YEAR September, 2014
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TITLE Future of Coal – A Strategic Energy Resource
AUTHORS
INDIAN CHAMBER OF COMMERCE
Dr. Rajeev Singh,Director General
ICC TOWERS4, India Exchange PlaceKolkata - 700 001. West Bengal.
Tel : 91-33 2230 3242 - 44Fax : 91-33 2231 3377/ 3380E mail : [email protected]
Public and Social Policies Management (PSPM) Group, YES BANK
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Coal is the most significant source of primary energy in India and caters to around 52% of
primary commercial energy needs. While India has the fifth largest coal reserves in the world,
estimated at over 250 billion tonnes, it imports nearly a third of the world's coal to fuel its power
plants. By 2030, this coal demand is estimated to reach 2 billion tones, creating significant
pressure on extraction costs, market prices and the cost of power.
Despite enormous potential, the sector is plagued with regulatory challenges, unresolved policy
issues, inadequate infrastructure facilities and environmental and capacity issues. These
significantly dampen the potential of the sector and in turn, overall growth and development of
the economy. The Government should augment its policy framework and encourage institutional
innovation for effective coal reserve management and address the challenges of capital and
operational costs, infrastructural requirement, as well as labour, land, mining and taxation
reforms.
The Government has demonstrated a strong focus on the sector in the Budget, which
emphasizes several comprehensive measures for enhancing domestic coal production along
with stringent mechanisms to ensure quality control and environmental impact. Additionally,
standardization of customs duty on coal, across grades and types, will eliminate assessment
disputes. The Government's commitment to provide adequate quantity of coal to power plants
by resolving the existing impasse in the sector will also boost investor confidence. The recent
Nuclear Cooperation agreement between India and Australia and availability of top-quality
Australian coal will significantly augment India's energy security.
YES BANK is committed to working closely with all key stakeholders to bring about a
transformational change in the energy sector and realize the Government's vision of providing
24x7 Power at Affordable Rates to All.
In this context, I am pleased to present the YES BANK - ICC Knowledge Report 'Future of Coal –
A Strategic Energy Resource' which highlights key opportunities and focus areas in the Coal
and Energy sector.
I am confident that the contents of the knowledge report will provide important insights on
addressing concerns of the coal and energy sector for realizing it's true growth potential and
energy security for the Nation.
FOREWORD
Thank you.
Sincerely,
Rana Kapoor
MD & CEO
Coal contributes over half of India's primary commercial energy. Though the share of renewable
energy is gradually expected to increase in the coming years, coal is likely to remain India's most
important source of energy for the coming decades. The sector has been beset with
controversies of late such as the controversy related to allocation of captive coal blocks, or
insufficient coal production leading to questions about who should bear the increased costs of
coal imports.
However, these controversies have not helped the coal sector at all, nor have they been able to
identify the fundamental challenges that need to be addressed if the sector has to function
healthily and promote the causes of energy access and energy security in India.
The gap between demand and availability of coal in India is expected to rise every year. Today
nearly most of the country's total installed power capacity is generated using coal. India ranks
fourth largest in coal reserves and the third largest coal producing country in the world.
Though the coal demand has risen considerably over the last couple of years, coal production has
not been able to keep up with the requirements. Organisations are acquiring mines abroad to
augment the capacity and meet the growing demand. Besides, there is also an urgent need to
adopt some possible measures like rationalization of coal linkage, dedicated freight corridors to
improve the situation, need to develop skill sets of mining professionals, promoting under ground
mining, cleaner coal technologies for sustainable development.
In this context, Indian Chamber of Commerce to further strengthen its support amongst thindustry representatives and policy-makers presents the 6 India Coal Summit during 23rd
September 2014 at New Delhi. Yes Bank Ltd is the Knowledge Partner of this initiative. This
platform will bring together various stakeholders to discuss, share and evolve suitable strategies
and development models. I am certain that this summit will be able to come up with some
answers to the many vexed questions of this sector.
MESSAGE FROM ICC PRESIDENT
Roopen Roy
President
Indian Chamber of Commerce
1. Overview: Global & Indian Coal Industry 1
2. Growth – India Perspective 7
3. Policy & Regulatory Environment 11
4. Inclusive Growth – Scope for 15
Greater Partnerships
5. 10 - Point Roadmap to Sustainable ..................29
Development in Coal Mining
..........
1.1 Global Trends of Coal ....................................2
1.2 Strategic Importance of Coal in India ............4
.................................
2.1 Future Demand & Supply Gaps .....................8
2.2 Dependency on Imported Coal......................8
2.3 Energy Security – Investment in....................9
Coal Mines Abroad
.....................
3.1 Coal Mining Legislations..............................12
3.2 Reforms in Coal Mining ...............................13
3.3 Land Acquisition ..........................................14
............................
4.1 Private Sector Participation ..........................16
4.2 Securing Finances for Development............20
4.3 Sustainable Development............................22
4.4 The Social Equity Model ..............................24
Contents
1Coal is one of the most vital sources of energy fueling nearly 40%
of the global production of electricity and bolstering steel and
cement productions among other industrial activities. Coal has also
been the fastest growing energy source in the last decade while
exceeding the growth of gas, oil, nuclear, hydro and renewable.
Globally, proved coal reserves stood at 891 billion tons in 2013, of which 34.8% was
recorded in Europe and Eurasia, 32.3% in Asia Pacific, 27.5% in North America, 3.7% in 2
Middle East and Africa and 1.6% in South and Central America . World’s proven coal
reserves in 2013 were adequate to last 113 years at current world production level. US,
Russia and China together hold the largest reserves in the world, however, regionally,
Europe & Eurasia record the maximum reserves. Currently, India has the 5th largest reserve
of coal in the world accounting for nearly 6.8% of the accumulated global coal reserves.
1.1 Global Trends of Coal
NorthAmerica27.50%
South &Central America,
1.60%
AsiaPacific,32.30%
Europe andEurasia,34.80%
Middle East &Africa, 3.70%
Other, 5.30%
Figure 1: Proved Coal Reserves in the World (2013)
1 The Coal Resource - World Coal Association (www.worldcoal.org)2 BP Statistical Review of World Energy, June 2014
Source: BP Statistical Review of World Energy, June 2014
2 Future of Coal – A Strategic Energy Resource
01 | Overview: Global & Indian Coal Industry
Source: BP Statistical Review of World Energy, June 2014
rdDespite such abundance, India is the 3 largest importer of coal in the world. In 2012-13,
coal imports stood at 145 million tonnes. This figure rose by 17.9% to 171 million tonnes in 3
2013-14 amid the growing demand supply gap of coal .
In 2013, World coal production increased by 0.8% with the highest production increment
recorded in Indonesia at 9.4%. This was followed by Australia at 7.3% increment sufficient
to offset the decline in US of 3.1%. China recorded the weakest volumetric growth in
production since 2000 at 1.2%. Coal consumption on the other hand grew by 3%, well
below the 10-year average of 3.9%, yet the fastest-growing fossil fuel amongst others. 4India and China alone accounted for nearly 88% of global growth .
3 BP Statistical Review of World Energy, June 2014
4 BP Statistical Review of World Energy, June 20145 BP Statistical Review of World Energy, June 2014
The share of coal globally as a primary energy source has reached 30.1%, the highest since
1970. Consumption of coal outside OECD rose by a below average 3.7% while still
accounting for 89% of global growth. OECD consumption rose by 1.4% with the increases
in Japan and US countering the subsequent declines in EU. China experienced the weakest
absolute growth since 2008, however, still accounted for 67% of the global growth. India
accounted for 21% of the global growth while recording its second largest volumetric 5increase on record .
Future of Coal – A Strategic Energy Resource3
69%
14%1%
12%
0%
4%
North America
South & Central America
Europe & Eurasia
Middle East
Africa
Asia Pacific
Production of Coal (Million Tonnes Oil Equivalent)
Figure 2: Global Production of Coal 2013
Company 2012-13 2013-14 2013-14 Achievement Growth
Target Actual (%) (%)
CIL 452.21 482.00 462.53 95.96 2.3
SCCL 53.19 54.30 50.47 92.95 -5.1
Captive 34.23 50.00 38.88 77.76 13.6
Others 16.78 18.25 13.76 75.40 -18.0
Total 556.41 604.55 565.64 93.56 1.7
Source: Ministry of Coal, Annual Report 2013-14
1.2 Strategic Importance of Coal in India
Coal deposits in India have mainly been confined to eastern and south central parts of the
country including states such as Jharkhand, Odisha, Chhattisgarh, West Bengal, Andhra
Pradesh, Maharashtra and Madhya Pradesh accounting for more than 99% of the total coal
reserves in the country. Basis the figure below (Figure 4) coal production in India during
2013-14 stood at 565.64 Million tonnes compared to 556.41 Million tonnes (MT) in 2012-13
while recording a growth rate of 1.7 per cent. The Company-wise details for the production
of Coal by CIL, SCCL and others are given below:-
4 Future of Coal – A Strategic Energy Resource
Figure 4: Company wise Production of Coal in India 2013-14
While domestic production has been falling short of annual targets, demand of this
strategic resource, which fuels 76% of the power requirement in the country, has seen a
continuous upward trend. In addition to the reasons for overall shortage due to supply gap,
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2003 2005 2007 2009 2011 2013
Asia Pacific
Africa
Middle East
Europe & Eurasia
South & Central America
North America
Figure 3: Global Consumption of Coal, 2013
Global Consumption (Mn Tonnes Oil Equivalent)
Source: BP Statistical Review of World Energy, June 2014
the country imports coal due to low caloric and high ash content nature of Indian coal
which necessitates import of high quality coal to meet specific requirements like in steel
plants.
Future of Coal – A Strategic Energy Resource5
The Demand for Coal increased markedly from 549.02 Million Tonnes (MT) in 2008-09 to
662.94 MT in 2012- 13. It was estimated to be 769.69 MT for the year 2013-14. The Sector
wise total Coal demand/actual supply during 2012-13 (Actual) is given in figure 5.
Figure 6: Coal Imports in India
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Coking Coal 16.89 17.88 22.03 21.08 24.69 19.48 31.80 32.56
Non CokingCoal
21.7
25.2
27.76
37.92
48.57
49.43
71.05
105.00
Coke 2.62 4.69 4.25 1.88 2.36 1.49 2.36 3.01
Total Import 41.21 47.77 54.04 60.88 75.62 70.4 105.21 140.57
Source: Ministry of Coal, Annual Report 2013-14
Figure 5: Sector wise Share of Demand for Coal
7% 3%3%
76%
11% Steel
Sponge Iron
Cement
Power
Other Fertilizers, BRK etc
Sector wise Share of Demand for Coal (2013-14)
Source: Ministry of Coal, Annual Report 2013-14
2.1 Future Demand and Supply Gaps
The demand for Coal during 2013-14, was estimated to be 769.69 MT, whereas the
domestic availability was estimated at 614.55 MT. The gap of 155.14 MT was projected to be 6met through imports. However, during the year 2013-14 , the actual indigenous supply of
Coal stood at 571.00 MT. As per figures provided, about 168.5 Million Tonnes of Coal was
imported during 2013-14. The demand supply gap has evidently been increasing over the last
decades with growing pressure on imports.
thAs per forecasts, the demand for coal by the end of 12 Five Year Plan (2016-17) is expected
to increase to about 980 MT while domestic availability is expected to fall short at 795.0 MT,
subject to availability of requisite land for coal mining and all clearances in time. Therefore,
there is likely to be a gap of 185.50 MT, which is required to be met through imports. The
details of projected demand supply gaps are given below:-
Figure 7: Coal Supply and Demand in India
6 Ministry of Coal, Annual Report 2013-14
8 Future of Coal – A Strategic Energy Resource
02 | Growth – India Perspective
2012-13 (BE) 2013-14 (BE)
Total Indigenous Supply 795.00
Demand Projected 980.50
Projected Import Requirement 185.50
Total Import 140.57
Source: Ministry of Coal, Annual Report 2013-14
2014-15 (BE) XII PlanProj. 2016-17
580.3
772.84
192.54
140.57
614.55
769.69
155.14
140.57
643.75
787.03
143.28
140.57
2.2 Dependency on Imported Coal
India is the fourth largest consumer of energy in the World after USA, China and Russia.
Despite having some of the largest coal deposits in the world, India’s quest of securing
energy security has been marred by inadequate exploration budgets and planning, excessive
delays in project clearances, inadequate logistics and more recently, intervention of the
Supreme Court in captive block allocations.
Evidently, as energy intensity and needs have been
rising, India has been progressively becoming
dependent on the imports. High energy prices have
further impinged energy security.
Further, keeping in view India’s economic growth
estimations, total coal demand is projected to
increase to about 2,000 million tons by 2031-32,
which will further entail pressure on domestic
production and imports.
Future of Coal – A Strategic Energy Resource9
Figure 8: Projected Coal Demand (in Million tons)
Sector 2005-06
Electricity
2006-07 2011-12 2016-17 2021-22 2026-27 2031-32
310 341 539 836 1040 1340 1659
Iron and Steel 43 43 69 104 112 120 150
Cement 20 25 32 50 95 125 140
Others 53 51 91 135 143 158 272
Total 426 460 731 1125 1390 1743 2221
Source: Ministry of Coal & Planning Commission Report
2.3 Energy Security – Investment in Coal Mines Abroad
There are a number of factors that drive acquisition of coal mines abroad. Some of them
include- Stagnant domestic coal supply; good quality coal; and greater reliability of coal
supply abroad.
Currently a number of companies in end use sectors are striving towards securing coal
mines abroad and expanding their resource base. However, while identifying the coal rich
countries other issues including international coal trade routes, present sources of coal for
Source: Mott MacDonald
Figure 9: Factors driving acquisition of Coal Mines abroad
Coal Mine Aquisition
Abroad
Stagnant domestic coal
supply
Good quality coal available
abroad
Greater reliability of coal supply
abroad
Source: YBL Analysis
India, port and logistics infrastructure facilities available in source countries and port
facilities available in India need to be taken into consideration.
Moreover, a number of constraints with respect to
the conservative attitude of the coal rich countries
in regards to permit entry to foreign players in
controlling a strategic asset like coal, absence of
any sovereign fund for developing infrastructure in
the host countries, the aggressive Chinese model
of Merger & Acquisition to control coal properties
in different parts of the world and limited
empowerment of Indian PSUs to take strategic
business decisions are identified as major
hindrances in acquiring coal assets worldwide.
In order to ensure effective coal block acquisitions worldwide, the government should
propose clear guidelines permitting PSUs to be strategically aggressive for maiden foreign
acquisitions, to omit the distinction between listed and unlisted companies with regards to
acquiring foreign assets, to encourage the appointment of Investment Bankers on
nomination basis to incentivize them for bringing exclusive deals which can be transacted
on one-to-one basis, to introduce tools and guidelines related to financial parameters to
facilitate speedy decision making that would fast track the entire Merger & Acquisition
(M&A) transaction, and to include a suitable clause that would mandate the process of
reviewing the proposed financial powers of the board linked to periodic foreign investment.
An initiative of Ministry of Steel, Government of India, has been the set up of the
International Coal Ventures Private Limited which is a Joint Venture Company with SAIL,
CIL, RINL, NMDC and NTPC as the promoter companies for securing metallurgical coal and 7
thermal coal assets in overseas territories. Its primary objectives include :
üTo ensure supply of imported met coal, of at least 10% of the 2019-20 requirements
of SAIL and RINL, i.e. say five million tonnes per annum, from assets overseas as
medium term target to be achieved by 2011-12, being a step towards security of
supply.
üown of about 500 million tonnes of met coal reserves by 2019-20.
üTo meet the requirements and to serve the organizational aspirations of other
participating companies like CIL, NTPC and NMDC by providing a facility for
enhancing and leveraging their domain knowledge and human capital for
international mining business development and also for procuring high quality
thermal coal for companies like NTPC.
10 Future of Coal – A Strategic Energy Resource
7 http://icvl.in/aboutus.php?tag=company-aboutus
Source: theblaze.com
12 Future of Coal – A Strategic Energy Resource
03 | Regulatory Environment
Policy and
3.1 Coal Mining Legislation
Resources in India are primarily managed by the
central and state government. The proprietary title
vests in the federating states while the center has
jurisdiction over the development of mines and
minerals. As per the Mines and Minerals
(Regulation and Development) Act (MMRDA), 1957
coal was listed as a schedule one mineral. This
implied that although the ownership of coal
resources vests with state, prospecting and mining
are controlled by the central government There
exists several policies and legislations that govern various aspects of the coal sector. The
figure below gives the legislations governing coal mining in India. Basic laws constitute -
The MMRD Act, 1957; Mines Act 1952; Forest Conservation Act 1980; Environment
Protection Act 1986; and all the rules framed under them are applicable to coal mining.
The National Mineral Policy (NMP) which was first formulated in 1993 and subsequently
revised in 2002 and 2008, guides the implementation of MMRD Act and other legislations.
As per the Hoda Committee's recommendations and the subsequent revision of the NMP
in 2008, the MMDR Act is being amended to ensure that developments in mineral
resources are in harmony with the national policy goals. A draft bill for the same, MMDR
Act, 2011 was also tabled in the parliament, which could not be passed and has since
lapsed.
Source: ABC News
3.2 Reforms in Coal Mining
Over the recent years, mining sector has undergone various reforms with respect to
greater transparency in approvals, removing regulatory hurdles, and incentivizing
investments in the sector. This has also had a direct impact on the coal sector. The new
NMP 2008 and MMRD Bill 2011 (now lapsed) aimed to address multiple industry and
community concerns emphasizing on benefits sharing, minimizing footprint, improved
participation in decision making, and effective mechanism for redressing grievances.
As was recommended in the draft bill, competitive
bidding will be effective in increasing transparency
and private sector participation that is currently a
major roadblock in the development of the mining
sector. The blocks offered to private players for
captive mining are neither of high quality nor
conducive to economic development.
Moreover, as per the draft Bill, Coal producing
companies will now be liable to contribute 26% of profits towards District Mineral
Foundation (DMF), which will further be used for the benefits of people affected in local
Future of Coal – A Strategic Energy Resource13
Source: COALFACE Magzine
Figure 10: Legislations governing Coal Mining in India
Mines Act 1952 Mines and Minerals
(Regulation and Development)
Act 1957
Forest Conservation Act 1980,
& Environment Protection
Act 1986
State Minor
Mineral Concession
Rules
Mineral
Concession
Rules, 1960
Mineral Conservation
& Development
Rules, 1988
Granite Conservation
& Development
Rules, 1999
Coal Mines(Conservation
& Development)Act, 1974
Mines Rule, 1955;
Coal Mines Regulations,
1957; Metalliferous Mines
Regulations, 1961;
Maternity Benefit
(Mines) Rules, 1963
Mining Legislation
Source: Governance in Coal Mining- Issues and Challenges, TERI-NFA Working Paper 9
areas. The compensation to local people and rehabilitation measures as given in the
national Resettlement & Rehabilitation policy could holistically improve standards of living
of people displaced by mining activities. Effective utilization of this fund is of great
importance. In this respect, it is vital to have transparent and participatory mechanisms that
encourage effective utilization of funds collected through DMF for community
development.
In order to improve regulatory oversight, establishing a coal regulator would be timely for
inducing competition, transparency and creating a level playing field. However, a vital factor
determining its success in instilling faith in the governance system and acceptance of
mining is its independence from the government as well as the industry.
The Land Acquisition and Relief and Rehabilitation Bill introduced in 2011 attempts to
address the problems with Land Acquisition Act 1894, which have been the center of
debates and controversies for many years. Unclear definitions and clauses, absence of
requirements for compensation, participation and R&R in the Act are some of the issues.
The Bill has introduced a number of effective changes which mandate provisions with
regards to taking consent of atleast 80% of the affected people, broadening the definition
of affected people to include sharecroppers, agricultural labourers, tenants etc. and
conducting Social Impact Assessments (SIA) through independent bodies for better
evaluation of the ill effects of mining.
While these policy initiatives are effective in terms of addressing the shortcomings in
governance in the coal mining sector, much is dependent on the implementation of these
policies. As observed, much of the challenges in governance are not due to the lack of
policies, but due to their flawed implementation. Therefore, adoption of policies coupled
with effective implementation is vital for the future of this sector. Some critical
reformations include:
1. Increasing transparency and knowledge on various issues
2. Strengthening capacity of existing regulatory agencies and local institutions
3. Ensuring timely and regular co-ordination among centre, state and district level
agencies
4. Enhancing the responsiveness and accountability across all levels of government
5. Laying clear rules and guidelines on the power, functions, and responsibilities of
different institutions
3.3 Land Acquisition
14 Future of Coal – A Strategic Energy Resource
04 | Inclusive Growth – Scope for Greater Partnerships
Importance of Coal to India’s energy security
cannot be underestimated, and in spite of having
huge Coal reserves, the country still faces
shortages. Coal as a sector has always been slow
on policy reforms, and is still highly regulated.
Since the beginning government-owned companies
had spearheaded the growth in the industry,
however going forward the rising demand for coal
in the country substantiates the need for
promoting greater private sector participation.
The chain of activities starting from exploration of Coal resources to planning of mines and
extraction of Coal after shaft sinking or removal of overburden (OB) and Coal washing,
preparation and transport involves several separate disciplines and calls for different types
of skills. Modern management practice suggests that in such cases each individual activity
should be entrusted to a separate company who have specialized knowledge and skill in
that part of the production chain. Leasing and out sourcing of services has made significant
contribution to the high productivity in many industries and the same will be productive in
the Indian Coal Industry.
Exploration is the foremost activity crucial for identifying new and economically viable
mines. The process of exploration being a multistage pursuit and involving a plethora of
activities and technologies culminates into the modeling of the resource for projects. Today
the country has indicated and inferred reserves and having these reserves underground is
no assurance of its availability. Therefore exploration efforts should not just aim at enlarging
the resource base but to upgrade these known resources remaining under ‘Indicated and
‘Inferred’ categories through detailed exploration. Such exploration will provide the
information required to evaluate the potential profitability of developing or expanding
mineral operations at a particular site or area.
4.1 Private Sector Participation
1. Exploration Technologies
216 Future of Coal – A Strategic Energy ResourceFuture of Coal – A Strategic Energy Resource
Source: National Geographic.com
Such exploration activities are time consuming and require huge investments.
Consequently, world over rather than expending tax-payers' money, `junior exploration
companies' funded by private capital are encouraged to pursue these risky activities. The
role of the government is to continue performing the tasks assigned for exploration and
survey however going forward private sector should spearhead investments in
reconnaissance and exploration.
Coal mining was brought under the public sector
with the passing of Coal Mines (Nationalization)
Act, 1973; although the act has been amended in
June, 1993 to allow for captive mining by the
private sector, initially for generation of power and
coal washeries, and later extended to select few
industries. Commercialization of the sector and
entry of new players will result in improvements in
eff ic iency and product iv i t y, increase in
investments, delivery of better quality of services
and improved access, and lowering of prices for the consumers. However, despite the
realization, there has not been much progress in improving private sector participation in
the sector.
Still the role of private sector in the Coal mining and development has been very limited
with limitations both on the end use and restrictions on open commercial sale of coal.
Allowing private participation either directly or by partnering Government companies could
be the possible solution for ramping up Coal production in the country and taking the
country towards self-sufficiency. Public-Private Partnerships (PPP) and Joint-Venture models
should the possible routes for facilitating large private sector investments in Coal mining
sector. However it has to be implemented in its true spirit and must involve ownership, to
achieve the desired results of such a partnership.
Another key area for partnerships with private sector is underground mining, which has
made rapid strides in technology up gradation in the world and has been relatively stagnant
in India. In the area of underground mining, new technologies will have to be introduced in
mine development to reduce the gestation period of mines, introduce better mine support
through appropriate strata control investigations, development of suitable methods for
induced caving such as hydro-fracturing for hard roof management for shallow and medium
depth of cover and also in the other areas like drilling and blasting, transportation, etc.
Some of the challenges being faced by Captive Mine owners in development of their blocks
include remote location of allocated blocks, delays in land acquisition and environmental
clearances, lack of access infrastructure for evacuation of Coal, and frequent policy
impasse. Focus of the Government should be in facilitating the removal of such barriers in
Coal mining and opening of the sector to free market conditions.
2. Coal Mining & Development
Future of Coal – A Strategic Energy Resource17
Source: Galleryhip.com
3. Logistics Infrastructure:
Logistics is a key factor in the Coal supply chain, as transportation can account for up to 70
percent of the delivered cost of Coal. Efficient use of Coal requires enabling infrastructure
support to transport from mine head to consumption centers. Today, supply chain logistics
is one of the major challenges facing the sector, as the allied transport infrastructure in
India is underdeveloped. This effect is clearly visible as Coal from pit heads lying idle for
months cannot find its way to the railways sidings for further transportation. Effective
management of logistics will ensure increased availability of Coal, since the production
capacity of a mine is directly dependent on the pace of excavation to end users.
The usual modes for Coal movement in India are rail, rail-cum-sea (coastal movement),
road, merry-go-round, belt and ropeways.
18 Future of Coal – A Strategic Energy Resource
Figure 11: Coal Transportation Mix in India
Means Characteristics
Railways Economical, cheapest and fastest mode for bulk amount for long distance
Roadways Viable, beneficial for distance between 50 to 300 meters and for small quantity
MGR Best suitable for pithead power plant and for bulk amount
Others Inland Waterways etc.
Source: Planning Commission, 2011
Share
56%
19%
18%
7%
Although already diminishing, Coal transport by road will remain a reality in India for some
time to come. The increasing share of railway transportation is making Coal logistics in India
more sustainable over the long term. The construction of expensive new lines is, however,
proceeding slowly and the overburdened railway transport network is causing bottlenecks
in the transport of Coal.
Since import of Coal would be an important feature for bridging the demand-supply gap,
planning for creating port facilities and capacity building for hinterland movement of
imported Coal from ports to consuming centers would also be of immense importance.
Increased availability of rolling stock, improving turn round of rakes and harnessing the
potential of alternative modes of transportation for Coal evacuation, particularly the use of
inland waterways are some of the avenues identified as thrust areas. The critical issues in
respect of movement logistics are:
1. Railway capacity
2. Port Capacity: Mechanization of Ports, Available Stack Space, Draft Availability
3. Capacity for transportation of Coal at the railway sidings
4. In case of pithead consumption centers, synchronization of development of mining
project and captive mode of transportation
The importance of optimization of available logistics infrastructure through source
rationalization, investment in logistics infrastructure and development of end-to-end
logistics solution companies in PPP model, and harnessing the potential of alternate modes
of transport of Coal are important areas for building up the logistics strategy. Private sector
will have a critical role to play in building the necessary infrastructure, since they form the
majority of the Coal end users.
Clean Coal Technologies (CCTs) are the technologies
being employed and developed globally to meet
Coal’s environmental challenges. These technologies
include Coal Washing, Coal Gasification, Coal Bed
Methane, Underground Coal Gasification and Coal
Liquefaction. R&D in these technologies will allow for
continued use of India’s abundant domestic
resources and the affordable energy they provide to
business and consumers. CCTs are required to
continue improving energy efficiency and to meet increasingly stringent environmental
challenges and expectations.
Most of these CCTs which are emerging as in Coal sector in the world are still at a nascent
stage in the India and needs both policy impetus and R&D investments. Coal companies
could consider investing a certain percentage of their Post-tax Profits in R&D every year.
Private sector participation in R&D work should be encouraged by involving research
scholars, academicians and reputed overseas institutions in joint projects.
While industry will finance significant portions of each CCT project, it is critical that the
central government provide funding through the appropriations process. Sufficient funding
is needed to assure continued research, development and demonstration of a new
generation of advanced technol¬ogies that are promising but too high-risk to be financed
solely by private industry. A strong commitment to clean Coal technology from the Central
Government will allow the country to take full advantage of its vast Coal reserves and meet
growing demand for electricity while meeting critical environmental objectives.
Another possible option should be to create a R&D fund by pooling a certain percentage of
combined revenue of Coal industries in the public
and private sector. The companies paying the levy
should be encouraged to set out their perceived
research & development priorities and get such
projects included in the list and bid for taking up the
projects when the bids are invited. The selection of
project and management of the fund can be
performed by a regulator set up by the Ministry of
Coal.
4. Clean Energy Technologies
Future of Coal – A Strategic Energy Resource19
Source: Asia Energy Journal
Source: CSIRO
4.2 Securing Finances for Development
Coal supply chain is made up of very large, well-capitalized companies as well as medium
and small companies; public companies which operate for profit and state-owned
companies which are not always profitable. Regardless of the size and structure all
companies operating in the supply chain require vast amounts of capital.
Natural resources companies have been evolving their financing needs and are moving
from primarily equity-based financing (which obviously has a diluting effect for
shareholders) to debt-based financing, in particular, via project financing. Successful project
financing of mining and natural resources projects requires a number of specific issues to
be considered. The ability of a mining project to attract finance is often dependent on
where it lies in the development cycle. The closer it is to the exploration stage the more
likely it will have to be funded with equity. The likelihood of a project securing debt will
increase as it moves through the cycle towards development.
Equity is the most common type of capital for mining projects and no project is fully
funded by debt finance regardless of how economically robust the project might be. In
majority of cases the projects have a debt: equity ratio in the range of 50:50 to 80:20.
Equity is usually sourced from private investors or through stock exchange listings and
rights issues, or generated within the business.
Venture capital is an essentially equity that is provided in
the form of a speculative investment. It is not normally
intended to be permanent capital but injected into a
company for a definitive period during which the investor
would be looking for a substantial move in the share price
before exiting the investment.
Quasi-equity is debt that is structured in such a way that it
appears to be equity, and usually takes the form of
convertible debt that can be converted to ordinary equity should its value increase due to
movements in the share price. Quasi-equity is normally subordinated to senior debt (in
return for the option of converting it into equity), and has the effect of reducing the level of
gearing as it is reflected as equity. Generally the risk profile of a potential project is at its
peak in the early stages and decreases with progression through the development phases.
The risks at the early stages, usually up to the point where a pre-feasibility study ('PFS') has
been completed, are normally beyond what typical commercial banks would be willing to
expose themselves to. Selected banks however, have the appetite for this level of risk and
where the PFS indicates a very strong project, they are prepared to provide funding for
completion of the Bankable Feasibility Study ('BFS'). This is normally with the intention of
securing the right to arrange the finance for the development of the project.
Risks common to the mining industry can be characterized as:
Direct Risk - As countries tighten their environmental regulations and public concern about
the mining industry grows, pressures increase on companies to minimize their
environmental impacts and pay greater heed to local social issues. This may increase
20 Future of Coal – A Strategic Energy Resource
Source: Minerals Education Coalition
companies' capital and operating costs in order to comply with increased environmental
regulations and social expectations. This can have an impact on cash flow and profitability, a
borrower's ability to meet loan repayments and the value of the entire operation. It is
therefore, important to thoroughly assess environmental performance as part of the normal
credit appraisal process.
Indirect Risk - Legislation impasses from country to country but many adopt the 'polluter
pays' principle to pollution incidents. Financiers are increasingly concerned to avoid being
placed in positions where they might be considered directly responsible for the polluting
actions of their clients, in this case mining companies. Otherwise, in the case of a pollution
incident, financial entities may find that not only have they lost the value of their original
involvement in a particular project, but they may find themselves being forced to meet
what may prove to be substantial clean-up costs or even further liabilities.
Reputational Risk - Financial institutions are under increasing scrutiny concerning their
involvement in a number of sectors, from governments, regulators, NGOs, the public and
the media. Failure to give careful consideration to environmental impacts from projects
financed, invested in or insured can result in negative publicity for both the respective
company and the financial institution.
There are many other factors which influence an investor's decision to finance a mining
project which include an analysis of the current state of the industry (supply, demand and
price factors), the profile of the company (cost profile, operating efficiency, technology,
labor factors, access to raw materials, reserve replacement strategy, contingency and
emergency planning, safety and environmental record, management) and the state where
the project will be located (political risk). All these aspects are important as mining projects
can experience various difficulties throughout its development cycle.
Future of Coal – A Strategic Energy Resource21
Figure 12: Financing of Mining Projects
Development Phase Type of Funding
Prospecting Equity
Source: YES BANK Analysis
Funding Sources
Shareholders
Initial Exploration Equity Shareholders
Advanced Exploration Equity Shareholders
Venture Capital Specialized Resource Funds
Pre-Feasibility Report Equity Shareholders
Venture Capital Specialized Resource Funds
Quasi-Equity Select Financial Institutions
Bankable Feasibility Study
Mine Development
Post-Commission
Equity Shareholders
Venture Capital Specialized Resource Funds
Quasi-Equity Select Financial Institutions
Debt with Recourse Commercial Banks
Equity Shareholders
Debt with Limited Recourse Select Financial Institutions
Equity Shareholders
Debt with Recourse Select Financial Institutions
Expertise needed for underwriting a mining project in general is limited in India. Though
environmental, health & safety concerns are considered as major issues, they form only a
part of the problems for the lender. Finding the right means to safeguard lenders from
these risks is very important.
1. Allowing assignment of mining rights in favor of lenders in case of default
2. Removal of the bar on outside sale in case of financial stress or lower captive
consumption
3. Blocks being made available based on competitive bidding, without restriction of
captive use, so that experienced players can come in
4. Shielding lenders from environmental issues
5. Greater focus on the mining sector by advisory institutions
6. Better coordination amongst agencies for providing vital connection infrastructure
Mining in general while increasing employment and
economic activity in the country, can create
environmental damage and undermine other
socioeconomic development opportunities of local
communities. Various attempts to redress these
impacts have so far been piecemeal and ad hoc with
little research or consultation with the affected
groups, thus resulting in growing disaffection
amongst the community. There is an immediate need
for focusing on sustainable development of the
industry.
Increased and long term damages sustained as a result of this increase has already
resulted and severely compromised the lives of the local communities and is set to
manifest into long term damages. Unorganized mining is the characteristic of certain
mining areas. In the recent past, mining companies have emerged as significant defaulters
on issues such as provision of safe working environment, labor health and safety and
human rights.
Many states have demonstrated improved administrative practices through royalty sharing
arrangements to work towards local area improvement and improving the relationship
between area improvement and mining. This is done by allowing a certain percentage of
the royalties collected by the state to move back to the source district.
The sustainable development framework of the mining sector rests on the following eight
components:
1) Incorporating environmental and social sensitivities in decisions on leases: This
principle integrates sustainable development concepts at the earliest phase of the mining
life cycle. The underlying philosophy of the principle is to categorize mineral bearing areas
4.3 Sustainable Development
22 Future of Coal – A Strategic Energy Resource
Source: Womens Mining Coalition
based on an environmental and social analysis taking a risk based approach. At the bidding
stage the categorization of lease areas into High and Low risk will allow the investors to
take business decisions with the knowledge that the cost and uncertainties of getting
approvals as well as operations in high risk areas will be significantly higher than the low
risk areas. It will also allow regulators to put additional commitments at an early stage for
environmental and social performance.
2) Strategic assessment in key mining regions: Understanding that mining activities
occur in clusters which have impacts at a regional level, a strategic assessment of regional
and cumulative impacts and development of a Regional Mineral Development Plan based
on an assessment of the regional "capacity" needs to be carried out at periodic intervals is
important. Creating an institutional structure to own and implement such plans in key
mining regions is critical and taking critical decisions on mining, new leases, allocation of
resources, and even possible moratorium on mining need to be taken up to ensure more
sustainable planning and development in such regions.
3) Managing impacts at the mine level through sound management systems: The key
elements of this principle are impact assessment of key environmental, social, health and
safety issues, and development of management frameworks and systems at the mine level
and continual improvement of the same on the basis of international standards on a self
driven basis. An important component is disclosing performance on environmental and
social parameters to external stakeholders at every stage of the project lifecycle.
4) Addressing land resettlement and other social impacts: This principled and
comprehensive assessment of social impacts and displacement of mining projects at the
household, community and mining region level, and management commitment to address
those impacts through mitigation measures and management plans.
5) Community engagement, benefit sharing and contribution to socio-economic
development: This principle seeks commitment to regular engagement with the local
community as well as sharing of project benefits with the affected families. It is rooted in
the principle of sharing profits with the affected communities already provisioned for in the
draft MMDR Act awaiting approval. It dovetails the social impact management of project
operations with the initiatives being undertaken and looks at an integrated approach to
mitigate impacts and improve local livelihoods and living conditions in the neighborhood
areas and communities.
6) Mine closure and post closure mining operations must prepare, manage and
progressively work on a process for eventual mine closure. This process must cover all
relevant aspects and impacts of closure in an integrated and multidisciplinary way. This
must be an auditable document and include a fully scoped and accurate estimate of
planned cost of closure to the company. The cost estimates must be adequately
provisioned to cover national, regional and local legal and regulatory requirements for
closure; and must also include the cost of servicing all agreements/commitments made
with stakeholders towards post-closure use.
Future of Coal – A Strategic Energy Resource23
7) Ethical functioning and responsible business practices: This principle underlines the
need for ethical business practices and a strong sense of corporate responsibility among
mining companies. It recommends companies to go beyond legal compliance and do their
bit to ensure the sustainability of their business as well as the local communities.
8) Assurance and Reporting: This principle seeks mining sector stakeholders to assess
their performance against this SDF and demonstrate continual improvement on this
performance over the life of the project. It requires this performance to be reported in a
structured manner in a Sustainable Development Report to be disclosed in the public
domain as well as to regulatory agencies which is to be considered during approval
processes. Implementation of the above framework is expected to lower the conflicts
arising out of environmental and social concerns in mining areas. Moreover such a
framework is expected to reduce delays emerging in the long run, contribute towards
developing a regional mining development fund for selected mining areas and addressing
key regional and cumulative impacts of mining through coordinated and collective action.
Given the diverse and difficult nature of the challenges faced by the Indian Coal sector,
there cannot be a single ‘silver bullet’ solution to them and a comprehensive approach is
necessary to address them. Reforming the sector requires action on many fronts,
especially from the private sector and such reforms are unlikely to be easy given the
entrenched nature of the problems and the associated vested interests. However, India has
no choice but to initiate these steps as it would have to significantly depend on Coal for the
short and medium term energy needs.
For long term sustainability, a cohesive and synergetic structure focused on developing an
environmentally benign mineral industry is vital to achieve economies to scale and expand
mineral exploration and production in the economy. This structure should bring together
various stakeholders in the value chain and adopt measures that are conducive to attracting
investments.
The Social Equity Model follows an integrated approach to development involving the
private developer, community, NGO’s, Governmental organizations, Financier and
Knowledge Bank in formation of SPVs during exploration or mining processes. The model is
based on a cooperative approach to development. Such partnerships provide a platform for
fruitful collaborative partnerships, and also create a strong knowledge base that pushes
sustained development and ensures social equity in the growth strategies. Partnerships
involving Govt./Pvt Sector/ NGOs can assist in giving a larger/ global perspective to local
problems
4.4 The Social Equity Model
24 Future of Coal – A Strategic Energy Resource
This social equity approach aims to holistically include the local community as a partner,
and is an enabler of development linkages with the rural and semi urban communities. With
inclusive development as an objective the model takes into account the objectives of all the
stakeholders involved in the project.
Under this model, a special purpose vehicle is formed with equity from a promoter, private
investors and social equity from the local community in the form of land allocation and local
support. Government agencies and NGOs provide the necessary support with respect to
fiscal concessions and facilitating the formation of synergetic partnerships between the
local communities and promoters of the project. The management of the project is by the
promoter and the involvement of the local community also ensures sustainability of the
project due to the creation of employment and added revenue for the community. This is a
self sustaining cooperative model of development where the local community involvement
is leading to creation of social equity.
Future of Coal – A Strategic Energy Resource25
Figure 13: The Social Equity Model
Source: YBL Analysis
The figure below gives the synergetic and transactional relationships between various
stakeholders in the process.
Eco System Approach
The model follows an eco system approach where sustainability of the entire eco system is
built upon smaller ecosystems which contributes to the synergetic alignment of the entire
chain. Various sub ecosystems and their inter linkages are explained below
The private player brings with him the much needed risk capital for developing resource
which along with efficiency in operation is expected to provide adequate return on
capital in terms of profitability and positive payback from investment. The Knowledge
Bank provides the private players, knowledge advisory in terms of various sustainable
development practice and good governance practice which promote and facilitate
responsible mining operations being carried out for the various stakeholders in the Eco
system.
The Government forms policies and regulations within which the mining company
operates. These policies form the broad framework of operation and adherence to the
same is required to carry out the mining activity by the SPV. The Knowledge Bank
through its policy focused research provides inputs with regards to various sustainable
best practice and good governance which can be adopted at the policy level to bring
about a change in the current mining activities enabling a comprehensive socio
economic development.
The Knowledge Bank using its Social equity approach to development brings
Community and NGO’s within the Value chain of development thereby ensuring the
sustenance of eco system. The knowledge bank through its cooperative model of
development provides inputs to NGOs and Communities too. Building on this
collaborative community model of development, the community provides inputs to the
Mining SPV in terms of land and labor in return for structured participation in
management and adoption of sustainable development practice for preservation of
heritage and culture.
Foreign investors play an instrumental role in bringing in capital and technical know- how
in the sector. This facilitates the adoption of worldwide best practices and technology
that are environmentally sustainable. The knowledge bank, through its policy focused
research can effectively advise the government on adopting policies that are globally
1. Knowledge Bank – Private Player – Mining SPV
2. Knowledge Bank – Government – Mining SPV
3. Knowledge Bank – NGO- Community – Mining SPV
4. Knowledge Bank – Foreign Investors – Government – Mining SPV
26 Future of Coal – A Strategic Energy Resource
competitive and attractive to foreign investors who bring along a gamut of benefits. The
knowledge bank could also act as a mediator by educating the foreign investors on the
country’s industry and directing efforts in the right direction.
Developmental Partnerships
• Multi Stakeholder response to local challenges as an effective tool for sustainability
• Capacity Building and cooperative structures 'enable' communities to manage and
solve their issues themselves
• Partnerships with Foreign Investors facilitate the inflow of environmentally and
socially sustainable technology
• Such partnerships provide a platform for fruitful collaborative partnerships, and also
create a strong knowledge base that pushes skill development and ensures social
equity in the growth strategies
• Partnerships with Govt./Pvt Sector/ NGOs assist in giving a larger/ global
perspective to local problems
• Policy Framework: Institutional innovation to consolidate structures that guide
communities and entrepreneurs
• An equal voice for all stakeholders
• ‘Real’ Ownership: Align aspirations and foster ownership/responsibility for common
purpose/goals
• Provide platforms, skills and opportunities for communication
Collaborative Community Models: Facilitating Inclusive Growth
Stakeholder alignment
Future of Coal – A Strategic Energy Resource27
2 Future of Coal – A Strategic Energy Resource
05 | 10 - Sustainable Development in Coal Mining
Point Roadmap to
1. Enhance Policy and Regulatory Framework in Coal Mining
India has long been known for its richness of minerals. It currently stands to have the
5th largest reserve of coal in the world. Despite the abundance of coal, India has not
been able to tap its innate potential. Current policies have not been successful in
attracting foreign investors which has created a considerable lag in technological
upgradations. There is therefore a strong need to adopt policies that help revive the
industry by making its operations more resourceful and sustainable in the long run.
Moreover, policies need to focus on promoting investments through modes of Public
Private Partnerships. The establishment of a coal regulator would be timely for inducing
competition, transparency and creating a level playing field.
30 Future of Coal – A Strategic Energy Resource
Figure 14: Sustainable Development in Coal Mining
Source: Womens Mining Coalition
EconomicSustainability
2. Incorporating environmental and social sensitivities in decisions on leases
3. Benefits sharing and Community engagement
4. Logistics Infrastructure Development
5. Strategic assessment in key mining regions
This principle integrates sustainable development concepts at the earliest phase of the
mining life cycle. The underlying philosophy of the principle is to categorize mineral
bearing areas based on an environmental and social analysis taking a risk based
approach. At the bidding stage the categorization of lease areas into High and Low risk
will allow the investors to take business decisions with the knowledge that the cost
and uncertainties of getting approvals as well as operations in high risk areas will be
significantly higher than the low risk areas. It will also allow regulators to put additional
commitments at an early stage for environmental and social performance.
This principle seeks commitment to regular engagement with the local community as
well as sharing of project benefits with the affected families. It is rooted in the principle
of sharing profits with the affected communities. This entails the social impact
management of project operations with the initiatives being undertaken, looking at an
integrated approach to mitigate impacts, and improve local livelihoods and living
conditions in the affected communities.
Create an institutional mechanism for planning and development of common
infrastructural facilities for use by all the block owners. A local area development
authority could be created with participation of block allocates, coal mining companies
and the respective state governments to develop comprehensive plans for
infrastructural facilities and requirements in each identified coalfields areas. The
importance of optimization of available logistic infrastructure through source
rationalization, investment in logistics infrastructure and development of end-to-end
logistics solution companies in PPP model, and harnessing the potential of alternate
modes of transport should be the thrust areas for the Government.
Understanding that mining activities occur in clusters which have impacts at a regional
level, a strategic assessment of regional and cumulative impacts and development of a
Regional Mineral Development Plan based on an assessment of the regional "capacity"
needs to be carried out at periodic intervals is important. Creating an institutional
structure to own and implement such plans in key mining regions is critical and taking
critical decisions on mining, new leases, allocation of resources, and even possible
moratorium on mining need to be taken up to ensure more sustainable planning and
development in such regions.
Future of Coal – A Strategic Energy Resource31
6. Encourage Private Sector Participation
7. Encourage Technological Innovations and Skill Development
8. Promote Environmentally, Social and Economically Sustainable Practices
The role of private sector in the Coal mining and development has been very limited,
largely due to the restriction on end use and open commercial sale of coal. Allowing
private participation either directly or by partnering Government companies could be
the possible solution for ramping up Coal production in the country and taking the
country towards self-sufficiency. Public-Private Partnerships (PPP) and Joint-Venture
models should be the possible routes for facilitating large private sector investments in
Coal mining sector. However it has to be implemented in its true spirit and must involve
ownership, to achieve the desired results of such a partnership
Technology is the key to higher production, productivity and safety. The country is
lagging behind in terms of technology and availability and use of high technology
equipment is still below potential. International best practices and bench marks,
particularly in underground mining technologies and Clean Coal Technologies etc have
to be adopted at a faster pace to ensure cost-effective Coal mining and energy security.
There has to impetus from policy makers and management of Coal companies for
adopting these practices and also for creating cost effective cost beneficiation
technologies. The industry also has a shortage of trained workforce comprising of
engineers, diploma holders and skilled/semi-skilled workers; a major deterrent in
enhancing workforce strength and efficiency. There is therefore a pressing need to
divert investments towards expanding the human capital pool to bolster the expected
growth in future.
With the outlook of mining evolving over time, greater emphasis is now being laid on
the sustainability aspect. Sustainable Mining now encompasses practices that are
financially viable; socially responsible; environmentally, technically and scientifically
sound; with a long term view of development. To ensure overall development and
inclusive growth, it has become imperative to adopt sustainable mining practices that
encourage community participation and augment rural income and livelihood.
Moreover, there is an urging need for the government to propose an economic model
that aligns stakeholders’ expectations with sustainable profit sharing ratios that include
local communities. Mining companies should also be responsible for augmenting
infrastructure and basic amenities in these regions.
32 Future of Coal – A Strategic Energy Resource
9. Geological Explorations to Uncover Proven Reserves
10. Speedy Clearances through Single Window Systems
Coal exploration is to be speeded up exponentially to ensure availability of more
explored coal blocks for mining by the private and public sector. Majority of the
reserves in ‘Inferred’ and ‘Indicated’ categories have to be proven by detailed
exploration and ensure such information is available at least 10 years in advance to
allow projectisation and mine development. To accomplish this goal, the existing
capacities of the exploration agencies have to be enhanced and global companies have
to be invited to strengthen drilling capacities as well as technical support system both
in terms of drilling equipments and manpower.
To expedite clearances a co-ordination committee at the Centre and State level should
be set up (Single window concept) with senior representation from the concerned
departments. To ensure a leaner, transparent and efficient approval process, there is
also a need to ensure Forest and environmental clearances in a time bound manner, by
reducing the number of levels and stages. Clearances once given should be valid so
long as there is no expansion or major modifications in the mine/washery; it should not
be required afresh merely because lease is being renewed. Also to ensure there is no
wide disparity in environmental performance of coalmines in the country, a system of
third party audit or the adoption of a ‘Green Rating System’ may be established to bring
out the best practices and establish benchmarks for those not doing so well to
improve.
Future of Coal – A Strategic Energy Resource33
YES BANK, India’s fourth largest private sector Bank, is the outcome of the professional &
entrepreneurial commitment, vision & strategy of its Founder Rana Kapoor and his top
management team, to establish a high quality, customer centric, service driven, private
Indian Bank catering to the Future Businesses of India.
YES BANK has adopted international best practices, the highest standards of service quality
and operational excellence, and offers comprehensive banking and financial solutions to all
its valued customers. YES BANK has a knowledge driven approach to banking, and a superior
customer experience for its retail, corporate and emerging corporate banking clients.
YES BANK is steadily evolving its organizational character as the Professionals’ Bank of India
with the uncompromising Vision of “Building the Best Quality Bank of the World in India by
2020!
Founded in 1925, Indian Chamber of Commerce (ICC) is the leading and only National
Chamber of Commerce operating from Kolkata, and one of the most pro-active and forward-
looking Chambers in the country today. Its membership spans some of the most prominent
and major industrial groups in India. ICC is the founder member of FICCI, the apex body of
business and industry in India. ICC’s forte is its ability to anticipate the needs of the future,
respond to challenges, and prepare the stakeholders in the economy to benefit from these
changes and opportunities. Set up by a group of pioneering industrialists led by Mr G D Birla,
the Indian Chamber of Commerce was closely associated with the Indian Freedom
Movement, as the first organised voice of indigenous Indian Industry. Several of the
distinguished industry leaders in India, such as Mr B M Birla, Sir Ardeshir Dalal, Sir Badridas
Goenka, Mr S P Jain, Lala Karam Chand Thapar, Mr Russi Mody, Mr Ashok Jain, Mr.Sanjiv
Goenka, have led the ICC as its President. Currently, Mr. Roopen Roy is leading the Chamber
as it's President.
ICC is the only Chamber from India to win the first prize in World Chambers Competition in
Quebec, Canada.
ICC’s North-East Initiative has gained a new momentum and dynamism over the last few
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economic potential of the North-East at national and international levels. Trade & Investment
shows on North-East in countries like Singapore, Thailand and Vietnam have created new
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through Trade & Business Delegation Exchanges, and large Investment Summits.
ICC also has a very strong focus upon Economic Research & Policy issues - it regularly
undertakes Macro-economic Surveys/Studies, prepares State Investment Climate Reports
and Sector Reports, provides necessary Policy Inputs & Budget Recommendations to
Governments at State & Central levels.
The Indian Chamber of Commerce headquartered in Kolkata, over the last few years has truly
emerged as a national Chamber of repute, with full-fledged offices in New Delhi, Guwahati,
Patna and Bhubaneshwar functioning efficiently, and building meaningful synergies among
Industry and Government by addressing strategic issues of national significance.
DELHI OFFICE
TelFax
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: +91-11-4610 1431 to 1439: +91-11-4610 1440 & 1441
GUWAHATI OFFICE
Tel :Fax :
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