About Coal
Coal is a fossil fuel and is broadly known to have four types or grades based on heating content. Its categories are Anthracite, Bituminous, Sub-bituminous, and Lignite.
The price of coal is typically calculated based on coal content consisting of calorific value, humidity, volatile matter, carbon fixed, ash, sulfur and scale.
SUGOI believes that Coal being the primary source for the generation of electricity, can replace nearly all other kinds of fuel depending on the comfort of usage and demand. Coal reserves are also greater than other fossil fuel types. The tendency to use coal continues to increase, as the price of oil and other fuels are also somewhat more costly and price uncertainty is increased than coal.
India is the fifth-largest global consumer of coal. Almost 70% of our domestic electricity needs are met by coal, which continues to be a major material used for not just energy generation, but also cement and metal production. Last year, the government allowed private players into the coal business.
In February 2021, a new single-window portal was launched to ease compliance. Against the backdrop of rising private investments in the minerals sector, SUGOI highlights the economic significance and prospects for businesses in the coal sector.
Coal in India
Coal reserves are largely found in states in eastern India States like Jharkhand, Orissa and Chhattisgarh, and large swathes of central and southeastern India. The peninsular part of India has older coal deposits, with more than 90% of lignite reserves being found in Tamil Nadu.
Several other states such as Chattisgarh, Jharkhand, Andhra Pradesh, and Karnataka also have coal reserves.
Last four decades witnessed that energy consumption in India has grown by about 700%. With improvement in standard of living and technological advancements in India, the demand for energy from coal is likely to expand exponentially. Check Here to More: https://coal.nic.in/
Single-Window Clearance in Coal Sector
The government has opened a new online single-window clearance portal for the entire coal sector. This will speed up the operationalization of coal mines. Through this window, successful coal blocks bidders will be able to obtain all required clearances through a comprehensive one stop application. This includes environment and forest clearances, progress monitoring, licenses with multiple authorities, and state departments from a single portal.
The Parivesh Mechanism for forest and environment clearances will also merge into this new single-window portal
Overall there are 19 major approvals and clearances required for starting a business in the coal industry in India. These required businesses to interact with multiple departments, and administrative divisions at the state and central level for getting licenses.
The approvals include:
- Mining plan
- Mine closure plan
- Grant of mining lease
- Environment and forest clearances
- Wildlife clearance
- Clearances related to safety & labor laws
- Environment and rehabilitation project plan for affected families
- Policy for the protection of workers
This new consolidated window would also provide details of the relevant application formats and process flow for grants of approvals and clearances. With SUGOI’s expertise in getting all your licenses and regulatory approvals in order, you can focus on your business strategy and leave the entire compliance burden to us.
SUGOI’s Team of Experts will not leave any stone unturned to ensure that you get the best advice and handholding specifically to suit your business needs.
Loading of Coal in a quarry Dumper front loader
Mining Leases and Composite Licenses
Coal Industry has two types of licenses in India.
Mining leases can easily be obtained in areas where there is a non-mineral reserve. The Composite license is a prospective mining license for preliminary exploration in an unknown area by the government.
Coal blocks are allocated to the sellers by way of e-auction in a two-stage bidding process. Bidders provide an initial price offer and the government decides the reserve price (minimum price).
Since 2020 there is no State Monopoly in Coal
Lately the government opened the coal sector to private businesses. Coal India Limited, until now, was singularly involved in production of more than 80% of India’s coal. Ever since it was set up in the year 1956 and nationalization of coal in the 1970s, Coal India Limited has had a monopoly in the production of coal in India.
National Minerals Policy 2019 focuses on Privatisation
National Minerals Policy 2019 proposed to grant an “industry” status to coal mining activity. This categorization is aimed at boosting the financing of mining for the private sector and for acquisitions of mineral assets in other countries by India’s private sector companies. It would also enable small and medium-sized private companies to avail government schemes for the coal business.
Coal India Agreements with Private Businesses
Lately in February 2021, Coal India Limited also started procuring coal from domestic private power plants, to reduce the import of coal in India This presents several business possibilities to utilize indigenous coal while also reducing the cost to other consumer industries of coal. Coal can be raw material to power most other industries in electrical, heavy machinery, and processing segments. It is also in the use of making cement, steel, and other basic materials. Hence, the overall outlook for a coal-generating company is bright. There are however significant capital costs and the risk of unavailability of large reserves in the licensed area.
SUGOI with its Expert Team is your reliable Partner in all facets of Coal and Mineral Mining.
SUGOI has an enviable Capacity to Mine and Transport 52 Milliom Tonne of Coal and other Minerals per Annum.
Presently Coal Transportation is mostly carried out by Road and Rail delivered to the client’s location.
SUGOI along with its affiliates has more than Four Decades of Experience in Mining, Extraction, Transport, Washrey, Screening, Crushing, Loading, Shipping and Import-Export of Coal and other Minerals.