Coal Dealers in Andhra Pradesh
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Coal is an important source of energy for India and is critical for our energy security. It accounts for around 44% of our primary energy needs and powers around 75% of our entire electricity generation. Coal is so important that despite concerns around global warming, our government is refusing to let the coal industry die without a credible & feasible long-term phase out plan. In fact, the government of India has communicated even to the United Nations that coal will remain a steadfast pillar supporting the Indian economy for the coming decades.
All About Andhra Pradesh
Andhra Pradesh’s economy is one of the fastest growing in India, with growth outpacing that of the rest of the country in recent years. The GSDP for the year 2018-19 (Advance Estimates) is anticipated to be ₹850,000 crores, up from ₹490,134 crores in 2015-16 (First Revised Estimates), representing an increase of 11.61 percent. At current rates, per capita income climbed to ₹122,376 from ₹108,163 in 2015-16, a 13.14 percent rise.
Agriculture, which employs 62 percent of the people directly and indirectly, is the mainstay of the economy. The World Bank has named the state the best in the country for ease of doing business.
At current prices, the state ranked seventh in GSDP in 2014–15, with ₹5,200.3 billion. It increased by 12.03 percent over the previous fiscal year’s ₹4,641.84 billion. While the state’s GSDP for 2014–15 was ₹2,645.21 billion at constant prices, compared to ₹2,467.24 billion in 2013–14.
Andhra Pradesh’s Gross State Domestic Product (GSDP) at constant prices was 2,359.3 billion dollars in 2012–13, while the Gross State Domestic Product at current prices was 4,193.91 billion dollars. The state’s per capita income climbed by 6.26 percent from ₹25,959 in 2004–05 to ₹42,186 in 2005–06. (2012-13). The per capita income statistic provides a more accurate picture of the people’s level of living. In terms of GDP per capita, the state is placed eighth in 2019-20, with ₹1,69,519 at current prices. It increased by 11.17 percent over the previous fiscal year’s ₹1,51,173 figure.
Agriculture has long been the state’s major source of revenue and occupation, with 60 percent of the people working in agriculture or associated sectors. Rice is the state’s main food crop and staple food. Sugarcane, cotton, mango, tobacco, maize, legumes, and other essential crops are also grown. The Godavari, Krishna, Penna, and Tungabhadra are four prominent Indian rivers that run through the state, providing irrigation. Sunflower and peanuts, which are used to make vegetable oil, have recently acquired popularity. The Godavari River Basin Irrigation Projects and the Nagarjuna Sagar Dam are two multi-state irrigation projects in the works. In the 1970s, Andhra Pradesh was one of the few states in the country to participate in the Green Revolution in rice growing. At constant prices, the state’s agricultural income was ₹54.599 billion in 2012–13.
The principal vocations of coastal areas include aquaculture, which includes the cultivation of fish, crustaceans, mollusks, shrimp production, and so on. Andhra Pradesh is the major producer of shrimp in the country, accounting for 70% of total output. The state’s geographic position provides for both marine and inland fish farming. Aquaculture may be less affected by cyclones than agricultural output. As a result, farmers are becoming interested in this business. It has increased in value from ₹3.46 billion to ₹5.61 billion. The Waterbase Limited is a Nellore-based aquaculture company that promotes scientific shrimp farming. Vannamei shrimp is one of the most popular marine exports.
The industrial sector’s gross domestic product is ₹507.45 billion dollars. In addition, the state has begun to concentrate on the disciplines of information technology and biotechnology. Visakhapatnam is home to a number of significant heavy industries. The state still has work to do in the field of high-tech engineering. The primary industries of Andhra Pradesh include automobiles and auto components, spices, mining and minerals, textiles and apparels, IT sector, bulk medications and pharmaceuticals, horticulture, and poultry farming.
Coal Market in Andhra Pradesh
Curiously this huge market for Coal dealers in Andhra Pradesh is divided into smaller clusters, peppered across the country in different, usually independent pockets. These smaller markets are characterized by different properties/
Geographical Location:
Coal is a cheap commodity (usually) in which Coal Dealers in Andhra Pradesh deals in. The main part of the costing of coal, which forms up to 90% of the plant delivered cost to a consumer, constitutes of handling and transportation costs, thus making it very sensitive to its location of mining and final consumption. India is blessed with a very long coastline, 7500+ Km. This gives us a distinct advantage in terms of commerce and the ability to import and export via cheaper sea routes from global sources. Nearness to the ports has thus been a common characteristic of many coal trading hubs like Gandhidham in Gujarat or Vishakhapatnam in Andhra Pradesh.
Nearness to domestic mines, which are mostly located near the central, eastern and south eastern parts of the country have been a prominent characteristic of domestic trade hubs like Kuju mandi in Jharkhand or Raniganj in West Bengal. Some clusters are also seen near industrial consumption centres, where end user industry is concentrated like Mandi Gobindgarh in Punjab or Muzaffarnagar in Uttar Pradesh.
Origin of Coal: Coal from different origins is used in a variety of applications across the country. These uses vary with industry, its location and nearby supply sources or Coal dealers in Andhra Pradesh.
Indonesian coal: Indonesia is the world’s largest exporter of coal. With its landscape being criss-crossed by rivers, its location very near to the Indian sub-continent, it is relatively cheaper for us to source coal from here. Hence, it is no surprise that India is its second largest market. Indonesia is the largest source for our imported thermal coal needs. Being complimentary in its physical characteristics to our domestically available coal, Indonesian variety is often used for blending with ours. It is used in a very wide variety of industries across the country.
Coastal power plants have been built specifically to be able to utilize cheaper varieties to produce power. Steel rolling mills in Mandi Gobindgarh and Ludhiana in north and Telangana in south use it for heating applications. It is used by boilers in dyeing industry across Haryana, Uttar Pradesh and Rajasthan as a suitable, low sulphur, replacement to petcoke. Ceramics industry of Gujarat and captive power producers across the country have been using fuel from Indonesia to run their industries.
South African coal: South Africa is another large exporter of coal. India has been its largest market accounting for over 50% of its total exports. Grades of RB1 (6000 NAR), RB2 (5700 NAR), RB3 (5500 NAR) and 4800 NAR are exported from South Africa into India. This coal is used across India mainly by sponge iron makers and ferro alloy manufacturers. It is utilized for its high fixed carbon content almost as a chemical. It directly competes with domestic varieties in south and south-east India.
USA coal: US coal has the best net calorific value of any coal in the world. Originates from the regions of North Appalachian and Illinois Basin in US. It has been a favourite of the brick kiln owners across the entire northern belt of India. Cement manufacturers across the country have used US coal interchangeably with petcoke, a refinery by product, basis on pricing arbitrage, whenever available. Paper mills up north have also been occasional users, whenever domestic coal has been in shortage.
Australian coal: It is mostly used by the cement industry, which act as swing buyers. This has also been often used by power plants across the coastline, whenever there is an arbitrage opportunity.
Indian coal: Domestic coal is mainly mined by Coal India via its subsidiary companies and Singareni Collieries Coalfields Ltd. is mostly consumed within a short distance of the mine itself. These are the source for majority of the coal for industries across India. There are some smaller mines in Gujarat & Rajasthan also, which produce lignite, consumed by local industries like bricks, dyeing etc.
Coal Auctions
These auctions invite coal dealers in Andhra Pradesh and people from several industries to proportionately bid on mining coal blocks at the value at which they are sold and the amount that they would be willing to share with the government. Those bidders who are successful are granted leasing rights for a temporary period from the State Government. This allows them to mine a coal block for a limited period.
One interesting aspect of the recent 41 coal block bidding is the fact that it is the first time that private players are being allowed to mine coal for commercial purposes, without any restrictions. This implies that the mined coal could readily be sold in the open market, that was not the case until now. It is no longer necessary that the coal should be used purely for firms’ consumption.
Why Coal Bidding is important?
Despite India being the fourth largest country in terms of the number of coal reserves, a large number of industries still rely on imported coal that has a valuation close to 1.7 lakh crore. Especially, when the question comes of ‘Coking Coal’ (basic raw material for steel manufacturing), it is imported In large degrees as our domestic supplies are way too short to meet its demand. Coal dealers in Andhra Pradesh may help in procuring coal from such supplies.
Key Industries that has huge Coal Consumption
The coal consumption is maximum in the industries like power generation, steel manufacturing, liquid fuel, and cement manufacturing. The one that is used in power/electricity generation is known as Steam or Thermal Coal and Coking Coal is used for steel consumption. Besides these broad classifications, there are certain subcategories under which coal is divided like Bituminous Coal, Lignite, Hard Coke, Pet Coke, etc. These industries are the ideal customers for coal dealers in Andhra Pradesh.
