Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
Rising coal production from captive and commercial mines, estimated to reach 140 million tonnes (MT) in FY24, would assist in reducing the critical commodity's price, according to Coal Secretary Amrit Lal Meena.
"Increasing contributions from both captive and commercial mines will improve coal availability to users, decreasing the pressure on Coal India's (CIL) coal auctions. As a result, buyers will pay less for coal, and the premium at auction will decrease. Thus, all coal-based industries' production costs will be lowered," Coal Secretary stated.
The total production and shipment from captive and commercial coal mines in April-February of FY24 was 126.80 MT. Output increased from 86 MT in FY22 to 123 MT in FY23. The average daily production in February 2024 was 5.14 lakh tonnes, which is a first.
The Coal Secretary said that the rising production of dry fuel, which accounts for more than 70% of India’s power generation, is also reflected in the National Coal Index (NCI).
NCI is a price index combining prices from all sales channels — notified, auction, and import prices. It considers the prices of coking and non-coking coal of various grades transacted in the regulated (power and fertiliser) and non-regulated sectors. The index witnessed a fall of 4.75% in December 2023 at 155.44 points from 163.19 points a year ago, which indicates sufficient availability of coal. In January 2024, the decline was steeper at 9.27%, as the NCI stood at 154.53 points against 170.32 in January 2023. The NCI peaked in May 2022 at 246.97 points but declined in the following months, indicating more availability.
Meena said ongoing efforts under the PM Gati Shakti National Master Plan (NMP) are producing results. She added that the pace of production from commercial mines will pick up over the next two years. Meena projected that the share of captive and commercial mines will gradually increase year-by-year while the share of government PSUs will reduce.
On the auctions, he said, “After seven rounds of commercial coal mine auctions, a total of 91 mines have been offered. The eighth and ninth round of auctions are underway. In March, we will complete the financial bidding and allot mines to successful bidders. It is expected that another 16 mines will go, taking the total to 105-107. The peak rated capacity (PRC) of these mines will be more than 220 million tonnes per annum (MTPA).”
At present, eight commercial coal mines have commenced production. They are expected to produce over 15 MT in FY24 and around 23 MT in FY25.
Also Read : PM Modi inaugurates Boeing's mega tech centre, envisions India designing future aircraft Govt of Maharashtra partners with M1xchange to empower MSMEs through TReDS
The Union Cabinet has approved a significant ₹8,500 cr incentive scheme for coal gasification projec...
Announcement 24-Jan-2024
According to company sources, Coal India Ltd. is expected to achieve an output of over 773.7 million...
Mid Corporate 01-Apr-2024
Moradabad: The announcement of tariffs on aluminium and steel by the US President has created anxiet...
Business 28-Feb-2025
The renewable energy sector in India is facing issues with budgeting and rising expenses due to the...
Renewables 10-Jun-2024
JSW Infrastructure, India's Number 2 private port operator by market capitalisation, reported a near...
Large Corporate 03-May-2024
Domestic finished steel consumption is expected to expand by 13% to 136 million tonnes (MT) in 2023-...
Ferrous 18-Apr-2024