Economy & Market

Coal import witnesses growth

Published

7 years ago

May 31, 2018

admin

Coal imports grew by 8.1 per cent in FY18 on the back of sustained demand from steel sector for coking coal and steady demand from the power and cement industry.
Coal production in India touched 688.4 MT in FY18, clocking a 2.5 per cent increase over last year’s production. The two large state-run coal miners, Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) together accounted for 91.6 per cent of the total coal produced in the country during FY18.
Coal imports grew by 8.1 per cent in FY18 on the back of sustained demand from steel sector for coking coal and steady demand from the power and cement industry. Total coal import in FY18 stood at 213 MT, against 195 MT in FY17. Australia, Indonesia and South Africa are the three largest exporters of coal to India and contribute to 75-80 per cent of the country’s total coal import.
Coal imports were widely anticipated to fall during FY18. The government has been pushing steam coal consumers especially power producers to replace imported coal with domestic coal. But inadequate coal transportation infrastructure especially availability of rakes has been hampering supply to power producers. Coal import trend is expected to continue as power, cement and steel industry are expected to witness improvement in demand and capacity utilisation.Global trend
China continues to be the largest coal producer globally and accounts for 45 per cent of the world coal production. The USA, India, Australia and Indonesia together account for 33 per cent of the world coal production. Global coal production stood at 7,270 MT. Globally, coal production has been declining and 2016 marked the largest single-year global production volume decline as per data available from International Energy Agency (IEA).
Developed economies namely USA, China and Europe continued to report fall in demand for coal and have reported growth in gas-based and renewable energy generation. India remains among the top-three coal producers in the world and as per data for 2016 by IEA, overtook USA. USA as mentioned above reported fall in production, whereas India has been reporting growth in production to fuel its large thermal power capacity which contributes to 72 per cent of the country’s electricity generation.
Australia accounts for 18-20 per cent of the world coking coal production. India, China and Japan are the largest importers of coking coal from Australia. China is the largest coking coal consumer and accounts for 60-62 per cent of the world consumption. India which is the second largest coking coal consumer accounts for 10-11 per cent of the world consumption.
Australia and Indonesia continued to be the largest coal exporting nations in the world and accounted for 57 per cent of the total coal export volume. The top-4 destinations of exported coal were China, India, Japan and South Korea and accounted for 58.5 per cent of the total global coal import volume.India: Performance of demand driving sectors for coal
The year witnessed sustained demand for steam coal from power sector. Other sectors like cement and steel which use thermal coal as feedstock and coking coal as raw material reported steady growth in production. Thermal power plants in the country reported capacity utilisation above 60 per cent after having touched 59 per cent levels in 2016-17.
The power sector reported shortage in supply of coal from state-run coal miner’s, which has been affecting the operational performance of thermal power plants. The shortage can be roughly equated to the shortfall in CILs coal production target, i.e., 33 MT. Inadequate rail-connectivity and rake availability have been some of the major hurdles which led to shortage of coal during the year at thermal power plants. State-run miner CIL has is expected to invest significantly into developing railway infrastructure over the next 12-18 months which is expected to improve the connectivity of pitheads.
In the absence of unavailability of cheap domestic coal, thermal power plants, in and around coastal regions and ports opt for imported coal.
Steel production has been growing steadily and reported 5.6 per cent growth in FY18. Cement production grew by 6.3 per cent in FY18. During the last 12-months, average global coal prices have been in the range of $ 70-106 with prices hitting the peak in January 2018 after having bottomed out at $72.5 per tonne in May 2017.
Global steam coal prices have been on a steady rise after having touched a low of $ 50 per tonne in May 2016, on the back low demand from China. Coal India, countries largest coal producer hiked coal prices by 10 per cent in January 2018. The average coal price depending upon the Gross Calorific Value (GCV) of coal ranged between Rs 530-3,290 per tonne.
Domestic coal shortage has been widely reported especially for thermal power plants. The state-run miners (CIL and SCCL) on their part have been trying to address the issue of coal shortage at power plants. During the year, 580.3 MT of coal has been made available to the consumers, 7 per cent increase over previous year. CIL has introduced new pricing methodology based on energy content of coal starting April 1, 2018. The same would not have a significant impact on the prices of domestic coal. The price of each tonne of coal will be based on its total energy content.Coal import
Coal accounted for 4.9 per cent of total imported goods by value (approximately $22 billion) and is the fourth most imported commodity behind petroleum, precious stones and gold.Steam/thermal coal import
India imported around 155-158 MT of steam or steam coal used as fuel for thermal power plants. Roughly 80-85 GW of thermal power capacity in India is partially or fully dependent on imported coal to fuel these power plants. Additional 6-7 MT of other types of bituminous and coke was imported for other industries. Indonesia (81.5 MT), South Africa (33.5 MT), USA (6 MT), Mozambique (3.1 MT) and Australia (1.7MT) are the largest exporters of Steam coal to India between April-Feb 2018.Coking/metallurgical coal
Coking coal, also known as metallurgical coal, is used to create coke, one of the key inputs for the production of steel. China, India, South Korea, Japan and European Nations are major global demand centres of coking coal for manufacturing steel.
India imported roughly 46.5 MT (estimates) of coking coal in FY18, 8.1 per cent growth over import volumes in FY17. India also has coking coal reserves but the quality of domestic coking coal is inferior to imported coking coal. Imported coking coal fulfils 65-70 per cent of the total coking coal demand from steel industry.
Around 3/4th of India’s coking coal imports come from Australia, and the remaining from Canada, USA, Russia, Indonesia etc.Performance of CIL and SCCL
Coal India and Singareni Collieries Company are the two largest coal miners in the country. The two companies together produced 629.4 MT of coal which includes both steam and coking coal. India’s largest coal producer CIL has been unable to meet its annual target set by Government. CIL meeting its coal mining target would easily help cut coal imports by up to 10-15 per cent depending upon the quality of coal produced.CARE Ratings view
Total coal production may stagnate during the year given no visible improvement in availability of rakes or increase in evacuation infrastructure for mined coal. We expect the total domestic coal production to grow in the range of 2.5-3.5 per cent (705-712) MT for FY19. There is an immediate requirement to auction private coal blocks of coking and steam coal for 50 MT per annum, in order to control import of steam and coking coal. Total import of coal including coking coal and steam coal could touch 235-245 MT if the government approves an order to ban use of pet coke which is a feedstock in cement industry. Additional 35-40 MT of imported steam coal would be required to compensate for the pet
coke ban.Source: CARE Ratings

Concrete

The RAHSTA to Innovation

Published

4 weeks ago

November 23, 2024

Roshna

As part of the 10th India Construction Festival, the RAHSTA Awards recognised outstanding contributions to the road construction industry.

On October 10, 2024, the RAHSTA Awards were held at the Jio Convention Centre in Mumbai, forming a significant part of the 10th India Construction Festival. This esteemed event serves as a pivotal platform for recognising and honouring outstanding contributions in the road construction industry, particularly those that prioritise sustainability, innovation and excellence.
RAHSTA, an acronym for ‘Roads and Highways Sustainable Technologies & Advancement’, has become synonymous with the promotion of advancements in road construction equipment and technologies. Organised by the FIRST Construction Council, the awards seek to highlight the importance of sustainable practices in infrastructure development and celebrate those organisations that lead the way in this critical area.
At the event, Pratap Padode, Founder, FIRST Construction Council, underscored the importance of skilling the workforce in the construction sector. He pointed out that construction is India’s second-largest employer, with the potential to reach 100 million jobs by 2030. However, he emphasised that a significant portion of this workforce remains unskilled, with 80 per cent of the 70 million workers lacking adequate training.
“To bridge this skill gap, we must incorporate practical orientation in engineering and management courses,” Padode urged. He highlighted the Indian Government’s initiative to onboard 1 crore interns through CSR funding over five years, encouraging construction companies to participate actively
in this programme. By doing so, he said, the industry could not only enhance skill development but also position itself for future growth and sustainability.

The RAHSTA Awards recognised seven outstanding contributions to the road construction sector, celebrating innovations that drive sustainability and efficiency:

Award for Highest Standards of Excellence in Road Engineering & Construction: Patel Infrastructure
Award for Excellence in Bridge Engineering: L&T Construction, DIAL Phase 3A Project
Best Road Financier Award: HDFC Bank
Award for Best Use of Waste Material Recycling in Road Construction: Tata Steel
Best Digital Technology Award in Road Building: Cube Highways and Transport Assets Advisors
Award for Excellence in Project Management: Haryana Rural Road Infrastructure Development Agency
Innovation Award in Project Execution:
CC Precast Solutions
Indeed, the RAHSTA Awards 2024 were more than just a ceremony; they represented a vital call to action for the road construction sector in India. By highlighting the importance of sustainability and technological advancement, the awards inspired industry stakeholders to strive for excellence
and innovation.
As the event concluded, it left attendees with a renewed sense of purpose and a collective vision for a more sustainable and efficient future in infrastructure development. The RAHSTA Awards stand as a testament to the possibilities that lie ahead when industry leaders come together to embrace change and foster growth.

Concrete

Equipment India Awards 2024!

Published

4 weeks ago

November 23, 2024

Roshna

The titans of the construction equipment industry were honoured at the 12th BKT Equipment India Awards 2024.

On October 10, 2024, Mumbai played host to the much-anticipated 12th BKT Equipment India Awards 2024, an event that recognised and celebrated the outstanding achievements within the construction equipment sector. The grand ceremony took place at Jio Convention Centre and was among the highlights of the India Construction Festival, which gathered industry leaders, manufacturers and financiers from across the nation to honour innovation and excellence in this vital sector.
The inaugural addresses set a reflective tone for the evening, emphasising the importance of collaboration and information sharing within the industry. In his opening speech, Pratap Padode, Founder, First Construction Council, remarked, “At Equipment India, we have always tried to enhance the standard of the industry. During this 17th year of our existence, we still find that companies are trying to hide behind a veil as far as the disclosure of factual data is concerned.” His emphasis on transparency resonated with the audience, highlighting the critical need for the construction equipment sector to adopt best practices for data sharing, akin to those seen in the automobile industry.
For his part, Vipin Sondhi, Chairman, RAHSTA Committee, and former MD and CEO, JCB India and Ashok Leyland, also shared optimistic insights, stating, “Today, we celebrate not just the figures but the remarkable individuals behind them – the innovators, manufacturers and teams that push the boundaries of what’s possible.” He highlighted the impressive growth of equipment sales, which saw a 26 per cent increase during FY2023-24, reflecting strong market recovery and renewed confidence.
The 12th BKT Equipment India Awards not only celebrated the achievements of key players in the construction equipment sector but also served as a reminder of the collective effort required to drive the industry forward. The event reaffirmed its commitment to supporting the industry’s ongoing evolution, ensuring that India remains a significant player in the global construction equipment market. With the industry poised to grow at a CAGR of 12 per cent, reaching $25 billion by the end of the decade, the evening left attendees inspired and motivated to continue pushing boundaries in their respective fields.
A significant highlight of the evening was the presentation of the Equipment India Person of the Year 2024 award to Jaideep Shekhar, Managing Director, Terex India. Under his astute leadership, the company has achieved remarkable growth, marked by innovation and a commitment to excellence. The jury praised his strategic vision, which has not only propelled the company’s success but also contributed positively to the broader industry landscape.
Receiving the award, Shekhar expressed heartfelt gratitude, stating, “I’m deeply grateful to the jury and Equipment India for this remarkable honour. This award reflects not only my contributions but also the dedication and hard work of my team. I have been associated with the industry for more than 25 years and this award motivates me to keep pushing boundaries and to lead the growth
with integrity.”
The award presentation was made all the more special by the presence of previous winners of the Equipment India Persons of the Year, including Vipin Sondhi, former MD and CEO, JCB India (Equipment India Person of the Year 2013); Sandeep Singh, Managing Director, Tata Hitachi Construction Machinery (Equipment India Person of the Year 2015); and Dimitrov Krishnan, Managing Director, Volvo Construction Equipment India (Equipment India Person of the Year 2013).
The event also witnessed the recognition of numerous companies across various categories, showcasing the best of the best in the construction equipment sector. Indeed, as the industry gears up for future challenges, the awards stood as a testament to resilience, creativity and the unwavering spirit of collaboration. Together, the participants are set to build a brighter tomorrow for the construction equipment industry in India, fostering innovation and sustainable practices that will serve the nation for years to come.

Winners of the 12th BKT Equipment India Awards

Equipment India Person of the Year 2024:Jaideep Shekhar, Managing Director, Terex IndiaGreen Factory of the Year: Tata Hitachi Construction Machinery
Best After-Sales Service Provider: Tata Hitachi Construction Machinery
Concrete Pumps: Schwing Stetter India
Truck Cranes: Sany Heavy Industry India
Asphalt Plants: Ammann India
Asphalt Finishers: Ammann India
Batching Plants: Schwing Stetter India
Crawler Cranes: Sany Heavy Industry India
Piling Rigs: Sany Heavy Industry India
Rigid Dump Trucks: Caterpillar India
Motor Graders: Caterpillar India
Mini Excavators: Tata Hitachi Construction Machinery
Crawler Excavators: Tata Hitachi Construction Machinery
Mobile Cranes: Action Construction Equipment
Crawler Dozers: BEML
Skid-Steer Loaders: Doosan Bobcat India
Wheel Loaders: LiuGong India
Self-Loading Concrete Mixers: AJAX Engineering
Tower Cranes: Action Construction Equipment
Compaction Equipment: Case Construction
Mobile Cranes: Action Construction Equipment

“I congratulate ASAPP Info Global on the outstanding success of the conference and award shows! It was a privilege to be part of such an insightful session with industry leaders.”
– Sanjay Koul, President- India and South East Asia and Managing Director, Timken India

Concrete

22nd CONSTRUCTION WORLD Global Awards Excellence Revisited!

Published

4 weeks ago

November 23, 2024

Roshna

At the 22nd CONSTRUCTION WORLD Global Awards, over 50 awards in 21categories were presented to industry stalwarts.

The 22nd CONSTRUCTION WORLD Global Awards, was held on October 9 and 10, 2024, at the Jio World Convention Centre, Mumbai, and hosted by infrastructure think-tank FIRST Construction Council in partnership with CONSTRUCTION WORLD (CW) and Equipment India (EI) magazines. Incidentally, the spectacular RAHSTA Expo was India’s first indoor trade fair for construction equipment technology.

Benchmarked to global standards
At the inaugural session, Sanjay Bhatia, Upa-Lokayukta, Government of Maharashtra, along with Vipin Sondhi, Chairman, RAHSTA Expo Committee, and Pratap Padode, Founder, FIRST Construction Council, inaugurated the RAHSTA Expo. Expressing delight at the huge display of construction technology, Bhatia said, “The expo has put the construction industry on an international standard. India is experiencing nation-building at a robust pace and I am truly impressed with the work now being done by our youth with their startups, many of whom are showcasing their innovation here.”

Special bytes
At the 22nd CONSTRUCTION WORLD Global Awards, over 50 awards in 21 categories were presented to over 50 companies.
“I am thrilled to accept this award on behalf of Century Ply,” said Anup Mangaserri, Chief Executive Officer – Laminates, Century Plyboards India.
“It’s an honour to be recognised and I extend my heartfelt thanks.”
“Tata Consulting Engineers has made significant strides in nation-building projects in India and
high-impact engineering efforts abroad,” said BR Parthasarathy, Senior Vice President and Head – Infrastructure Cluster, Tata Consulting Engineers (TCE), sharing his pride in receiving the ENR Award. “This recognition underscores our global capabilities and we are honoured to be part of this journey.”
For his part, Sarat Chandak, CEO, H&R Johnson, said, “We are truly delighted to receive this award as the most admired brand in the construction world. This recognition reflects the dedication and hard work of the brand over its six-year journey in India. Thank you for acknowledging our efforts.”
And Sandeep Desai, Executive Director, and Ananta Rayaprolu, Director, Afcons Infrastructure, noted, “This is a proud moment for the entire Afcons team to have this particular trophy and prestigious award. Afcons has always been at the forefront of extreme engineering, and we are really happy for this acknowledgment, which motivates us to continue pushing the boundaries of innovation.”
Joining the chorus of gratitude, Manish Kumar, Executive Vice President, ITD Cementation, stated, “It is an incredible honour to receive this award and to be here for this event, which is very well organised. Being recognised among the best of our peers in the industry is truly a privilege. I accept this on behalf of my team and company and we are deeply grateful for this recognition.”
Many winners addressed the efforts that led to their recognition. “We are extremely proud and thankful that our founder has received the CW Person of the Year (Private Sector) award,” said Hardik Agrawal, Director, Dineshchandra Agrawal (DRAIPL). “This recognition reflects the relentless efforts of the entire Dinesh Chandra Group. We are deeply motivated by this honour and we thank the CONSTRUCTION WORLD Global Awards for this acknowledgment.” And Lalit Chhabra, Managing Director, PINI India, added, “It is a tremendous honour to receive this award. We are delighted that our global efforts have been recognised. This is a testament to what we have done in the past and our hard work. We look forward to improving our ranking in the years to come.”
Sharing his excitement, Ryoya Watanabe,
Senior Manager – BD & Marketing Division, Nippon Koei India, said, “We are headquartered in Tokyo and I am excited and honoured to accept this prestigious award. Thank you very much for this recognition.”
Meanwhile, Saji Samuel, Executive Vice President (Long Products), JSW Steel, brought the conversation around to India’s bright future. “I feel elated with this award because this is going to propel India into a five trillion-dollar economy as quickly as possible,” he remarked. “I wish CONSTRUCTION WORLD all the very best and hope many new companies will participate in this event going forward. I feel very proud to hold this trophy in my hand on behalf of my company.”
This collection of leaders from different sectors was a showcase of the diversity and excellence celebrated by these prestigious awards, marking significant milestones in their respective industries.
As Rajiv Poddar, Managing Director, BKT, observed, “India Construction Festival 2024 has once again proven to be an invaluable platform for the construction equipment industry. The convergence of innovative ideas and collaborative efforts showcased here reflects our collective commitment to growth and excellence. Congratulations to ASAPP Info Global for orchestrating such a successful event and to all the award winners – your achievements are a testament to the bright future of our industry.”

An event to remember Another highlight of the event was the launch of Pratap Padode’s book, Tarmac to Towers – India’s Infrastructure Story.
Indeed, in keeping with tradition, the annual CWGA Awards ceremony was a memorable celebration of architectural achievements and a platform for dialogue on critical issues affecting the construction industry.