Cement, Energy and Environment

The report also analyzed the technology market for the coal-fired power sector and found that pulverized coal systems accounted for over half of the capacity installed in 2013. Meanwhile, alternative cyclone furnace systems will grow at a CAGR of 2.6% to 2020 to reach 614.6 GW of installed capacity. Courlesy: FIMI News Bulletin, 15.06.2014, Pg. No. 9- 10 IMPORTED COAL GETS A LOT CHEAPER A steep fall in imported coal prices has brought cheer to India's portbased thermal plants. Industry executives say imported coal is now cheaper by at least Rs 200 a tonne at ports against similar grade fuel produced by state– run Coal Ind ia. However, power plants located far away from ports are not likely to benefit much , considering the freight costs they will have to bear for transportation of ;mported coal. "This is for the first time that the price difference between imported and CIL's coal has touched Rs 200, making it very competitive to import for power plants that are not too far off from ports ," Gautam Kumar, director at Asian Minerals, told ET. "If China continues to buy less, prices are expected to remain at lower levels ." Demand for coal has slumped in the international market with both Ch ina and the US cutting their imports. While demand from China has fallen, as it has high stocks at ports and utilities do not have a purchase plan for coming months, the US is reducing its dependence on the fuel as it is shifting focus to shale gas. Indonesia, one of the word's largest coal exporters , has begun cutting production to align supply with demand. "Coal with 5000 kilo calorie of energy content has been rul ing around $55.5 per tonne, whi le that of 4,200 kilo calorie is around $37.5 per tonne. Nevertheless, according to reports, Indonesian miners are cutt ing output to combat low prices," a coal trader said. CIL, meanwhi le, is planning to raise the price of its produce and, if that happens, the price difference between imported and locally-produced coal will rise further. This will provide an added incentive to port-based thermal plants to import more coal. Courtesy: The Economic Times, Kolkata. 16.06.2014.Pg. No.9 RS 4,200 CRORE GANGA WATERWAY PLAN TO SPEED UP COAL TRANSPORTATION The beleaguered power sector will be among the first beneficiaries of the government's proposal to develop the Ganga waterway. Experts say the Rs 4,200-crore plan will help speed up transportation of coal to power plants in the north and east of the country. Coal accounts for about 55per cent of India's energy needs. Despite the country's high dependency on the fuel, problem with logistics means coal from pit heads generally lies idle for months before it can be moved to railway sidings for transportation to power plants. On Thursday, Finance Minister Arun Jaitley announced the government's intent to develop the river route between Allahabad in Uttar Pradesh and Haldia in West Bengal over the next six years. The National Waterway project will entail build ing the river channel and river ports along the banks of the Ganga . "It wi ll be used largely for transportation of coal to power plants ," said Manish Saigal, managing director at advisory firm Alvarez & Marsal. "Companies can also use the route to transport coal coming from Indonesia. This coal usually gets unloaded at Parad ip, Haldia and Dhamra on the east coast." Some of India's largest coal reserves are in the north and east of the country. Almost 50 per cent of the fuel is transported by rai l, 20 percent by road and about 12 percent through the merry go round (MGR) system, according to lnfrasight Consulting. "The transportation of coal is marred with inherent problems, like reserves being situated in difficult terrains, which are vast ly scattered," the consultancy wrote in a report, adding that "bulk of the coal lies in the belt of eastern corridor under the forest belt and tribal areas". 23