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Coal imports on the rise

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CARE Ratings expects higher import of coal during FY19 (2018-19) in the range of 225-240 MT v/s 208 MT in FY18.

Total coal production in India during April-August 2018 was 264 million tonne (MT) and recorded a growth of 10 per cent y-o-y. It was mainly aided by 12 per cent growth in production by Coal India (216 MT) during the first five months of FY19. The two largest state-run coal miners (CIL and SCCL) produced 240 MT of coal, accounting for 90.5 per cent of total production in the country.

Imported Coal Volume up
Coal imports grew by 13.9 per cent during the April-August 2018 period, at 95.2 MT. Share of coal from Australia, Indonesia and South Africa stood at 21.8 per cent, 41.8 per cent and 14.8 per cent respectively. Coal from USA more than doubled y-o-y for the period and constitutes 8 per cent of the total coal imported by India.

‘Coal import trend is expected to continue as power, cement and steel industry are expected to witness improvement in demand and capacity utilisation. India is the second largest producer and second largest importer of coal behind China,’ leading rating firm CARE Ratings said in an update released in October 2018.

Performance of demand driving sectors
April-August 2018 period witnessed sustained demand for steam coal from power sector with electricity generation reporting 5.3 per cent growth year-on-year (y-o-y), while other sectors like cement and steel, which use thermal coal as feedstock and coking coal as raw material, reported steady growth in production. Steel production has been growing steadily and reported 3.4 per cent growth in FY18. Cement production grew by 14.7 per cent during April-August 2018, said the report, prepared by a team led by Madan Sabnavis, Chief Economist, CARE Ratings.

Thermal power plants in the country reported capacity utilisation above 60.5 per cent after having touched 59 per cent levels in 2017-18. Thermal power plants under CEA reported a marginal drop in receipt of imported coal from 23 MT for April-Aug 2017 v/s 22.5 MT for April-August 2018. This indicates captive power users and others industries are major drivers of demand for imported coal.

Domestic coal shortage has been widely reported especially for thermal power plants. The state-run miner (CIL) on its part has been trying to address the issue of coal shortage at power plants. CIL and SCCL together reported 9 per cent growth in offtake and 10.6 per cent growth in production during April-August 2018. Besides, supply chain issues due to inadequate rail-connectivity for coal evacuation and rake availability continue to be a major factor impacting availability of coal.

Shortage of coal has impacted spot market and merchant power tariffs, hitting Rs 18 per unit levels. Between January-August 2018, coal prices have been in the range of $100-125 with prices hitting the peak average price of $125 in April 2018. Global steam coal prices have been on a steady rise after having touched a low of $50 per tonne in May 2016.

The price fluctuation has been on account of change in policies and supply bottlenecks in Indonesia, which contributes to two-third of the thermal coal imports to India. Increase in demand for thermal coal from China has been another major factor for increase in global coal prices.

Domestically, CIL was planning to introduce a new pricing methodology based on energy content of coal starting April 1, 2018. The implementation of the same has been postponed and is still under discussion. CARE Ratings expects the same to be implemented in the coming quarters of FY19.

Domestic production & imports
Coal India Limited and Singareni Collieries Company Limited are the two largest coal miners in the country. The two companies together produced 240 MT of coal which includes largely thermal coal and limited quantity of coking coal. ‘India’s largest coal producer CIL has been unable to meet its production target but we expect the same to improve in the following quarters as mining operations improve post monsoon, says CARE Ratings.

Capex achievement by CIL and NLC stood at 19 per cent of the Rs. 17,150 crore planned capex during the year. ‘In order to meet their production targets, the mining companies need to achieve their capex targets, focusing on improving production and productivity through mechanisation and automation,’ CARE Ratings adds.

India imported 95 MT of coal (coking and non-coking), recording a growth of 13.9 per cent y-o-y. India imports most of its thermal coal from Indonesia. Coking coal used in the steel industry is imported from Australia. Indonesia (39.8 MT), Australia (20.8MT), South Africa (14.2 MT) and USA (7.6 MT) are the largest source of imported coal by volume between April-August 2018.

Roughly 80-85 GW of thermal power capacity in India is partially or fully dependent on imported coal for fuel. Imported coking coal fulfils 65-70 per cent of the total coking coal demand from steel industry. Around three-fourth of India’s coking coal imports come from Australia, and the remaining from Canada, USA, Russia, Indonesia, etc.

Outlook
Total domestic coal production may remain stagnant with 2.5-3.5 per cent of growth in FY19 at 705-712 MT. Realisation is expected to increase especially on the back of shortage and implementation of the new coal pricing policy by CIL, says CARE Ratings. It expects higher import of coal during the year in the range of 225-240 MT vs 208 MT in FY18. Improved capacity utilisation in power (captive and non-captive users), cement and steel would be major drivers of coal import, the rating agency believes.

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Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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 Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

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