Coal Dealers in Bangalore

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If you are looking for Coal Dealers in Bangalore, we at Coalshastra.com can assist you with same. We are the online marketplace for buying and selling coal with thousands of coal dealers, buyers and sellers from Bangalore, selling different varieties of coal. You may finding thousands of listing by such Coal dealers in Bangalore on our platform. You may also place your listing specifying your coal requirements in terms of GAR, NAR, location of delivery, lifting days, etc.

There are primarily 5 Types of Coal Dealers in Bangalore

Taken in various permutations & combinations, these characteristics result in 5 distinct types of coal dealers in Bangalore which are as follows:

1. Miners of Coal in Bangalore

In India, Coal India Limited (CIL) is the major mining company. It operated via its numerous subsidiaries including:

1. 1. 1. Northern Coalfields Ltd, NCL
    2. Central Coalfields Ltd, CCL
    3. Eastern Coalfields Ltd, ECL
    4. North Eastern Coalfields Ltd, NECL
    5. South Eastern Coalfields Ltd, SECL
    6. Western Coalfields Ltd, WCL
    7. Mahanadi Coalfields Ltd, MCL

Apart from CIL, Singareni Collieries Coalfields Ltd, SCCL is also a state-owned coal mining company supplying to the Telangana and Andhra Pradesh markets. There are also captive mines allotted to various end user companies including power plants, cement plants, steel companies etc, which are now allowed to sell up to 50% of their production in open market.

2. Importer of Coal in Bangalore

These are large trading concerns with big banking limits and often have overseas presence as well. They import from other countries, taking advantage of pricing differentials. They are mostly present in major cities, and across various ports. They have operations teams to support the evacuation of coal from ports in a time bound manner.

3. Distributor of Coal in Bangalore

They are large traders with a monthly traded volume greater than 20 KT. They often buy from importers getting leverage of up to 10 times their immediate capital investment. Their major targets are mid-sized end consumers and traders.

4. Mid-Sized Trader or Dealers of Coal in Bangalore

They are companies with volumes below 20 KT/month. They usually deal with small traders and directly with end consumers. They provide various value adds including transportation facilities, short term credit facility and quality assurances.

5. Small Trader or Dealers of Coal in Bangalore

These are small companies, usually located near to the consumption centres. They cater to 10-20 SME’s at any given time and provide various services including transportation facilities, short term credit facility and quality assurances.

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 Bangalore

Bangalore is India’s third most populous city and fifth most populous urban agglomeration, with a population of over 8 million and a metropolitan population of approximately 11 million. Bangalore, located in southern India on the Deccan Plateau at a height of about 900 meters (3,000 feet), is noted for its nice temperature all year. It has the greatest elevation of any of India’s major cities.

The city’s history goes back to circa 890 CE, in a stone inscription unearthed at the Nageshwara Temple in Begur, Bangalore. The Begur inscription is written in Halegannada (ancient Kannada), mentions ‘Bengaluru Kalaga’ (battle of Bengaluru) (battle of Bengaluru). It was a watershed moment in Bangalore’s history since it was the first time the word ‘Bengaluru’ was mentioned. Kempé Gowd, a feudal king of the Vijayanagara Empire, built a mud fort in 1537 CE that is considered the basis of contemporary Bangalore and its oldest parts, or petes, which still exist today. The Mughals sold Bangalore to Chikkadevaraja Wodeyar (1673–1704), the then ruler of the Kingdom of Mysore, for three lakh rupees after the fall of the Vijayanagar empire in the 16th century.

Following victory in the Fourth Anglo-Mysore War (1799), the British East India Company seized the city and transferred administrative power to the Maharaja of Mysore. The ancient city grew up during the Maharaja of Mysore’s rule and became the capital of the Princely State of Mysore, which functioned as a nominally sovereign British Raj state. The British moved their cantonment from the old city to Bangalore in 1809, and a town developed up around it that was ruled as part of British India. Bangalore became the capital of Mysore State after India’s independence in 1947, and it remained so when the new Indian state of Karnataka was founded in 1956. Bangalore’s two urban settlements, city and cantonment, merged in 1949 to establish an united urban centre. Bengaluru, the city’s existing Kannada name, was designated the official name in 2006.

Bangalore is renowned as the “Silicon Valley of India” because it is India’s largest exporter of information technology (IT) (or “IT capital of India”). The city is home to a number of Indian technical companies. Bangalore has a diverse population and is India’s second-fastest-growing metropolitan city. Bangalore is either the fourth or fifth most productive metro region in India, according to recent estimations of its metro economy. Bangalore has 7,700 millionaires and 8 billionaires in 2017, with a combined fortune of $320 billion. Many educational and scientific organizations are located there. The city is home to a number of state-owned aerospace and defence companies. The Kannada film industry is also based in the city. According to the Ease of Living Index 2020, it is the most liveable Indian city with a population of over a million people.

Bangalore produces around 3,000 tonnes of solid garbage every day, of which 1,139 tonnes are collected and delivered to composting facilities like the Karnataka Composting Development Corporation. The municipality’s residual solid trash is deposited in open spaces or along roadsides outside of the city. Bangalore produced roughly 2,500 metric tonnes of solid trash in 2008, which climbed to 5000 metric tonnes in 2012, which is delivered to rubbish dumping sites from collecting units near Hesaraghatta Lake. Dust pollution, hazardous waste disposal, and disorganized, unscientific garbage retrievals are all major issues in the city. The Whitefield district, Bangalore’s IT powerhouse, is the city’s most polluted sector.

Scenario of Coal Industry in Bangalore

While looking for Coal Dealers in Bangalore, it is important to understand scenario of Coal Industry.

The Indian economy is so dependent on the black gold, that the government predicts a rise in its consumption by around 50% in the coming years. The government has been steadily making strides towards a more market-based pricing approach and a freer coal economy than what we see today. This is apparent by the various market friendly policy decisions taken by the Government of India.

Continuous auctions on rotational basis of coal mines for commercial mining with market linked pricing. More mines are continuously added to the existing pool and auctions are being continuously being held by the government to keep investor interest strong thus bringing in FDI to the space.
They’ve recently allowed captive mines to sell 50% of their production in open market. This has the potential to unlock more availability of the fuel to the industry thus increasing supply sources and hence deepening the market.
We’ve seen more and more coal being sold by Coal India Ltd via the auctions route. This has resulted in the company realising much better market linked prices, thus not having to subsidize energy to industries via long term, under-priced linkages, which sell their product on market linked prices, often making a killing.

Coal is a massive, 250 Bn $ sector in India. It is almost 10% of the Indian GDP. Our current consumption of almost a billion MT is met partially by domestic mines operated by government-controlled Coal India and rest almost 25% via imports from various countries across the globe. Our major importing partners include Indonesia, South Africa, USA, Australia, and Russia. Coal Dealers in Hoshangabad.

Last 5 Awarded Deals

Coal Type	Country	Port	Vessel/Mine
Thermal Coal	Indonesia	Navlakhi Port	4800 GAR +/- 100
Thermal Coal	Russia	Kandla Port	6100 NAR +/- 100
Thermal Coal	Indonesia	Navlakhi Port	4800 GAR +/- 100
Thermal Coal	Russia	Kandla Port	6100 NAR +/- 100
Thermal Coal	Indonesia	Kandla Port	5200 GAR +/- 100

Coal Market in Bangalore

Curiously this huge market for Coal dealers in Bangalore 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 Bangalore 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 Bangalore.

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 Bangalore 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 Bangalore 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 Bangalore.