Coal Dealers in Hoshangabad

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There are primarily 5 Types of Coal Dealers in Hoshangabad

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

1. Miners of Coal in Hoshangabad

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 Hoshangabad

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 Hoshangabad

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 Hoshangabad

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 Hoshangabad

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 Hoshangabad

Hoshangabad, formally Narmadapuram, is a city and municipality in Madhya Pradesh, India. Both the Hoshangabad district and the Narmadapuram division have administrative headquarters here. It is located in central India on the Narmada River’s south bank. Hoshangabad is 76.7 kilometres from the state capital and Bhopal International Airport.

Narmadapur was the previous name for the city, which was named after the Narmada River. After Hoshang Shah Gori, the first monarch of the Malwa Sultanate, the name was changed to Hoshangabad. The Nerbudda (Narmada) Division of the Central Provinces and Berar, which became the state of Madhya Bharat (later Madhya Pradesh) following India’s independence in 1947, included the Hoshangabad district.

The city is known for its magnificent ghats along the Narmada river’s banks, with Sethani ghat being one of the most popular. On Narmada Jayanti, the city comes alive with vibrant events. During this year’s events, the CM announced that the town will be renamed. Hindu saints visit a Satsang Bhavan on the ghat on a regular basis, giving devotional teachings on the Ramcharitmanas and Gita. In March 2021, the city was renamed Narmadapuram.

The location of Narmadapuram is 22.75°N 77.72°E. It has a 278-metre average elevation (912 feet).

The Narmada River forms the district’s northern boundary. Raisen and Sehore districts are located across this. The district of Betul is located in the south, while the Harda district is located near the district’s western and south-western boundaries, and the districts of Narsingpur and Chhindwara are located near the district’s north-eastern and south-eastern boundaries, respectively.

The Hoshangabad district has a typical Central Indian climate. Due to its proximity to the Tropic of Cancer, the summers are hot and dry, with maximum temperatures ranging from 40 to 42 degrees Celsius (April – June). The monsoons then arrive, bringing with them a lot of rain. Winters are moderate and dry (November to February). The average elevation above sea level is 331 metres, and the annual rainfall is 134 centimetres.

The city is around 75 kilometres from the state capital, Bhopal, and is well linked by road and rail. Hoshangabad railway station has train connections to all of the state’s main cities. Itarsi, one of its tehsils, is connected to all major cities throughout the nation due to its location at a railway junction and on the principal line of Indian Railways, the Delhi-Bombay route. The district headquarters is 18 kilometres away. Pachmarhi, Madhya Pradesh’s lone hill station and an administrative block of Hoshangabad district, may be reached by train from Itarsi to Pipariya and then by bus, cab, or personal car to Pachmari, or by bus or cab straight from Hoshangabad or even from towns like Bhopal and Indore. Itarsi, the largest railway station in the Hoshangabad district, is connected to all major Indian cities by train. The closest airport is located in Bhopal (BHO).

On the banks of the Narmada River, Sethani Ghat is a significant city landmark. The confluence of the Tawa and Narmada rivers lies about 7 kilometres downstream.

Narmadapuram has a population of 117,988 people, with 61,716 men and 56,272 women, according to the 2011 Indian Census. It has a higher literacy rate than the national average of 87.01 percent, with male literacy at 91.79 percent and female literacy at 81.79 percent.

Tribal Department operates 960 primary schools, 207 middle schools, 69 senior secondary schools, and 9 schools. Pt. R L Sharma, a notable visionary, founded several educational institutions, notably the Narmada MahaVidhyalaya (NMV). There are eleven colleges in all, one of which is a polytechnic. Barkatullah University, Bhopal, is connected with all of the colleges. In the district, there is a Saksharta Program office that runs numerous literacy initiatives.

Scenario of Coal Industry in Hoshangabad

While looking for Coal Dealers in Hoshangabad, 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 Hoshangabad

Curiously this huge market for Coal dealers in Hoshangabad 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 Hoshangabad 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 Hoshangabad

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 Hoshangabad 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 Hoshangabad 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 Hoshangabad.