Nationalization of Coal Mines in India

We are sure that you are reading our blogs regularly and are well updated with the information that we bring to you. To some extent, we are also aware of the demographics of our readers and assume that most of them are associated with coal in some or the other way as we believe that a layman may not be interested in know-how of coal industry. If you have been in touch with our blogs, you may find that in our last post, we gave an insight on the history of coal mining in our country and assured of coming up with how the transition of coal mining from private firms to Government coalition further transformed into nationalization of coal mines.

Nationalization of coal mines is also an interesting process that happened subsequently. While the private coal mines had established themselves which later on developed into partial coalition, the dearth of quality coal products started glooming when the domestic consumption of this commodity increased at a burgeoning rate. In early 50’s, technology had already started taking over several business domains and the country was at a rapid development stage. Globalization was the next agenda that it wanted to step into, however an appropriate infrastructure was essential to get into the era of a phenomenal change. Demand for power increased which subsequently gave rise to demand for efficient thermal coal to generate electricity. The ash deposition or in short low gradient coal products were getting totally abolished.

Besides being on the pedestal of the developmental phases, maintaining the global environment was also a key perspective of power sector. Therefore, low quality of this essential carbon commodity was outright rejected. The private firms found it difficult to maintain their production due to lack of capital and meet this growing demand. Plus, poor working conditions and cheap condition of the labors was also a concern that kept them haunting. Unscientific ways of coal production and the prevailing conditions in the private sector was the main cause for the government to step into this arena. Also, the growing demand of steel industry required a systematic exploitation of the coking coal reserves in Jharia coalfield.

So during 1971-1972, the central Government decided to nationalize the coal mines and bring in a systematic and organized way of operations. The nationalization was not an instant process but was split into two phases. First in 1971 – 1972 the coking coal mines were nationalized and thereafter in the year 1973 the non-coking coal mines got nationalized.

Thus a new transition took place which benefitted all the counter parts associated with this industry. Strategic decisions, organized processes and manufacturing of quality products was clubbed with a close monitoring of the Central Government authority which regularized coal mining in the country. Several Acts came into place to monitor and regularize coal trading in India.

Coal traders in India found a new and systematic way to provide rich quality of coal supply to industries and the thermal power sector. We hope that this blog has been able to shed light on the important aspects which are now the foundation stones of this rapidly growing industry.

(Statistics Source: www.coal.nic.in)

The History of Coal Mining In India

We have been talking a lot about coal products and the current demographics of this industry. In this blog, we thought of peeping into the past and bring forward the history of coal mining in India which can be traced back to 220 years ago. Coal mining started in the year 1774 in Raniganj coal field, which lies on the western bank of river Damodar. This first project was undertaken by M/s Sumner and Heatly of East India Company. But surprisingly, due to lack of demand, this industry did not have much of scope for almost 100 years.

Sounds very strange, right? But this scenario continued till the first steam locomotive engine was introduced in the year 1853. This was the turning point and the sudden demand for coal intensified the production of coal to an average of almost 1 million tonne (MT) in a year. India being richly gifted with coal reserves saw a sudden boom and coal mining sector in India came into light as a prominent industry. Besides coal production, coal trading also grew up. Lots of coal traders in India surfed up and were swayed in this lucrative business option.

Source: http://www.wikipedia.org
Source: Wikipedia

Coal Production in India after Independence

By then, India was in a position to produce 6.12 MT coal per year till 1900 and by the year 1920 this further rose to 18 MT. This further increased to 29 MT by the year 1942 and 30 MT by 1946. During the First World War the production reached the heights and India surged to become one of the top coal suppliers.

In light of Independence in the year 1947, India underwent socio-economic changes. The radical changes were introduced in many industries and were applied. Coal industry being considered as one the prime industry, was decided to undergo a 5-year development plan. In the first plan, the annual production went rose to 33 MT(s). During this period, the need to have a systematic, organized and scientific way of increasing coal production was discussed.

As the first step to streamline this sector, National Coal Development Corporation (NCDC) was set-up which was a Government of India undertaking. This was to work along with the colliery owned by the Railways. Along with this, colliery named as Singareni Collieries Company Ltd. (SSCL) was already operational since 1945 and this became a Government company in alliance with Government of Andhra Pradesh in the year 1956. SSCL, since then, is a joint undertaking of Government of Andhra Pradesh and Government of India sharing its equity in 51:49 ratios. We can sum up saying that in the fifties, India had two Coal Government companies. Moving on further, this Government coalition underwent changes and sooner, Nationalization of coal mines came into the picture.

MaheshwariFuel Chem, after being successful coal suppliers in India for many years now, has witnessed the changes that have taken place in this industry. Through our blogs we keep our readers posted with the happenings in coal industry. In our next blog, we shall share information on Nationalization of coal mines.

To visit our website, click here.

(Statistics Source: www.coal.nic.in)

The biggest Challenge for the Power Sector in India

We all are pretty aware of the fact that coal is one of the most commonly used fuels in India to generate electricity. Out of the total power generated in the country today, 80% is derived out of this commodity. Therefore there is a significant demand for it in the country. Let us have a look at the other aspect. India is expanding at a rapid speed and the economic scenario has changed considerably. With lots of foreign investments and globalization happening around, India foresees a vision, and has devised strategic plans to elevate the ladders of development. Due to this, the standard of life of the common people also has changed radically. This economic growth and factors such as rural electrification has also subsequently increased the power demand in the country.

Statistics are Alarming!

If we see the statistics of the demand and supply gap of coal in the country, the least five years show that the demand for power has consistently kept increasing at the rate of 8 – 9% annually, whereas, the production of domestic coal in the country has only increased at the rate of 5 – 6% annually. This gap in between the demand and the supply of this highly used raw material in the production of power has raised an alarm.

Increase in Coal Imports.

The growing gap between the demand and supply of this commodity has compelled the coal based thermal power plants to rely on imported coal. Indian coal suppliers procure Indonesian steam coal as it has high efficiency and widely used in power sector industry.

Why has Electricity become Expensive in the country today?

The statistics for the year 2012-2013 reveal that the production of raw coal was 452.211 MT (million tonnes) as compared to 435.84 million tonnes which was produced in 2011-12. This clearly shows that there was a growth of 16.371 million tonnes over the corresponding period of last year. These production stats vis-à-vis the coal demand show a deficit of 50MT. The total domestic requirement for the year 2013-14 stands at 516 MT. In view of this shortfall and to meet this gap, power utilities have been advised to import 50 Million Tonne (MT) of imported coal for power plants. This procurement of imported coal indicates an expense of almost 6560 Million USD.

This varying gap between coal production and its demand will surprisingly keep on widening in the coming future and hence the country will have no other option than to rely on imported coal suppliers to meet its requirement.

MaheshwariFuel Chem which has become a name to reckon with in the field of coal trading ensures to deliver quality imported coal products to its suppliers. We are glad to associate with clients and strive to meet their expectations when it comes to quality supply. The challenge faced by power sector is certainly alarming and besides coal imports, we are still in the process of finding some robust solutions.

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(Pls. Note: The source of the statistics mentioned in this article is www.indianpowersector.com)

Indonesian Steam Coal Specifications

By now, we are sure that our previous blogs have shed some light on the various types of coal that are commonly used in different industries. Each variety has its own characteristic feature and is used in specific manufacturing processes. We also studied the necessary factors that define the good quality of this product. A coal product providing low carbon emission and high efficiency is the one that is preferred by clients. Among the various grades and variety of products available, steam coal finds a high usage.

Rise in Coal Production in India
Source: Google

Owing to its superb quality, this commodity is rampantly used in electricity generation. Through this blog, we have tried to get into the intricate details of this commodity and have brought to light some technical specifications that go into deciding the quality of this product.

What is Steam Coal?

Steam coal which is also popularly known as “Thermal coal” finds a profound use in power generation. It is coal grade between bituminous coal and anthracite.

The usage of Steam Coal

In earlier days, this was widely used in steam locomotives and the small coal nuggets were used as fuel for domestic water heating. Its primary objective is to generate heat through combustion. When this commodity undergoes a process during electricity generation, it is pulverized and burned in a furnace. The thermodynamic efficiency of the it to produce electricity by converting boiled water to steam and then further turning the turbines to generate electricity, has significantly improved. Almost 40% of the electricity produced in the world today is generated from Steam Coal.

Top Ten Producers of Steam Coal. (Data as of Year 2012)

PR China 3549Mt Russia 359Mt
USA 935Mt South Africa 259Mt
India 595Mt Germany 197Mt
Indonesia 443Mt Poland 144Mt
Australia 421Mt Kazakhstan 126Mt

Source: World Coal Association

Though, China leads the other countries in coal production, Indonesian Steam coal has a very high demand in the market. With Kalimantan being the primary producing area of this product, Indonesia is considered as a reliable and trustworthy partner for procuring good quality.

 Indonesian Coal Specifications:

While most of the countries procure Indonesian steam coal, they consider some crucial technical aspect of this commodity to be eligible for purchase. Since this is further supplied to power generating companies, one ensures to deal with a commodity which has excellent quality. Although typical specifications vary from mine to mine, the approximate statistics of parameters which decide the quality of Indonesian Steam coal is listed below.

  1. Inherent Moisture (%).
  2. Ash Content (%).
  3. Volatile Moisture (%).
  4. Fixed Carbon (%).
  5. Total Sulphur (%).
  6. Total Moisture (%).
  7. Size (mm)
  8. HGI (%).

As leading coal suppliers in the country, MaheshwariFuel Chem believes in enriching our readers on topics related to coal industry. Being a versatile sector, this industry has many known and unknown facts that affect the economy of our country. We desire to keep you posted on the old and new trends of this industry and hope that you find our blog informative and interesting.

Indonesian Coal – An environmentally friendly solution for coal-fired power plants

Being much aware of the multiple uses of coal and its indispensable position in power generation plants’, manufacturing units, paper and pharmaceutical industries; this non-renewable source of energy has a severe impact on the environment. The adverse effect of this high utility energy resource has certainly created an alarming situation. Probably, the first indications of the effects must have made everyone to think of alternatives that could tackle this situation. This also compels the coal traders and producers to make available rich and efficient coal products that could bring down the brunt of mediocre coal products being used in many industries.

Coal Trders

If you have been a regular reader of this blog, we are sure that by now you have a fair idea of the sectors where this non-renewable source of energy is used. The maximum chunk of it is consumed by coal-fired power plants to generate electricity. Statistics reveal that coal generates almost 42% of the electricity required in the world and India ranks the fifth largest consumer of energy.

Let’s get a deeper insight on this pertaining to our country – India.

Out of the total electricity produced in India today, 80% of it is generated with the help of coal. It contains high proportions of Sulfur dioxide (SO2) and Carbon dioxide (CO2). These two elements are sufficient to degrade the air and take a toll on our health. Extensive use of this energy source in generating power, automobiles and other industrial areas, together contributes to deterioration of the atmosphere.

Now, this stat can help you analyze the contribution we have made in ozone layer depletion and the trouble that we have invited.

There is an alternative to curb this issue and control the harmful effects that any normal coal product exhibits on the environment. Indonesian coal proves to be a much better and superior quality of coal product that has fewer ingredients of Sulfur (1%) and Carbon. It produces less smoke thereby causing a considerable decrease in air pollution. This unique benefit of Indonesian coal makes it more in demand nowadays.

There are many Indonesian coal suppliers in the country who has witnessed the surge in demand for imported coal products, especially, Indonesian coal used in the coal-fired powered plants. The leading Indian coal suppliers also ensure that they supply or make available only superior quality coal products. As a corporate social responsibility, it is an endeavor of every human being to avoid using any product that could harm the environment and can be the reason to raise issues of survival of living things on earth.

We have made a humble attempt to highlight the growing concern of using low-quality coal products. However, to tackle the issue of global warming, we all should care to make minimum use of power and energy so that we save energy and the planet as well!

The Impact of Coal Crisis in India

Undoubtedly, coal is one of the highly used energy resource in the entire world. More than half the energy needs are sufficed by this conventional energy resource. Conserving this resource and at the same time identifying the other sources which can meet the demand gap has become crucial. The facts as of today in India indicate a huge gap between the demand and supply of coal. Needless to say, that even the coal-fired power plants can see an alarming shortage and the depletion of coal has become a major cause of concern. It would not come to you as a surprise but the tendency of coal to form or generate naturally takes thousands of years; on the contrary the consumption of this product is at a high accelerated pace.

Coal Importers

As per the research and the ‘peak coal’ theory put forward, it is said that by the year 2025, this energy source will reach a plateau level, where it will show a surge for few years and thereafter it will start declining and eventually mark the unfortunate end of this resource.

What happens after this, is yet an unfold story. But the crisis of coal has made a huge impact in the country. Listed below are few facts that have created ripples in this industry and especially the power plants that have got affected who have a consistent demand for coal.

1. Almost half of the coal-fired power stations in India today have a stock that can suffice only for a week.

2. More than half of the country’s electric power generation plants run on coal. Coal imports of 1% and dearth of coal production has lead to frequent power-cuts in India. The country is yet to come to a robust solution on this issue.

3. Coal imports from countries such as Australia, Indonesia and South Africa is though on the radar, the new laws may increase the cost of fuel for domestic players.

4. The rising cost of coal can be a major concern thereby can raise the impact of this on buyer and subsequently on the coal traders in India.

5. India surprisingly is on the fifth position when it comes to having coal reserves and is also the third largest importer. This kind of contradiction is an unfortunate situation for us. The delay in securing clearance from the environmental authorities to add new coal mines and build up infrastructure for ease in coal transport from remote locations has lead to this situation.

6. The below average rainfall this year is another reason for hydro-electric production to fall deeply and this is one of the biggest reason for us to import coal.

Entrepreneurs who lead as steam coal suppliers,  Indonesian steam coal suppliers, screen coal suppliers are few of the entities who might be affected with this growing dearth of coal production.

The Importance of Assessing the Quality of Screen Coal Supply in India

India, per say, has a major role to play in coal trading. The reason to import coal and meet the coal requirements in India is due to the growing concern of scanty sources of coal. Carbon being the major aspect of defining the superior quality of coal seems to be at a lower value in coal found in India. Lets us have a look at some of the key attributes that contributes to coal quality.

Screen Coal Suppliers in India

1. Coal gradation
2. Ash level in coal.
3. Level of Moisture and Sulfur
4. Calorific value
5. Thermal Efficiency.

Coal having high calorific value and thermal efficiency is always the first priority. Ash levels also need to be less; Sulfur levels are usually less in Indian coal, however maintaining a proper balance in the coal ingredients is highly essential in order to make it compatible to the specific industry use.

The rich quality of coal constitutes the most crucial factor, which is essentially to be maintained by Indian coal suppliers. In order to meet the growing demand, coal traders cannot afford to engage in supply of mediocre coal quality. The usage of coal is wide and ranges from generation of power to manufacturing steel, pharmaceuticals, infrastructure and production units etc, therefore the quality of coal that is used in these industries need to be analyzed properly before application.

There are techniques that are used in industry to enhance the quality of coal. Coal washing is a widely used technique which is normally done in a coal washery where coal is washed. The objective in this process is to extract products of some specified quality as per the consumer’s requirement. The products obtained at coal washery are Clean coal which is used in metallurgical industry and Middling used in thermal power plants.

Screen coal is another exclusive coal product that has high usage in industry and is thoroughly screened by coal traders  before supplying it to the market. Widely used in industries such as paper and dye industry, power plants, cement industry, bricks industry, chemical industries, it becomes imperative that the screen coal that is used does not affect the environment and also boosts up the processes in which it is used. The industrial professionals at MaheshwariFuel Chem ensure that the quality of screen coal is assessed to derive its efficiency levels. We therefore, procure coal from reliable vendors and ensure to meet the demands of the market. At MaheshwariFuel Chem, the range of coal products we supply undergoes a stringent process of quality check, as we recognize the importance of assessing coal quality and appreciate the efforts taken by our professionals.

Importance of steam coal for electricity generation and Industrial applications in India

You may not be surprised to know that energy has an important role to play in the economic growth of a country. It also has major contribution in affecting the human development index (HDI) which measures the quality of life index and is a crucial factor indicating the development of a country. The most popular and highest contributing source of energy i.e. Coal leads among the other sources of energy. It contributes 59% towards electricity generation compared to other energy sources.

Imported Steam Coal Suppliers

Coal industry or companies trading in coal in India have a great opportunity in this sector. The need of quality coal for power generation and industrial applications in India has grown tremendously. Since the coal found in India has a low calorific value, steam coal or thermal coal which is the main ingredient in power generation is imported from Indonesia. Indonesian Steam coal suppliers in India such as MaheshwariFuel have primarily focused on providing superior quality of steam coal which has high efficiency and high calorific value.

The wide application of steam coal in power generation or thermal power and also its usage in manufacturing industries makes this product high in demand. You will be surprised to know that HDI of India has grown rapidly which also reflected in consumption of 75% coal of the total demand (i.e. 400 million tonnes coal out of 535 million tonnes demand) has been seen in total consumption in year 2012.

Apart from power generation, the use of steam coal is seen widely in industries such as steel production, cement manufacturing, alumina refineries, pharmaceutical industries, paper manufacturing etc. In steel industry almost 70% coal is required to produce steel. Steam coal comes in different grades and the some of the typical terminologies used among steam coal suppliers are welsh steam coal, polish steam coal and Indonesian bituminous steam coal.

Each type of steam coal has a specific purpose and use in the manufacturing units, however the bottom line essence remains the same and that is to have coal which gives low ash and high calorific value.

Maheshwari Fuel Chem Pvt. Ltd.

The profound use of steam coal in India today for the purpose of power generation and industrial applications vis-à-vis the coal shortage in the country, was the basic pivotal reason for MaheshwariFuel to step into this arena. Our journey since the inception was not easy. Procuring rich quality of coal to meet the growing needs of the Indian market was the main intention.  As imported steam coal suppliers, we ensured that the coal products that we supply to the market meet the exact requirements of our clients and foster their process of manufacturing and power generation. Our endeavor is to work towards supplying high quality coal products that leverages on its utility.

MaheshwariFuel Chem: Our Enduring Journey with Black Diamond

MaheshwariFuel Chem Pvt. Ltd.

Opportunities lie everywhere and comes in disguise. We reverently agree with this statement. The brand of MaheshwariFuel Chem soared high because of the opportunity that we saw in black diamonds. You might wonder what these black diamonds are! Most commonly known as coal, black diamond is the acquired name of this energy resource. Sounds strange, but very few would be aware of the lucrative opportunities as coal trader.

Coal Traders

Coal trading in India is a significant business sector which has grown leaps and bound and the competition has always been at its peak. Nevertheless, to rule this industry one requires few skills to acquire and hone. MaheshwariFuel Chem has passionately worked on these requirements to emerge as leading coal suppliers in India. Our endeavor in supplying a wide range of coal products empowers us carve a niche in this area and achieve new milestones.

Since after the foundation stone was laid by Late Shri. Rameshchandraji Rathi, Ashok K. Maheshwari and Rajesh K. Maheshwari, MaheshwariFuel Chem has elevated its product portfolio and services with each passing year. We started with a micro-business set-up which was nurtured to define new dimensions in this industry. Our enduring journey with the black diamond’s scaled up to grow enormously and personified MaheshwariFuel Chem brand as one of the leading coal traders.

We precisely sensed the needs of the market and came up with a range of product portfolio. The idea was just not to supply coal, but create a niche by being foremost in supply of superior products.  Our product gallery boasts of coal which meets international standards and undergoes a rigorous quality screening. Our quality assurance team does a dutiful job by regular checks on the production and ensures highest efficiency in each variety of products.

We emphasize on eco-friendly products which are used exclusively in metallurgy, manufacturing and power generation units.

Our range of product comprises of several categories which includes:

  1.  Indian coal
  2. Pet coke
  3. Imported coal (Indonesian Coal, Australian Coal, Chinese Coal, South African Coal, Anthrised Coal)
  4. Imported Screen coal

MaheshwariFuel Chem takes pride in being the leading Indian Coal suppliers which has been instrumental in catering dedicatedly to the diversified needs of our clients. A standard SOP (standard operating process) is followed in the entire production process which begins right at the time of coal acquisition. Our coal vendors provide us with authentic and supreme quality coal and support us in our endeavor to supply rich quality of coal products.

We are glad to be a part of this enduring journey with black diamonds and continue with our sincere efforts.