The state-owned Coal India Limited (CIL) plans to diversify in 2021, enter the non-coal mining sector, and make major investments in clean technology, as the coronavirus pandemic affects economic activity for most of 2020 , The demand for dry fuel remains sluggish.
Despite the difficulties, including the decline in coal demand, the government opened up the country’s mining industry to private companies by auctioning 19 blocks. Analysts said that compared with 2019, global coal demand in 2020 is expected to drop by about 5%, and various industry challenges are expected to persist in 2021.
"In 2021, we will work hard to diversify the Coal of India Company Limited (CIL) into non-coal-related fields. The Coal India Company Limited will make major investments in areas other than coal mining in order to be fully prepared to realize the development from fossil fuels. Transformation."
Coal Minister Anil Kumar Jain said: “Therefore, Coal of India (CIL) will invest in renewable energy, enter the field of aluminum and clean coal technology, and will do a lot of things.”
Jain said that in the coming year, Coal of India Ltd. may also continue to advance its agenda to achieve a production target of 1 billion tons from 2023 to 2024. Coal of India Ltd. may also "continue to advance the 1 billion ton agenda. It is getting approval. It is stepping up its efforts to continue to increase production, which was 603 million tons last year. Its goal is getting bigger and bigger. By 2023 to 2024. By the year, it will be able to achieve 1 billion tons (production target)."
Jain pointed out that Coal India has formulated an investment plan of 2.5 trillion rupees. He said that a large part of the proposed expenditure will be used for clean coal technology and diversification. "The rest (investment will be used) to increase coal production."
Commercial coal auction
Around 2020, “the auction of commercial coal is the number one achievement [of the coal industry]. We have amended the law to alleviate several things.”
The auction of commercial coal mining blocks has witnessed "fierce competition". The 19 auctioned blocks will generate a total income of about 70 billion rupees each year. Once they are put into operation, they will create more than 69,000 jobs.
As many as 38 coal mines were auctioned, which also marked the opening of the country's coal industry to private companies. The tender also attracted the participation of participants in industries such as pharmaceuticals, real estate and infrastructure.
A total of 42 companies participated in the auction, of which 40 were private companies. 76 bids were received from 23 mines. Some successful large conglomerates include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power.
The secretary said that the government has facilitated the mining plan and made it environmentally friendly to promote business convenience. The Ministry of Coal has taken a number of measures to review the old laws to improve efficiency, simplify trade, and open up the coal sector to increase domestic coal production and reduce imports.
Coal demand plummets in 2020
Due to the sluggish economic activities following the coronavirus pandemic, coal demand has plummeted in 2020, and the coal industry is also facing severe weather.
An official from the Ministry of Coal, who asked not to be named, said that almost all parts of the country have been hit by the pandemic, as is the coal industry. The official added that coal sales have fallen because of the decline in the power industry as a major consumer of dry fuel during the lockdown.
Pramod Agarwal, chairman of Coal India, said that the company plans to produce 65-660 million tons of coal in this fiscal year, and by November, the output will reach 334 million tons. Regarding coal demand in 2021, Agarwal said that it will depend on many factors, including economic development.
It is estimated that between 2018 and 2020, global coal consumption has fallen by 7%, or more than 500 million tons. Due to the decline in global coal power generation, including India, global coal demand fell 1.8% after two years of growth.
Analysts believe that demand will increase slightly in 2021, and prices are also expected to rise.
Moody's Investor Services said in an October report that by 2021, India and other Asian countries (including China) will become major consumers of coal, and coal demand will recover.
By 2021, coal use is expected to increase by 3.8%. According to a report by the International Energy Agency, in the medium term (to 2025), as electricity demand increases and infrastructure projects require more steel and cement, India is one of the countries with the greatest potential for growth in coal consumption.Editor/Huang Lijun
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