, with coal mined commercially in over 50 countries and coal used in over 70. I Though India has the world’s fourth – largest reserves of coal, and has recently mad gas discoveries that ate notable even by global standards, inadequate fuel supplies are constraining the growth of its power sector. In the past few years, India’s fuel import have increased substantially and are likely to continue to do so if the current situation prevails, subjecting electricity prices to volatile international fuel prices an d shortages.

India now ranks third amongst the coal producing countries in the world. Being the most abundant fossil fuel in India till date, it continues to be one of the most important sources for meeting the domestic energy needs. The world currently consumes over 5522 Mt of hard coal. Coal is used by a variety of sectors – including power generation, iron and steel production, cement manufacturing and as a liquid fuel. The majority of coal is either utilized in power generation – steam coal or lignite – or iron and steel production – coking coal.
The issues are likely to come up for discussion during States’ Energy Ministers as amid the widening demand-supply deficit, the total demand by the power sector, including that from captive power plants, is expected to be 75 per cent of the total coal demand by 2017.
“If domestic supply does not match the target growth rate of 7.5 per cent per year, the import demand will be higher. The projected level of imports of around 185 MT is large keeping in mind that international trading in coal is only around 900-1,000 MT of the total consumption of over 6,000 MT world over. The world currently consumes over 4050 Mt of coal. Coal is used by a variety of sectors – including power generation, iron and steel production, cement manufacturing and as a liquid fuel. The majority of coal is either utilized in power generation – steam coal or lignite – or iron and steel production – coking coal.

“International prices of coal are also likely to remain high because of taxes which are being imposed by several coal producing countries, including Australia and Indonesia,” it added. The total demand of coal grew by about 8 per cent during the Eleventh Plan against the domestic production growth of only 4.61 per cent.
Most of the coking coal is being imported from Australia whereas for steam or non-coking coal Indonesia and South Africa is taken into consideration. Pricing of the coal in international market is not very clear as the data is not available publically. Also coal requirement (Include specification) by different industry is not very clear. Target market for the imported coal is mainly the factories located on the coastal area so that the logistic cost may be minimized.

Coal Production:

Over 4030 Mt of coal is currently produced – a 38% increase over the past 20 years. Coal production has grown fastest in Asia, while Europe has actually seen a decline in production.

The largest coal producing countries are not confined to one region – the top five producers are China, the USA, India, Australia and South Africa. Much of global coal production is used in the country in which it was produced, only around 18% of hard coal production is destined for the international coal market.

Global coal production is expected to reach 7 billion tonnes in 2030 – with China accounting for around half the increase over this period. Steam coal production is projected to have reached around 5.2 billion tonnes; coking coal 624 million tonnes; and brown coal 1.2 billion tonnes.

Coal Consumption:

Coal plays a vital role in power generation and this role is set to continue. Coal currently fuels 39% of the world’s electricity and this proportion is expected to remain at similar levels over the next 30 years.

Consumption of steam coal is projected to grow by 1.5% per year over the period 2002-2030. Lignite, also used in power generation, will grow by 1% per year. Demand for coking coal in iron and steel production is set to increase by 0.9% per year over this period.

The biggest market for coal is Asia, which currently accounts for 54% of global coal consumption – although China is responsible for a significant proportion of this. Many countries do not have natural energy resources sufficient to cover their energy needs, and therefore need to import energy to help meet their requirements. Japan, Chinese Taipei and Korea, for example, import significant quantities of steam coal for electricity generation and coking coal for steel production.

It is not just a lack of indigenous coal supplies that prompts countries to import coal but also the importance of obtaining specific types of coal.
The government may ask Coal India to import the dry fuel to meet the growing domestic demand and adopt price pooling of international and indigenous coal for supplying to power companies. In a letter to Coal India, the Coal Ministry has said, “In the interest of growth of the economy and to increase power generation, efforts are needed to make adequate coal available.”

The Power Ministry has also suggested to the Coal Ministry that there is necessity of coal imports and pooling of the price of imported and domestic coal.”In this regard, CEA ( Central Electricity Authority) needs to prepare a detailed operational plan in consultation with Coal India, Railways and Port Authorities,” the Power Ministry said.

The pool pricing mechanism of coal may be decided by Coal India. Power generation companies are battling with fuel shortage due to less and erratic supply from the country’s largest coal producer Coal India. Earlier, the Prime Minister Office had directed Coal India to enter into fuel supply agreements with power producers for committed supply of the dry fuel. The PMO is believed to have asked CIL to assure power firms of providing 65 per cent of the total coal contracted.

The Power Ministry has also suggested that “considering the constraints in ramping up production and arranging import in the first two years of the 12th plan, the penalties for supplies between 65 per cent and 80 per cent for 2012-13 and 75-80 per cent for 2013-14 may be suitably relaxed.”

The Coal Ministry has asked CIL to consider these suggestions and take appropriate decisions for revision of clauses of the Fuel Supply Agreements to be signed with power producers. The company has set a production target of 464 million tonnes for 2012-13. Coal’s demand-supply gap likely to reach 185 million tonnes (MT) by 2017 against 137 MT at present.

Coal Price Pooling Model:

This price is arrived at by taking the average price of imported and domestic coal. The model proposes that all consumers equally share the common price. Power producers have already accepted the proposed model. “According to the model, Coal India will import coal and then supply it to power generators,” the executive said. “Power plants in coastal areas will be supplied 30% of their total requirement in imported coal, while those within 300 km of the coastline will be supplied 15%. Rest of the generators will use 100% domestic coal. The resultant increase in price of coal will be distributed equally among all consumers irrespective of the coal supplied.”

Once the price pooling model is adopted, power tariffs for plants located in the east are expected to increase more in comparison to the units that are in the coastal regions of the west. Although units in the east mostly use domestic coal, they will have to pay more for coal under the price pooling mechanism.
Imported coal will increase the cost of generation for coastal power producers as well as they will use 30% of imported coal, which costs more than double of domestic coal supplied by Coal India.

Power generated by a 70:30 blend of domestic and imported coal will increase the cost of generation by 10-15 % for a unit, compared to a unit that uses 100% domestic coal. Coal India has said that it cannot meet coal demand from power producers on its own.

According to some estimates, the country will see a shortfall of about 70 million tonnes of coal this year. This shortfall has to be met through imports . But power producers could have some relief as coal prices have fallen over the past few months in the international market. The spot price for thermal coal in Indonesia has declined from $100 a tonne to $75 in the last six months. According to Coal India’s production target, it will only be able to supply 65% of the requirement for plants that have come up after December 2009. This effectively means that power units will be able to operate only at 55% plant load factor and will need imported coal to enhance capacity utilisation

World Coal Reserves

The United States Energy Information Administration (EIA) estimated the world coal reserves at 998 billion short tons. As per the findings of the World Coal Institute, coal reserves are expected to last for a period of 133 years at the current production rate. Coal reserves are available almost across the globe. The world’s largest coal reserves are in the USA, Russia, Australia, China, India and South Africa. At the end of 2006, their respective shares in global coal reserves were estimated at:
• USA – 27.1%
• Russia – 17.3%
• China – 12.6%
• India – 10.2%
• Australia – 8.6%

In 2007, coal catered to 26% of the global energy needs and almost 41% of the global electricity requirements. Coal is also used for producing heat through combustion. At the current consumption rate, the coal reserves are sufficient to generate electricity for a period of 300 years. Countries such as Poland, South Africa, Australia, China and Israel depend primarily on coal for their electricity generation. The contribution of coal in their total electricity generation is as follows:

• Poland – 93%
• South Africa – 93%
• Australia – 93%
• China – 78%
• Israel – 71%

Approximately, 17% of the total hard coal production is used by the steel industry. Nearly 70% of the global steel production depends on coal. Aggressive research is being undertaken to increase efficiency in the coal industry, with focus on new strategies for gasification and CO2 capture. These efforts are aimed primarily at reducing the carbon content and greenhouse gas emissions responsible for global warming.

ABOUT COAL:

Coal was the key energy source for the industrial revolution that has provided most of amenities to us as granted today— including electricity, materials (steel, plastics, cement and fertilizers), fast transportation, and advanced communications. Coal replaced wood combustion because of coal’s abundance, its higher volumetric energy density and the relative ease of transportation for coal. India have fourth largest proven coal reserve in the world. We have four types of coal available-lignite, sub-bituminous, bituminous, and anthracite. This type of specification depends on the amount and type of carbon it contains and amount of heat energy it can produce. In each type there have a lot of differences in their specification like moisture content, sulphur, hard grove index, carbon content, volatile material, ash content, calorific value, etc. Coal in India is used for different purposes in different industries like power industry, sugar industry, sponge iron industry, and many more. Each industry needs coal with particular specification according to their requirements. As the demand increases uses of coal increases so the environmental threats. In general term we use two types of coal:

Coking coal: bituminous coal is cooked (heated) to remove volatilecomponent such as propane, benzene, and other aromatic hydrocarbon and some sulphur gases. Coking coal is widely used in the manufacture of steel where carbon must be volatile free and ash free

Non-coking coal : Such coal which do not have caking properties recalled non-coking coal. Widely used for power generation, manufacturing process of fertilizer, cement, brick, and other heating purposes. Steam coal often referred as non-coking coal is derived from mines. India has the reserve of coal in eastern belt. The country having highest coal reserves include India, china, Australia, Indonesia and south Africa. Indian coal because of high ash and volatile material content is not preferred for industrial usage. In India the widely accepted steam coal isIndonesian and South African steam coal. Coal from Australia are of coking grade and require coking process as a result sold at high cost.

Grades & Pricing

We have seven grades of steam coal from A to G in India. Grades of coal are defined on the basis of UHV (useful heat value) or energy content and corresponding ash and moisture content. In international market unit for coal grades is GCV (Gross calorific value).UHV: It is an expression derived from ash and moisture content for non-coking coal as per government of India notification. UHV is defined by the formula

UHV kcal/kg = (8900-138*[percentage of ash content])

Formula for gross calorific value
GCV = (UHV+3645-75.4M)/1.466NCV

In GCV system of grading of non-coking coal, it is possible to determine the exact value of non-coking coal grades supplied to the consumer whereas in the existing UHV system, the heat value cannot be determine directly but computed by using an empirical formula based on ash and moisture content. The band variation in GCV grades of non-coking coal is narrower than the existing variation of heat value in UHV system. Although ministry of coal had directed Coal India Limited to fix their coal price on GCV basis but due to the opposition from power sector, which accounts for nearly 75% of total coal off take, it is not been materialized till yet. Now Coal India Limited is planning to sub grade the coal within UHV basis. According to Coal India Limited they are planning to invest approx Rs 18,000 crore in eleventh plan to increase the production of coal, which is not possible without better price realization.

WHY IMPORT:

Of total production of coal in India, power sector consumes about 75 %, which require steam coal. Steam coal is also being consumed byindustries like sugar industry, sponge iron industry, cement industry, brick and many more. There are many reasons to use imported coal: The policy of the Government of India stipulates use of only washed domestic coal by power plants located at distances of 1,000 km or more from coalmines. Although the availability of washed coal is a question mark. We must take care of transportation cost which matters a lot as in southern India the only coal field is in Talcher and transportation cost from Talcher-Paradip-western coast location amounts to multi handlingof coal at various locations apart from very high transportation andhandling cost. Compared to this, transportation cost from South Africa, Indonesia and Australia is significantly low. The quantity of coal that to be transported in nearly half (due to high calorific value), thereby reducing transportation cost. On GCV basis Indian coal price is nearly 10-12% higher than importedcoal.The above written reasons is supporting the forecasted increasingdemand of imported steam coal in India. Government is also providing a lot of flexibility in their policies for import of coal and small industries like brick, cookeries that have a dispute with CIL regarding coal distribution again support that steam coal has great potential in Indian market. I also believe that industries located at the port area will prefer to have imported steam coal because of its high efficiency and low respective price.

Market size:

Coal is a fossil fuel found in seams, which vary from a few inches to 100or more in thickness. Depending upon the amount of the ground cover or overburden, the coal can be mined by the surface method (complete removal of overburden) or the deep (underground) method. India is third largest producer of coal in the world. Rapid increase in the country’s future power generation to meet the growing demand of the domestic, industrial and an agriculture sector will be based on this fuel. In India we have majority of non-coking coal reserve which are inferior in quality because of drift origin. Steam coal (non-coking coal) having highest content about40-45%, which obviously correlated with poor calorific value. However, the advantages of Indian coals are low sulphur, lowchloride, low phosphorous, less toxic elements, high ash fusiontemperature and refractory nature of ash. Steam coal is a type of coal widely used for power generation and other industries like sponge iron,cement, brick etc. Growing economy of India needs greater source of energy for all its industry to move smoothly; Sponge iron is emerging as important route for steel making in India and also real estate sector asper investment commission is likely to grow fast which means demand of cement, brick, and energy will increase, ultimately consumption of non-coking coal increases this is to count few but there are many more factor because of which requirement of coal is supposed to increase.If we talk about the alternatives of energy then we may think of alternative technologies like, nuclear and wind. We do not have enough technology so that we can use it efficiently. India’s coal reserve under the proven, indicated and inferred category primarily up to the depth of 600meters has increased to264.54billiontons as of the beginning of the current financial year. According to thedata available from geological survey of India, Central Planning anddesigning institute, Mineral Exploration Corporation Ltd, SingareniColliery Company and director general of mines (DGM) of Maharashtraand Chhattisgarh, proven reserve were100.16billon tons, indicatedreserve were112.56billion tons and inferred reserve were32.44billiontons, of the total reserve up to300meters. However proven reservesbetween600and1,200meters were only1.67billion tons and those under the indicated and inferred category were11.66billion tons and6.05billion tons, respectively.

INDIA:

India ranks second in global hard coal reserves and is amongst the largest coal users worldwide. 70% of indigenous coal production goes on electricity generation, coal accounting for 2/3 of fuel inputs to the Indian power sector. Coal output has been rising at a steady rate of about 4% per year since 1990. The development of proven reserves has followed the growth in extraction. The coal R/P ratio has declined only marginally and still exceeds 200 years, well above the world average. About 75% of coal comes from open-cut mines. The factors that may adversely affect the security of
coal supplies in India are the following:
 Most Indian coal is of poor quality because of the rather high content of ash (30-50%) and water (4-7%) and consequently a low calorific value (13-21 MJ/kg). When such coal is directly employed in power generation, the resulting electrical efficiencies are low. Alternatively, coal can be pre-treated (washed), but this adds to the costs and results in an 8-15% energy loss.
 Although the gross R/P ratio is high, the amount of realistically exploitable reserves is uncertain. At present, most Indian coal is mined at depths of 150- 300 metres. The deposits at such depths may be sufficient for 50-60 years only. The recovery of deeper reserves may be precluded by excessively high costs.
 Most coalmines are state-owned, a fact that constrains private investment in the sector. Investment in coal supply is particularly impeded by distribution regulations and control over foreign investment. The operation of coalmines is outdated and productivity is very low compared to international standards, especially in underground mining.
 Most coal deposits are located in the northeast part of the country, while the major consumption centres are in the west and southwest (including coastal) areas of the country. Bringing coal to the major consumers, especially in unwashed form, involves expensive transport by rail over large distances (500-750 km). Transport costs may account for up to 70% of total delivery costs. For a number of reasons, including the presence of three different gauges, the condition of the Indian railways is far from perfect. Improving the railways calls for huge investment, which does not seem realistic in the foreseeable future. For these reasons, and also to improve average coal quality, many power plant operators in the west and southwest parts of India are importing increasing volumes of higher-quality steam coal.
 The power generation sector is heavily regulated and electricity prices are kept at very low levels that basically preclude investment. Power plant operators have little incentive to invest in improving coal quality, the development of logistical infrastructure or the modernisation of power plants
 Most power plants are over-aged, outdated and consequently inefficient The current 10% share held by imports in India’s total coal supply may increase in the future, driven by several factors. Electricity demand is set to expand along with the fast-growing economy. Another aspect driving electricity demand is the low electrification rate especially in rural areas, where the grid connection level is only 30%. Increasing the share of imports may be the preferred option, not only because of the poor quality of indigenous production but also because surface mining, which is suitable for the majority of indigenous coal reserves, requires the relocation of population and activities. Such relocation might pose challenges in view of the country’s high population density. On the other hand, imports may be impeded by the generally poor state of port infrastructure and the resulting port congestion and vessel delays, on top of the usual heavy delays during the monsoon season. All in all, however, considering the size of the country, even a modest increase in imports will most likely give very strong signals to the regional and world coal markets.

COAL INDIA LTD.:

India’s Energy Scenario & Coal

India is currently among the top three fastest growing economies of the world. As natural corollary India’s energy needs too are fast expanding with its increased industrialization and capacity addition in Power generation. This is where ‘Coal’ steps in. In India coal is the critical input for major infrastructure industries like Power, Steel and Cement.
• Coal is the most dominant energy source in India’s energy scenario.
• Coal meets around 52% of primary commercial energy needs in India against 29% the world over.
• Around 66% of India’s power generation is coal based.
• India is the 3rd largest coal producing country in the world after China and USA.

Coal India Limited at a glance

Coal India Limited (CIL) as an organized state owned coal mining corporate came into being in November 1975 with the government taking over private coal mines. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL today is the single largest coal producer in the world. Operating through 81 mining areas CIL is an apex body with 7 wholly owned coal producing subsidiaries and 1 mine planning and consultancy company spread over 8 provincial states of India. CIL also fully owns a mining company in Mozambique christened as ‘Coal India Africana Limitada’. CIL also manages 200 other establishments like workshops, hospitals etc. Further, it also owns 26 technical & management training institutes and 102 Vocational Training Institutes Centres. Indian Institute of Coal Management (IICM) as a state-of-the-art Management Training ‘Centre of Excellence’ – the largest Corporate Training Institute in India – operates under CIL and conducts multi disciplinary management development programmes.

CIL having fulfilled the financial and other prerequisites was granted the Maharatna recognition in April 2011. It is a privileged status conferred by Government of India to select state owned enterprises in order to empower them to expand their operations and emerge as global giants. So far, the select club has only five members out of 217 Central Public Sector Enterprises in the country.

Unmatched Strategic Relevance
• Produces around 81.1% of India’s overall coal production
• In India where approximately 52% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement.
• Commands nearly 74% of the Indian coal market
• Feeds 82 out of 86 coal based thermal power plants in India.
• Accounts for 76% of total thermal power generating capacity of the Utility sector.
• Supplies coal at prices discounted to international prices.
• Insulates Indian coal consumers against price volatility
• Makes the end user industry globally competitive

Thus, plays a key role in “India Growth Story” and making India incorporate globally competitive.

Mission of Coal India Limited

The Mission of Coal India Limited is to produce the planned quantity of coal, efficiently and economically with due regard to safety, conservation and quality.

Corporate Structure and Subsidiary Companies

Coal India is a holding company with seven wholly owned coal producing subsidiary companies and one mine planning & consultancy company. It encompasses the whole gamut of identification of coal reserves, detailed exploration followed by design and implementation and optimizing operations for coal extraction in its mines. The producing companies are:

1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal
2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand
3. Central Coalfields Limited (CCL), Ranchi, Jharkhand
4. South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh
5. Western Coalfields Limited (WCL), Nagpur, Maharashtra
6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh
7. Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa
8. Coal India Africana Limitada, Mozambique
9. The consultancy company is Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand.
North Eastern Coalfields (NEC) a small coal producing unit operating in Margherita, Assam is under direct operational control of CIL. Coal India’s major consumers are Power and Steel sectors. Others include Cement, Fertiliser, Brick Kilns, and small scale industries.

MoU Excellence

For previous three consecutive years CIL has bagged ‘Excellent’ rating in its Memorandum of Understanding (MoU) – a negotiated contract between Government and CIL Management – for performance evaluation on key physical and financial parameters.

Production and Growth
Produces over 400 Million Tonnes of Coal annually. Coal production ending Financial Year 2011 was 431.32 Million Tonnes (MTs). CIL’s dynamic production momentum is evident in the fact that in recent years, CIL leaped from 300 MTs mark achieved in 2003-04 to 400 MTs (2008-09) in a time span of 5 years. It took CIL 12 years to cross the 300 MTs production mark from that of 200 MTs achieved in 1991-92. CIL Is targeted to produce 452 MTs FY ending 2012. Two of the subsidiary companies of CIL South Eastern Coalfields Limited and Mahanadi Coalfields Limited are in the elite club of 100 MTs coal producing companies which number only a few worldwide.

Acquiring assets abroad
It is becoming increasingly evident that domestic coal demand is far outstripping the indigenous production in India. The gap between demand and supply is ever expanding. Especially so in the wake of increased capacity addition in power sector which predominantly coal dependent. In spite of best efforts, realistically CIL would not be able to satiate growing coal demand. Letters of Assurance (LoA) issued so far are already in excess of CIL’s production. Present analysis indicates that there would be a shortage of 350 MTs of coal by 2016-17. To meet this need coal import is inevitable.

CIL has taken it upon itself, in the interest of meeting the country’s energy requirement, and is foraying into foreign shores for acquisition of coal properties. For the purpose CIL has adopted a three pronged approach. Acquisition of coal properties directly on its own; through equity participation with coal mining companies abroad and through long term coal off-take contracts.

Transparency Initiatives
• Introduced e-auction for selling coal to any consumer from any location in a transparent manner.
• Introduced Integrity Pact in High Value Procurement.
• e- procurement introduced for speeding up purchase of vital inputs

Employee Welfare& CSR

• Pursues a structured CSR policy around coal mining areas to improve quality of life with community consensus and inclusive participation
• Mobile Dispensaries and wellness clinics introduced on a large scale.
• Tele-medicine facilities introduced in central hospitals.
• Provides medical services to employees, their families and local populace through 86 fully equipped hospitals having 5835 beds.
• Employs 1524 specialist Doctors.
• Runs 423 dispensaries and has 640 Ambulances.
• Provides potable water to about 2.3 million populace in remote corners of CIL’s areas of operation
• Supports 536 schools under different categories – Project Schools (55); Privately managed Schools with grant packages (284); Private Committee Managed Educational Institutes (72) and other schools where occasional grants are given (125).
• Introduced ‘Coal India Scholarships’ for 100 Below Poverty Line students plus 25 wards of land losers in government engineering and medical colleges. Scholarship covers education, hostel and mess charges
• Meets the entire cost of wards of workmen securing admission in government engineering and medical colleges.
• Committed to generate employment opportunities for people in mining areas by providing vocational training.
• The company Pursues ‘Mining with a human face’ through socially sustainable inclusive model of growth by making Project Affected People stakeholders in the decision making process for their livelihood.
• Medical facilities extended to nearby communities in fully equipped company hospitals.
• Mobile dispensaries and Tele-medicine facilities meant for employees also extended to nearby village populace.

Care for Environment
One of the inherent tendencies of coal mining is degradation of the land and environment. CIL constantly addresses the impact of mining activities across environmental and social issues. Eco-friendly mining systems have been put in place in all of its mining areas. To make environmental mitigation measures more transparent, CIL introduced state-of-the-art Satellite Surveillance to monitor land reclamation and restoration for all opencast projects.

Coal India has made afforestation over an area of around 32,000 Hectares while the total forest area degraded due to mining operation is around 12,800 Hectares, which means, for every hectare of forest land degraded, CIL has made plantation in 2.5 Hectares of land. Committed to minimize the adverse impact of coal mining on environment through well structured Environment Management Plans and sustainable development activities. As a part of ‘Clean & Green’ programme, massive plantation has been taken up by CIL wherever land is available. CIL has till date planted over 73 million trees.

A positive result of this effort towards improvement of environment through massive plantation undertaken in Singrauli Coalfields since 1985, is such that the analysis for the period 1985-1995 and 1996-2002 carried out by Conservator of Forest indicates that the annual average maximum temperature in Singrauli has decreased by 0.4oC while the annual average rainy days increased by 11.2 days and average annual rainfall has increased by 105.6 mm. CIL has started integration of Environment Management System (ISO:14001) with Quality Management System (ISO:9001) and till date have successfully achieved certification of 53 of its projects. This integration is being extended to all mines in phases.

BOARD OF DIRECTORS:

EXECUTIVE DIRECTORS

Shri S. Narsing Rao
Chairman-cum-Managing-Director

Shri A K Sinha
Finance

Shri N Kumar
Technical

Shri R Mohan Das
Personnel & Industrial Relation

Shri B.K. Saxena
Marketing

GOVERNMENT NOMINEE DIRECTORS

Ms. Zohra Chatterji
Additional Secretary,
MOC, New Delhi

Smt. Anjali Anand Srivastava
Joint Secretary &
Financial Advisor, GoI
Ministry of Coal, New Delhi

INDEPENDENT DIRECTORS

Mr. Mohd. Anis Ansari

Dr. R.N. Trivedi

Ms. Sachi Chaudhuri

Prof SK Barua

Dr. A K Rath

Smt. Sheela Bhide

Shri Kamal R Gupta

PERMANENT INVITEES

Shri DC Garg
Chairman-cum-Managing Director,WCL

Shri A K Singh
Chairman-cum-Managing Director,CMPDIL

Shri D P Pande
Additional Member (Traffic Transportation), Railway Board

PRODUCT AND SERVICES:

COKING COAL:

These coals, when heated in the absence of air, form coherent beads, free from volatiles, with strong and porous mass, called coke.
 These have coking properties
 Mainly used in steel making and metallurgical industries
 Also used for hard coke manufacturing

SEMI COKING COAL:
These coals, when heated in the absence of air, form coherent beads not strong enough to be directly fed into the blast furnace. Such coals are blended with coking coal in adequate proportion to make coke.
 These have comparatively less coking properties than coking coal
 Mainly used as blend-able coal in steel making, merchant coke manufacturing and other metallurgical industries

NLW COKING COAL :
This coal is not used in metallurgical industries. Because of higher ash content, this coal is not acceptable for washing in washeries. This coal is used for power utilities and non-core sector consumers.

NON-COKING COAL:

These are coals without coking properties.
 Mainly used as thermal grade coal for power generation
 Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing, and for other heating purposes

WASHED AND BENEFICIATED COAL:

These coals have undergone the process of coal washing or coal beneficiation, resulting in value addition of coal due to reduction in ash percentage.
 Used in manufacturing of hard coke for steel making
 Beneficiated and washed non-coking coal is used mainly for power generation
 Beneficiated non-coking coal is used by cement, sponge iron and other industrial plants

MIDDLINGS:

Middlings are by-products of the three stage coal washing / beneficiation process, as a fraction of feed raw coal.
 Used for power generation
 Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial plants, etc.

REJECTS:

Rejects are the products of coal beneficiation process after separation of cleans and / or middlings, as a fraction of feed raw coal.
 Used for Fluidized Bed Combustion (FBC) Boilers for power generation, road repairs, briquette (domestic fuel) making, land filling, etc.

CIL COKE / LTC COKE :

CIL Coke / LTC Coke is a smokeless, environment friendly product of the Dankuni Coal Complex, obtained through low temperature carbonization.
 Used in furnaces and kilns of industrial units
 Also used as domestic fuel by halwais, hotels, etc.

COAL FINES / COKE FINES :

These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively, obtained from the Dankuni Coal Complex and other coke oven plants.
 Used in industrial furnaces as well as for domestic purposes

TAR / HEAVY OIL / LIGHT OIL / SOFT PITCH :

These are products from Dankuni Coal Complex using low temperature carbonization of non-coking coal in vertical retorts.
 Used in furnaces and boilers of industrial plants as well as power houses, oil, dye, pharmaceutical industries, etc.

AGARWAL COAL CORPORATION:

History:

“Agarwal Group”- A voyage from Minion to Myriad

The history of Agarwal Group is an interesting saga of the transformation of a small venture to a Gigantic Business Group. It all began from Rohtak (Haryana) from where the founders of the group belong. Subsequently, destiny brought them to Indore the commercial capital of M.P. which soon became their show-ground. Here Mr. Purshottam Agarwal along with his brothers and with the outright support and encouragement of his beloved father Late Shri Ram Kumar Agarwal commenced Agarwal Transport Corporation in 1973-74 – a firm involved in the transportation of Indian Coal.

Gradually they got diversified into coal business and embarked on to launch Agarwal Coal Corporation. Thereafter this firm was converted into a corporate company with the name Agarwal Coal Corporation Pvt. Ltd. under the management of Mr. Vinod K. Agarwal. Today this company is one of the largest importers of coal in India.
The group has set many milestones for itself and also for the others and can be rightly termed as a trendsetter. Its voyage in the vast ocean of success still continues as it diversifies itself into various fields.

“The invincible leader in the Coal Industry” Agarwal coal corporation pvt. Ltd.-
The flagship company of the agarwal group is one of the largest importers of coal of various kinds in India.
Incorporated as back as 1973 , this company has just grown from scratch and reached the summit where presently has an estimated turnover of more than Rs. Two Thousand Five Hundred crores and it handled seven million tonnes of coal in the last financial year.
(1) The Company is dealing with blue chip Corporate and all types of end users like Cement, Steel, Power, Textiles, Bricks Chambers, Paper and all type of industries. We have small as well as large customers.
(2) We have expertise to deliver the coal to our end user at their door step.
(3) We are very much in Indian coal and we are dealing with all subsidiaries of CIL including Assam and Meghalaya coal.
(4) The Company enjoys the most credible rating of ‘A1′ assessed by CRISIL, an internationally reckoned agency for credit rating.

Accpl imports various kinds of coal from Indonesia and South Africa through almost all the ports of East and West Coast of India and also trades in all grades of Indian coal , it specializes in offering homogenous coal and CIF deliveries to its customers. We are Wholesale dealer, Agent & Stockiest of Imported and Indian Steam Coal & Slack Coal.
• Dealing in all types of imported coal.
• Dealing in Indian coal including Meghalaya coal.
• Coal is despatched by rail or road.
• Deal in Bank Guarantee business too.
• Doing transportation of coal & petcoke also.

Marketing Strategy:-

The company is having well experienced directors. Their contacts and relations with buyers as well as suppliers are excellent. In Surat, lot of textile industries are engaged which require coal for dyeing and printing units. Hence customers are easily available in Surat as well as surrounding area. Demand for coal is very high in industries engaged in Surat as well as surrounding area. Supply of coal is lesser than demand in the market hence the customers are easily available for disposal of coal in the market.

Agarwal Coal Corporation, a fairly big supplier of coal to Indian companies, expects
a further fall of 25 to 30 percent in coal prices from $40 to $50 a ton prevailing as on
November 25 in view of low demand, falling freight rates and financial crunch.
“In the last one and a half years, coal prices had gone up sharply and abnormally.
Now things are a bit unstable because of the global financial crisis. User industries are
cutting cost and the demand for their products have also gone down. In view of this, I
expect prices to fall,” the company’s Managing Director Vinod K. Agarwal told ICMW.

He said freight rates have also fallen to $6 to $8 a ton from a high of $30 to $35 a ton
very recently and this will also lead to fall in coal prices, he added. “Moreover, if rupee starts depreciating from current levels, that too will have a negative impact on prices,” Agarwal, whose company imports about 4 million tons of coal, mainly Indonesian coal, and supplies to Indian companies, said. “This year’s import will depend on market demand and financial crunch. If there is a financial crunch, we will not bring coal just to keep stock of it,” he added. The company has a long term contract with Adani Group to lift coal from the latter’s Indonesian mines.

CHAPTER – 2

REVIEW OF LITERATURE

The literature for review to be collected from secondary sources such as magazines, articles, reports, budgets, news paper etc to highlight the problems and findings of the study done by many research and business professionals.

The coal scare for the embattled power sector is only set to get worse. While the Planning Commission’s Working Group for the Twelfth Plan has pegged the requirement for coal imports at 213 million tonnes (MT) by 2017, fresh estimates made by consulting firm Mercados suggests that only about 114 MT of imported coal can actually be absorbed by the country’s power plant on account of blending constraints, specifically in the form of technical limitations at boilers in existing stations.

Worse still is the fact that even this reduced imported coal requirement may face logistical constraints due to inadequate first mile connectivity of the ports with railway network and critical congestion within the railway network itself.

For power generators, it is a Hobson’s choice. While domestic coal availability is tapering off, there are technical limitations to blending high-calorific imported coal in the typical boilers used in domestic projects. So, without adequate domestic supplies, stranded capacity is clearly on the cards.
“Any further increase in the coal import requirements for power generation would face major difficulties in reaching the generation centers, thus leading to stranded assets and sub-optimal performance,” the Mercados study has said. The study suggests — augmenting domestic coal production, developing coal storage facilities at the port premises and an efficient system of coal evacuation from port site, setting up coastal coal preparation hubs, identifying alternative railway routes to release congestion on critical sections, rationalization in routing of coal to the power plant clusters and implementing coal pooling as necessary actions to make large scale imports a reality. Progress on a slew of important and identified railway links, such as Tori–Shivpuri-Hazaribagh, Bhupdevpur–Gharghoda–Dharmajaygarh-Korba and Gopalpur–Manoharpur, if taken up on a priority basis, can help significantly in increasing coal evacuation, the study estimates.

Coal India can supply only around 65% of the power sector’s coal requirement, and the balance 15% of its promised supplies to the generation plants needs to be imported, Narsing Rao, chairman of the state-owned company, said on Monday. A Presidential directive requires Coal India to meet at least 80% of the fuel requirement of power plants, and the penalty for failing to supply any amount less was fixed at 0.01% of the shortfall.

“Roughly, we expect to supply 60-65% of the Letter of Assurance (LoA) quantities from our own sources, according to our plans. The difference between that and the 80% level, or about 15%, has to be imported by us if they want us to import,” Rao said while announcing the financial results for 2011-12.
During the current fiscal, Coal India plans to supply 347 million tonne (mt) to the power sector, up from 312 mt last year. Of this, Coal India is tied up to supply 306 mt under old LoAs, which require it to supply 90% of the commitment if it doesn’t want to pay a penalty. The rest would comprise fresh fuel supply agreements (FSAs) to be signed this fiscal, including 12 mt signed so far, said Rao.

On the 35 FSAs yet to be signed with power producers, Rao said many don’t have power purchase agreements signed with the discoms, which is a necessary condition for firming the FSA. “The prospective FSA customers should have signed the power purchase agreements by now.” Rao refused to comment on the ongoing war of words triggered by a vitriolic attack by the NTPC chief.

Energy has been universally recognized as one of the most important inputs for economic growth and human development. There is a strong two-way relationship between economic development and energy consumption. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand. In India, 80% of mining is in coal and the balance 20% is in various metals and other raw materials such as gold, copper, iron, lead, bauxite, zinc and uranium. Coal has been a major contributor in providing energy security during the past century. But it is not a renewable resource, one day it will exhaust. It is possible that this pattern may change and there could be emphasis on uranium and thorium based power plants during the later part of the 21st century in addition to the emphasis on renewable energy sources.

Coal:

India now ranks third amongst the coal producing countries in the world. Being the most abundant fossil fuel in India till date, it continues to be one of the most important sources for meeting the domestic energy needs and accounts for 55% of the country’s total energy supplies. The development of core infrastructure sectors like power, steel, and cement are dependent on coal.

Coal has been recognized as the most important source of energy for electricity generation in India. About 75% of the coal in India is consumed in the power sector. In addition, other industries like steel, cement, fertilizers, chemicals, paper and thousands of medium and small-scale industries are also dependent on coal for their process and energy requirements. In the transport sector, though direct consumption of coal by the Railways is almost negligible on account of phasing out of steam locomotives, the energy requirement for electric traction is still dependent on coal converted into electric power.

Through sustained increase in investment, production of coal increased from about 70 MT (million tonnes) in early 1970s to 382 MT in 2004/ 05. Most of the coal production in India comes from open pit mines contributing to over 81% of the total production while underground mining accounts for rest of the national output. Despite this increase in production, the existing demand exceeds the supply. India faces coal shortage of 24 MT. This shortage is likely to be met through imports mainly by steel, power, and cement sector. India exports insignificant quantity of coal to the neighbouring countries. The traditional buyers of Indian coal are Bangladesh, Bhutan, and Nepal.

Inspite of various policy initiatives to diversify the fuel mix but considering the limited reserve potentiality of petroleum & natural gas, eco-conservation restriction on hydel project and geo-political perception of nuclear power, it is becoming increasingly evident that coal will continue to occupy centre-stage of India’s energy scenario. Indian coal offers a fuel source to domestic energy market for the next century & beyond. Based on estimates, the consumption of coal is projected to rise by nearly 40 percent over the next five years and almost to double by 2020.

Power:

Access to affordable and reliable electricity is critical to a country’s growth and prosperity. India has made significant progress towards the augmentation of its power infrastructure. In absolute terms, the installed power capacity has increased from only 1713 MW (megawatts) as on 31 December 1950 to 118419 MW as on March 2005. The all India gross electricity generation, excluding that from the captive generating plants, was 5107 GWh (gigawatt-hours) in 1950 and increased to 565 102 GWh in 2003/ 04.

Energy requirement increased from 390 BkWh (billion kilowatt-hours) during 1995/ 96 to 591 BkWh (energy) by the year 2004 /05, and peak demand increased from 61 GW (gigawatts) to 88 GW over the same time period. India experienced energy shortage of 7.3% and peak shortage of 11.7% during 2003/ 04. Though, the growth in electricity consumption over the past decade has been slower than the GDP’s growth, this increase could be due to high growth of the service sector and efficient use of electricity.

Per capita electricity consumption rose from merely 15.6 kWh (kilowatt-hours) in 1950 to 592 kWh in 2003/ 04. However, it is a matter of concern that per capita consumption of electricity is among the lowest in the world. Moreover, poor quality of power supply and frequent power cuts and shortages impose a heavy burden on India’s fast-growing trade and industry.

According to Rudianto Ekawan, Michel Duchêne & Damien Goetz In 2005:

This article analyses the evolution of hard coal trade in the Asia Pacific region, known as the Pacificmarket, from the 1980s to the present years. It investigates the development of the trade pattern, the nature of contracts, the price setting, the supply demand and the future of trade.

Over the last two decades, the international trade in the Pacific market has achieved dramatic increases incoal commerce. This achievement is due to strong demand in Japan and North-east Asian countries and progressive coal export in Australia and Indonesia. It is likely that this market will continue to expand and become a more important market in replacing the Atlantic market.

In this market, historically, long-term supply contracts were usual and concluded between producer and consumer. Even recently, there are still annual contracts, but with a small number of deals. In contrast, spot transactions are now becoming more important. Previously, Japan had been influential in price setting by establishing “a benchmark price” with Australian coal suppliers. Afterward “a reference price” was becoming a trend. Nowadays, spot price indices, such as the Barlow Jonker, the Barlow Jonker ACR and globalCOAL, have become important to set the price. The Pacific market growth is not without problems. The exporter countries, particularly Australia and Indonesia, have some challenges that if they are not resolved at present, it would implicate the performance of the coal trade.

According to Clemens Haftendorn & Christian Von Hirschhausen in 2010:

Coal continues to be an important fuel in many countries’ energy mix and, despite the climate change concerns, it is likely to maintain this position for the next decades. In this paper a numerical model is developed to investigate the evolution of the international market for steam coal, the coal type used for electricity generation. The main focus is on future trade flows and investments in production and transport infrastructure until 2030. COALMOD-World is an equilibrium model, formulated in thecomplementarity format. It includes all major steam coal exporting and importing countries and represents the international trade as one globalized market. Some suppliers of coal are at the same time major consumers, such as the USA and China. Therefore, domestic markets are also included in the model to analyze their interaction with the international market. Because of the different qualities of steam coal, we include different heating values depending on the origin of the coal. At the same time we observe the mass-specific constraints on production, transport and export capacity. The time horizon of our analysis is until 2030, in 5-year steps. Production costs change endogenously over time. Moreover, endogenous investments are included based on a net present value optimization approach and the shadow prices of capacities constraints. Investments can be carried out in production, inland freight capacities (rail in most countries), and export terminals. The paper finishes with an application of the model to a base case scenario and suggestions for alternative scenarios.

According to Aziz A Lookman & Edward S Rubin in 2000:

Future energy growth in India, fueled in large part by coal, is expected to further aggravate the existing problems of particulate air pollution. This paper evaluates strategies for reducing particulate emissions from new and existing coal-fired power plants in India to comply with current and anticipated future emissions standards. The objectives are to identify methods that minimize total power generation costs, and to identify economic and political barriers to adopting these solutions. The technologies considered include conventional electrostatic precipitators, fabric filter collectors, flue gas conditioning, coal cleaning and switching to imported coal. The results suggest that the most significant savings in particulate control costs are realized through a ‘systems’ approach involving pre-combustion and post-combustion emission control methods. Nationwide savings in generation costs through improved control are estimated at approximately $0.4–0.7 billion per annum in the year 2002 (in constant 1996 dollars). Least-cost strategies are not currently being used because of capital cost subsidies, lack of domestic technology demonstration and evaluation programs, an emphasis on pollution control versus pollution prevention, and an imperfect domestic steamcoal market. Policy measures are proposed to overcome these barriers.

Accoridng to Alberto Salvo in 2010:

Consider a setting where threatened rather than actual import competition restrains a domestic oligopoly’s prices. I show that not modelling the entry threat may underestimate the true degree of market power, as incumbents’ blunted price responses to demand shocks resemble perfectly competitive behavior. Evidence from Brazilian cement markets points to an important role for imports in determining domestic cement prices, despite the near absence of imports. On assuming autarky, models with market power are rejected in favor of competition among incumbents. However, allowing a role for imports rejects the autarky assumption and precludes one from rejecting the presence of market power.

According to eng-Wen Lai & Chia-Yon Chen in 2001:

A cost minimization model for import strategy of steam coal in Taiwan is proposed. In order to meet the increasingly stringent environmental emission standards and to increase the efficiency of boilers, this paper represents an effort to provide information for Taiwan Power Company to programme steam coal with different characteristics imported from various regions. A blending problem with integer constraints on minimum usage to meet the practical operation of power station is also presented. Recommendations are made for implementation. The model can be used to plan future coal import strategy, as well as to study the effect of cost changes by making the sensitivity test. Real operational data from the Taiwan Power Company are used for testing purposes. A significant increase in the seaborne trade for coal over the past 20 years has unified formerly separate coal markets into a world market in which prices move in tandem. By virtue of its large domestic market, the USA has become the residual supplier and price setter in the world coal market. Changes in multifactor productivity have been the primary cause of the long-term fluctuations in coal prices that have been observed in the USA since the end of the Second World War and in the world coal market.

According to Samudra Vijay and Ananth Chikkatur in 2011:
China, India, and Mexico are among the top developing country emitters of CO2. The electric power sectors in China and India is dominated by coal-fired power plants, whereas fuel oil and natural gas are the key fossil fuels in Mexico. Spurred by economic development and population growth, demand for electricity in these countries is expected to continue to rise. Meeting this increased demand will have a significant impact on emissions of greenhouse gases (GHG). While available portfolio of generation and mitigation technologies may not suffice to arrest the growth of emissions, it can help reduce the rate of emissions growth. To achieve significant reductions, multiple approaches are required, such as reducing demand by adopting end-use efficiency improvement measures, accelerating the deployment of renewable and nuclear power, and adopting cleaner more efficient generation technologies. Retrofitting the existing fleet to meet strengthened environmental standards, and accelerated fleet-turnover, coupled with adoption of state-of-the-art high efficiency generation technologies, such as supercritical and ultra-supercritical boilers and advanced combined-cycle gas turbines, should play an important role in meeting the increasing demand with the least amount of GHG emissions. In parallel, significant R&D efforts will have to be undertaken to adapt off-the-shelf generation technologies to suit local needs. In the medium to long term, developed countries will need to provide financial and technical support for these countries and partner with them to develop, design, demonstrate, and deploy technologies for capturing and sequestering carbon dioxide.
According to Kym Anderson in 2003:

Both the mining and the burning of coal is polluting, so we might expect to observe taxes on coal production and consumption. Yet several countries of Western Europe subsidize coal production, and most East European countries subsidize coal consumption. The first part of this paper shows that those subsidies, which are emulated by other rich and poor countries respectively, have become enormous. Neoclassical political economy is used to examine why governments adopt such inappropriate policies when they are so wasteful of resources and damaging to the environment. Several new and offsetting political forces have been at work in Western Europe in recent years though, causing some countries to dismantle their coalproducer subsidies. The paper concludes that these pressures for reform will continue to operate in the few remaining protectionist countries; if coupled with more commercial diplomatic pressure from coal exporting countries, they could be sufficient to see the end of such protection by early next century.

According to K.R. Shanmugam, Praveen Kulshreshtha 2005:
Coal-based thermal power stations are the leaders in electricity generation in India. This study employs the stochastic frontier production function methodology for panel data to measure the technical efficiency (TE) of coal-based thermal power plants in India during 1994-1995 to 2001-2002. Efficiency varies widely across plants and regions, while the TE is time-invariant. The average TE is approximately 73%, indicating a substantial scope for increasing thermal power generation in the country, with improved application of existing technology and without employment of additional resources. The western region is technically more efficient than other regions and young plants are more efficient than their old counterparts. We hope that the findings will prove useful to development agencies and policy-makers in devising appropriate strategies to improve electricity generation in India.

India imported 2.0 million tons of coal in April 2009. From Jan 2009 -April 2009, India imported 10 million tons of coal. In April, the country imported 46% of the total quantity (0.9 million tons) from Indonesia followed by 29% from Australia, 21% from South Africa and the rest 4 %of the smaller cargoes were imported from Mozambique and New Zealand. The bulk of the imported coal in April 2009 got discharged into Calcutta, Madras and Mundra followed by Kandla In April, 69% of the total imported coal was non-coking and the balance 31% was coking coal

CHAPTER – 3

OBJECTIVES OF THE STUDY

Fixing the objective is like identifying the star. The objective decides where we want to go, what we want to achieve and what is our goal or destination.
1. To find if India really dependent on the international market for the ever increasing coal demands in cement & power sector.
2. To find the feasibility if company directly import or through the state owned coal India.
3. To find the price after import will matter the India local market.
4. To find the quality of the imported coal with respect to Indian market & its requirements.

CHAPTER – 4

RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research methodology has many dimensions. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and complains why only a particular method of technique has been used. The basic task of research is to generate accurate information for use in decision making. Research can be defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions.

RESEARCH DESIGN:- The research design used in this study was both ‘Descriptive’ and ‘exploratory’.
DATA COLLECTION METHODS:
The data will be collected using both by primary data collection methods as well as secondary sources.

PRIMARY DATA: Most of the information will be gathered through primary sources. The methods that will be used to collect primary data are:
a) Questionnaire
b) Interview

SECONDARY DATA: Secondary data that will be used are web sites and published materials related to cloud educational portal.
The secondary data will be collected through:
a) Text Books
b) Magazines
c) Journals
d) Internet

SAMPLE SIZE: 100
SAMPLING TECHNIQUE:-
The technique used for conducting the study was convenience sampling technique as sample of respondents was chosen according to convenience.
SAMPLING TECHNIQUE:- The technique used for conducting the study was Convenience Sampling Technique as sample of respondents was chosen according convenience.
REPORT WRITING AND PRESENTATION
Report Encompasses – Charts, diagrams

DATA ANALYSIS & INTERPRETATION – Classification & tabulation transforms the raw data collected through questionnaire in to useful information by organizing and compiling the bits of data contained in each questionnaire i.e., observation and responses are converted in to understandable and orderly statistics are used to organize and analyze the data.
• Simple tabulation of data using tally marks.
• Calculating the percentage of the responses.
• Formula used = (name of responses / total responses) * 100
Graphical analysis by means of pie charts bar graphs etc.

CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

Evaluation of the Study:-

A detailed analysis of the study is necessary and is to be considered in order to compare the actual theory with that practical the variants of which may form the basis for improvements. Keeping this point in view and to fulfill the evaluation variants of which may form the basis for objectives of the studies an attempt has been made to segment the various respondents on the basis of some aspects collected from them through questionnaire. There are depicted through tables and graphs.

The copy of questionnaire administered is enclosed and the sample size was 100 respondents are enclosed at the end of this project. All the calculations and numerical interpretations are for 100%

Q1. Do you satisfied with current prices of coal in Indian market?

TABLE -1

Criteria Frequency Percentage
Yes 56 56%
No 44 44%

Analysis and Interpretation:

Out of the total respondents surveyed, there is mixed responses of respondent 56% of the respondent satisfied with current prices of coal in Indian market and, 44% of respondent said no category.

Q2. Which type of coal using more in production and consumption in India?

TABLE -2

Criteria Frequency Percentage
Hard Coal 29 29%
Coking Coal 25 25%
Steam Coal 35 35%
Brown Coal 11 11%

Analysis and Interpretation:

As per shown in the above pie graph, 35% of respondent said Steam Coal, 29% of respondent said Hard Coal, , 25% of respondent Coking Coal, and 11% of respondent said Brown Coal.
Q3. Do you feel that import coal quality is good?

TABLE -3

Criteria Frequency Percentage
Yes 61 61%
No 39 39%

Analysis and Interpretation:

As per shown in the above pie graph, 61% of respondent feel that import coal quality is good and 39% of respondent said no.

Q4. Do you ready to purchase coal from coal India and you know latest price of coal Inida?

TABLE – 4

Criteria Frequency Percentage
Yes 59 59%
No 41 41%

Analysis and Interpretation:

Out of the total respondents surveyed, there is mixed responses of respondent 59% of the respondent ready to purchase coal from coal India and you know latest price of coal Inida and, 44% of respondent said no category.

Q5. Do you satisfied with current price of coal India?

TABLE – 5

Criteria Frequency Percentage
Yes 61 61%
No 39 39%

Analysis and Interpretation:

Out of the total respondents surveyed, 61% of the satisfied with current price of coal India and, 41% of respondent said no category.

.

Q6. What do you like most about the imported coal?

TABLE – 6
Criteria Frequency Percentage
Quality 39 39%
Price 25 25%
Availability 36 36%

Analysis and Interpretation:

Out of the total respondents surveyed, there is mixed responses of respondent 39% of the respondent said that they like quality most about the imported coal and, 36% of respondent said availability and 25% of respondent said price.

Q7. How much you satisfy with the prices of imported coal?
TABLE -7

Criteria Frequency Percentage
Strongly satisfied 20 20%
Satisfied 26 26%
Neutral 45 45%
Dissatisfied 6 6%
Strongly dissatisfied 3 3%

Analysis and Interpretation:

As per shown in the above pie graph, 45% of respondent said Neutral, 26% of respondent said agree, 20% of respondent strongly agree, 6% of respondent said disagree and 2% of respondent said strongly dissatisfied

Q8. Do you know how much coal does a one power plant consume?

TABLE -8

Criteria Frequency Percentage
Yes 57 57%
No 43 43%

.

Analysis and Interpretation:

From the pie graph given above, it is clear that 43% of respondent are not know how much coal does a one power plant consume and 57% of the respondent said yes.

Q9. Do you agree that Coal is the most abundant fossil fuel on the planet?

TABLE – 9
Criteria Frequency Percentage
Yes 93 93%
No 7 7%

Analysis and Interpretation:

From the pie graph shown above, it is very much clear that almost all of the respondent agree that Coal is the most abundant fossil fuel on the planet, and7% of respondent said no.

Q10. Do you agree that coal is very important for power & cement sector in India?

TABLE -10

Criteria Frequency Percentage
Yes 78 78%
No 22 22%

.

Analysis and Interpretation:

Out of total respondent surveyed, 78% of respondent are agree that coal is very important for power & cement sector in India, and 22% of respondent are not agree that coal is very important for power & cement sector in India,.

Q11. Do you agree that international market ready to fulfill Indian coal demands in power & cement sectors?

TABLE – 11

Criteria Frequency Percentage
Yes 83 83%
No 17 17%

Analysis and Interpretation:

Out of the total respondent surveyed, most of the respondents are agree that international market ready to fulfill Indian coal demands in power & cement sectors and only 17% are in category of no.

CHAPTER – 6

FINDINGS AND RECOMMENDATION

Findings:

1. As per the outcome of the study there is mixed responses of respondent 56% of the respondent satisfied with current prices of coal in Indian market and, 44% of respondent said no category.
2. 35% of respondent said Steam Coal, 29% of respondent said Hard Coal, , 25% of respondent Coking Coal, and 11% of respondent said Brown Coal, 61% of respondent feel that import coal quality is good and 39% of respondent said no.
3. As per finding that 59% of the respondent ready to purchase coal from coal India and you know latest price of coal Inida and, 44% of respondent said no category.
4. 61% of the satisfied with current price of coal India and, 41% of respondent said no category.
5. As per the outcome of the study 39% of the respondent said that they like quality most about the imported coal and, 36% of respondent said availability and 25% of respondent said price.
6. Most of respondent satisfy with the prices of imported coal.
7. 43% of respondent are not know how much coal does a one power plant consume and 57% of the respondent said yes.
8. Almost the entire respondent agrees that Coal is the most abundant fossil fuel on the planet, and 7% of respondent said no.
9. 78% of respondent are agree that coal is very important for power & cement sector in India, and 22% of respondent are not agree that coal is very important for power & cement sector in India,.
10. Most of the respondents are agree that international market ready to fulfill Indian coal demands in power & cement sectors and only 17% are in category of no.

RECOMMENDATIONS:

As the coal industry is a highly-regulated industry so we need to be very careful while entering into the market we must have good information about the industry like:
1. Pricing
2. Industry requiring coal (with full specification)
3. Competitors
4. Policies
5. Information channel

Logistic cost plays a very important role for the trading of coal so need to minimize our cost so that we can compete our competitors. Target on the industry which are on the coastal region. Emphasize on the bidder of e-auction as they can pay high cost and need coal. At initial stage we must target to small industries like Sponge Iron, Cement, Sugar, Brick etc as they are showing a great raise in their demand in near future.

CHAPTER – 7
LIMITATION AND CONCLUSION

Limitations of the Study:

The report may be beneficial to any company, but there are some limitations of the study:-

1. The size of the research may not be substantial and it is limited to area.
2. There may be lack of time on the part of respondents.
3. There may be some bias information provided by coal importer professionals.
4. As only single area will be surveyed or covered, it does not represent the overall view of each field.
5. It is very much possible that some of the respondents may give the incorrect information.

Conclusion:

For India, coal is the dominant fuel, accounting for 51.4% of 2009 primary energy demand (PED), followed by oil at 31.8%, gas at 8.9% and hydro-power with a 6.8% share of Edythe new India Power Report forecasts that the country will account for 12.17%of Asia Pacific regional power generation by 2013, with potentially growing generation shortfall that implies a rising dependence on imports In FY08, India imported approximately 50 Mn tones of coal, of which coking coal constituted 57 percent. The major source of imported coking coal is Australia while for non coking coal Indonesia is the dominant source. Small Industries like brick, sugar cannot able to get coal through e-Auction as the cost is high also imported coal is costly but if logistic cost can be minimized then this also can be our target market. Technical issues at ports, many of our ports are still lags in technology part and don’t have so much facility to handle commodities like coal. As the average waiting time at the Indian ports reaching 4.12 days and 4.89 days in FY07 for non-coking and coking coal, respectively. Most of the coking coal is being imported from Australia whereas for steam or non-coking coal Indonesia and South Africa is taken into consideration.

Pricing of the coal in international market is not very clear as the data is not available public ally. Also coal requirement (Include specification) by different industry is not very clear. Target market for the imported coal is mainly the factories located on the coastal area so that the logistic cost may be minimized. We need to be very careful while entering into the market as players like CIL is already into this field.

ANNEXURE

REFERENCES

1. http://www.financialexpress.com/old/fe/daily/20000811/fec11042.html
2. http://scclmines.com/downloads/coalprice.htm
3. http://www.economicexpert.com/a/Calorific:Value:of:Coal.htm
4. http://www.intlcoal.com/5
5. http://www.coaltrade.org/industrystan.html
6. http://coal.nic.in/welcome.html
7. http://www.indopedia.org/Indian_coal.htm
8. http://www.financialexpress.com/news/coal-ministry-scraps-plan-to-finalise-prices-on gcvbasis/198087/
9. http://www.infomine.com/
10. http://coalindia.nic.in/
11. http://www.kseboa.org/news/723-30-thermal-power-plants-running-at-critical-stock-level-of-coal.html
12. http://www.india-reports.com/RNCOS/coalindia.aspx
13. http://www.eia.doe.gov/emeu/cabs/India/pdf.pdf
14. http://commerce.nic.in/eidb/Default.asp
15. http://www.indianyellowpages.com/india/importers/c/coal.htm
16. http://www.indianindustry.com/coalcarbon/10728.html
17. http://www.indianindustry.com/coalcarbon/10728.html
18. http://www.scribd.com/doc/6577668/Indian-Power-Sector
19. Energy in Sweden 2010, Facts and figures, The Swedish Energy Agency, Table 8 Losses in nuclear power stations Table 9 Nuclear power brutto
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APPENDIX-1

Dear Respondents,

I am …………………………, a student of MBA Final Year, as a part of my curriculum; I am to take a research Project on “STUDY ON INDIA AS EMERGING COAL IMPORTER FOR MEETING THE LOCAL DEMAND OF POWER & CEMENT SECTOR ”. To enable to undertake above mentioned study, I request you to give your fair views. Your insights and perspective are important and valuable for my research.

Policy on Confidentiality: Please feel free to give your honest responses. The confidentiality of the information provided by the respondent is completely assured
Name : ……………………………….

Age : ……………………………….

Address : ……………………………….

Gender : ……………………………….

Contact No. : ……………………………….

Q1. Do you satisfied with current prices of coal in Indian market?
Yes No

Q2. Which type of coal using more in production and consumption in India?

Hard Coal
Coking Coal
Steam Coal
Brown Coal

Q3. Do you feel that import coal quality is good?

Yes No

Q4. Do you ready to purchase coal from coal India and you know latest price of coal Inida?

Yes No

Q5. Do you satisfied with current price of coal India?

Yes No

Q6. What do you like most about the imported coal?
Quality
Price
Availability

Q7. How much you satisfy with the prices of imported coal?
Strongly satisfied
Satisfied
Neutral
Dissatisfied
Strongly dissatisfied

Q8. Do you know how much coal does a one power plant consume?

Yes No

Q9. Do you agree that Coal is the most abundant fossil fuel on the planet?

Yes No

Q10. Do you agree that coal is very important for power & cement sector in India?

Yes No

Q11. Do you agree that international market ready to fulfill Indian coal demands in power & cement sectors?

Yes No

***********

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