Although the MMDR law will support iron ore output growth, the royalties included in the Act will limit the overall growth potential of the sector, Fitch Solutions said.
The government last month promulgated an ordinance for amendment in the MMDR Act 1957 and the CMSP (Coal Mines (Special Provisions) Act, 2015, a move aimed at enhancing the ease of doing business, among others.
India’s coal imports in November rose 8.6% from a year earlier to 21.83 million tonnes, government data showed, following three straight months of decline.
Imports of thermal coal, used mainly for electricity generation, rose 12.3% from a year ago to 17.65 million tonnes, whereas coking coal shipments to India fell 5% from a year earlier to 4.18 million tonnes, data from the Ministry of Coal showed.
India’s thermal coal imports fell from August to October, their longest sustained fall in over two years, due to a broader economic slowdown that stifled demand from industrial consumers.
The dozen state-owned major ports in the country have switched to renewable energy to meet their entire power requirements, making India the first nation to have all government-owned ports running on solar and wind energy.
Under a ‘green port’ initiative, the Shipping Ministry had directed all the major ports to install grid-connected and roof-top solar and wind power projects to facilitate day-to-day operations including supplying shore-power to visiting ships in an eco-friendly manner.
Iron ore miner NMDC plans to raise production by as much as 50%, potentially boosting supplies and alleviating concerns of shortages of the key raw material.
State-run NMDC Ltd. is targeting production of 48 million tons in the year starting April, and will surpass 32 million tons this year, Amitava Mukherjee, director of finance, said. The growth in supplies will come mainly from its mines in Chhattisgarh and includes 7 million tons of iron ore from the Donimalai mine in Karnataka state that is currently closed.
The ongoing crisis in the banking system and the non-banking financial companies (NBFCs) is impacting the growth of the renewable energy sector impeding credit flow for projects, according to chief executive officers (CEOs) and other senior executives of companies operating in the green energy space.
The government sold nearly 2.91% stake in Coal India (CIL) and raised more than 3,200 crore in a subdued stock market. Since April last year, the Centre has pared around 4.82% in the company, raising about 5,700 crore in this financial year.
Currently, the government’s stake stands at 66.14%. It has to reduce its holding by another 1.14% to bring down its stake to the minimum public holding limit of 35% in listed companies.