0. Overview on The Indian Cement Sector and its Changing Coal Requirements
By N.A. Viswanathan Secretary General CEMENT MANUFACTURERS’ ASSOCIATION
At the outset, I would like to thank the organiser for organising this important International Conference on Coal and giving us an opportunity to share the overview of the Indian Cement Industry and its problems on the coal front.
In my brief presentation I would like to touch upon the achievements of the Indian Cement Industry, its contribution to the economy and its major issues on the coal front adversely impacting its growth.

1. FROM MODERATE TO WORLD CLASS INDIAN CEMENT INDUSTRY
India in Globe
Second Largest Cement Producer in the World, after China.
State-of-Art Cement Technology.
Low Energy Consumption.
Produces Cement comparable to World Standards.
Green and Environment-Friendly Industry.
Contributes significantly to CO2 emission reduction and thereby taking care of issues concerning Global Warming.
Per Capita Cement Consumption at 202 kg is very low against World Average of 513 kg.
With the adoption of massive modernization and assimilation of State- of-Art Technology, Indian Cement Industry is not just 2nd largest producer in the World, but it is today having plants with world-class Energy efficiency and Environment-friendly (apart from having one of the lowest production cost of Cement in the World).
I am happy to say that Indian cement Industry’s initiatives and achievements have been acknowledged and appreciated world over, although there is still a lot of scope to improve further its benchmarks.
Industry’s Initiatives and Achievements acknowledged and appreciated world over
- although, a lot still remains to be done with the help and support from Government

2. BURGEONING GROWTH INDIAN CEMENT INDUSTRY
1982 – A ‘Watershed’ in the history of Indian Cement Industry when ‘Partial Decontrol’ was introduced culminated to Decontrol in 1989.
Drastically compressed time for adding additional 100 Mt. cement capacity mark to 11 and 3 years respectively from 83 years taken for the First.
Although the cement industry has been in existence since 1914, appreciable growth in the cement production has been witnessed only after the introduction of partial decontrol in 1982 culminating in total decontrol in With the implementation of ‘Liberalisation Policies of the Govt.’ in 1991 followed by Govt’s thrust for the Infrastructure Development in the country, the growth of the Cement Industry had been further accentuated. The exponential growth of the Industry can be gauged from the fact that for creating the first 100 million tonnes capacity, prior to partial decontrol era, Industry took 83 long years while for adding the second and third 100 million tonnes mark, the period had been substantially compressed to 11 years and less than 4 years respectively. Cement capacity which was 33 million tonnes in had reached over 350 million tonnes in Similarly, cement production had gone up from 23 million tonnes to 251 million tonnes for the same period.
India’s share in the world cement production is about 7%.
India Produces 7% of Global Cement Production.
Of late, subdued cement demand has significantly lowered capacity utilization – A major cause of concern.

3. GREEN AND ENVIRONMENT-FRIENDLY INDIAN CEMENT INDUSTRY
Adopts Latest Technologies to keep it globally competitive in respect of :
Production Cost (However, high taxation and import of inputs negate it).
Protection of Environment in and around cement plants.
Strives significantly for maintaining our Ecological balance being disturbed through Global Warming.
Takes notable initiatives and measures for Clean Development Mechanism through increased clinker substitution and Alternative Fuels use.
The Cement Industry which earlier was perceived as a polluting Industry, today has become the most environment-friendly and green Cement Industry by adopting Environment Friendly Technologies; using Alternate Fuel and Raw Material and implementing Waste Heat Recovery power projects, etc.
The Industry has also taken notable initiatives and measures for Clean Development Mechanism through clinker substitution and alternative fuels.
The Indian Cement Industry has been making concerted efforts to enhance its thermal substitution rate which is less than 1% at present to at least 15% by 2020, which would still be very low when compared with the world average of 50 – 60%.
Still a Lot of Scope for Further Improvement

4. TOWARDS TECHNOLOGY & ENERGY EFFICIENCY INDIAN CEMENT INDUSTRY
Proactive Cement Industry constantly improves Energy Consumption.
Some plants have become global benchmarks in energy consumption, next to Japan.
Year
1970
1980
1990
Post 2010
Kiln Capacity (Tonnes/Day)
600 – 1200
2400 – 3000
3300 – 6000
4500 – 12000
Heat Consumption (Kwh/Tonne Clinker)
900 – 1000
800 – 900
650 – 750
Power Consumption (Kwh/Tonne Cement)
99% Energy Efficient Dry Process plants.
It shows the Industry has progressively converted from Wet Process Technology to the modern Dry Process Technology. You will kindly observe that in 60s, 94% Cement Plants were having old Wet Process Technology but today 99% Plants in India are having most advanced Dry Process Technology.
This successful conversion was made possible by undertaking massive modernization programme by the Industry and use of large Kiln capacity. There has been a progressive reduction in energy consumption both in terms of Heat and Power.

5. NEW INITIATIVES FOR ENERGY EFFICIENCY INDIAN CEMENT INDUSTRY
Perform, Achieve and Trade (PAT) Scheme of
Alternate Fuel and Raw Material (AFR)
Waste Heat Recovery (WHR) through Co- generation
Cement Industry has already achieved remarkable strides in the field of energy efficiency. With the implementation of the PAT Scheme of the BEE, Govt. of India and also the increased usage of AFR and waste heat recovery through co-generation in the cement plants, the Cement Industry is hopeful to further improve its energy efficiency.
However, there are practical problems being experienced by the Cement Industry concerning Technical, Regulatory and Policy related which are hampering the efforts of the industry towards energy improvement.
The Industry has been submitting suggestions, along with possible solutions to the Govt. in addressing industry’s major concerns.
@ Outlined under the National Action Plan on Climate Change released by Hon’ble Prime Minister of India in June 2008.
Energy consumption likely to be reduced further by 4.8% in first cycle of PAT Scheme, ending in 2015

6. APPRECIABLE REDUCTION IN CARBON FOOTPRINT INDIAN CEMENT INDUSTRY
By adopting best available Technologies and Environmental practices in the plants viz. Waste Heat Recovery Power Projects and Uses of Alternate Fuels - Pet coke, Lignite, Husk, Municipal Wastes, Biomass, etc.
CO2 emission level reduced from 1.12 tonne of per tonne cement produced in 1996 to tonne CO2 emission for one tonne of cement in 2010.
Is on the top in Certified Emission Reductions Projects registered with the Clean Development Mechanism (CDM) of Kyoto Protocol.
Indian roadmap now outlines a low-carbon growth pathway for the Indian cement industry that could lead to carbon intensity reductions of 45 per cent by
These reductions could come from increased clinker substitution and alternative fuel use; Improvements to energy efficiency, and the development and widespread implementation of newer technologies.
Appreciable reduction in Carbon Footprint in Indian Cement Industry, it is evidenced by the fact that CO2 emission level reduced from tonne per tonne of cement produced in 1996 to tonne of CO2 for one tonne of cement in 2010.

7. CONSCIOUS OF ENVIRONMENTAL HEALTH AND SAFETY INDIAN CEMENT INDUSTRY
Eco-friendly use of hazardous industrial wastes by focusing and producing Green Cement.
Cement Industry’s initiative and investment to the tune of more than Rs crores for effectively utilizing the industrial waste like fly ash, which otherwise poses a nuisance and health hazard, has helped the thermal power plants in overcoming the menace of fly ash.
Here you will see that there has been a paradigm shift in the production pattern from OPC to PPC. The OPC production which used to be 70% of the production in the 90s has come down to about 31% now and the production of Blended Cement has gradually increased from 29% to around 68%. In addition to OPC and PPC, the Industry has been manufacturing other varieties of cement including Special Cement like Oil-Well on demand, which is currently 1% of the production. Industry also has the capacity and capability to produce more such cement if there is demand.
The Industry started utilising the fly ash in the overall interest of the power houses, in particular and the country in general,
However, Power Plants, which had been earlier supplying fly ash to the cement industry free of cost, have for the last couple of years, as per the Order of the Ministry of Environment and Forests, started charging for fly ash from November 2009, which has severely impacted the production cost of cement. This has also seriously threatened the fly ash recycling potential in the country.
Consumes around 27% of Fly Ash generated from Thermal Power Plants.
Consumes almost 100% Slag generated by Steel Plants.

8. TAKES MEASURES FOR ENVIRONMENT PROTECTION BEYOND ITS SURROUNDINGS INDIAN CEMENT INDUSTRY
Promotes Environment-Friendly Cement Concrete Roads and White Topping in place of Bitumen Roads, in which significant emission of particulate matter, sulphur dioxide are emitted through Hot-Mix plants while preparing bitumen mixes at construction sites.
Bitumen Road
Cement Road
Prolongs life of quarries and mines as Cement Roads consume less aggregates.
Protects ambient temperature from increasing due to reduced absorption of heat .
The Indian Cement Industry has not only been taking steps to protect the environment in and around the cement plants but cement units are also taking measures to protect the environment beyond their surroundings.
As can be seen from the slide above, the industry has been promoting cement concrete roads because they are not only environment friendly but also contribute significantly in the development of the economy.
The picture above shows clearly the amount of sulphur-di-oxide emitted through hot mix plants while preparing bitumen mixes at construction sites and the clean and clear environment at the construction site of concrete roads.
Utilizes fly ash upto 35%, disposal of which is a nuisance and health hazard.
Conserves 10% electricity used for street light
Conserves 14% Diesel and Petrol for Trucks plying on Cement Concrete Roads.

9. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES INDIAN CEMENT INDUSTRY
Developed green belts around cement plants through social forestry
Quarried mines converted into water bodies, reservoirs, etc.
Provide clean environment, health care and education facilities to workers and surrounding populace.
Adopted more than 700 neighbourhood villages surrounding plants.
Basic education, Primary Healthcare, Water supply ensured.
225 Primary and Secondary Schools established.
25 Colleges financed.
This Slide gives an idea of the initiatives and measures that have been taken by the cement companies towards their Corporate Social Responsibilities.
Cement Industry has Developed green belts through forestry around their plants, about 25 million Trees have already been planted in last decade that serve as natural Carbon Sink by removing Carbon dioxide from the atmosphere;
Has provided health care and education facilities to workers and surrounding populace;
Created More than 60 Reservoirs in Abandoned Quarries, Desert Regions and Arid Plains;
Quarried mines have been converted into water bodies, reservoirs, lakes, etc. Steps for Water harvesting have also been taken.
In addition, more than 700 neighborhood villages of the plants have been adopted for Basic education, Primary Healthcare, Water supply etc. 225 Primary and Secondary Schools have been established and 25 Colleges financed.
Water Conservation

10. CLEAN ENVIRONMENT AND SOCIAL COMMITMENT INDIAN CEMENT INDUSTRY
Mined out areas converted into lakes by cement plants. SIBERIAN Birds certify Our eco-friendliness
Greenery Around Cement Plant
A few pictures depicting the work undertaken by the cement industry as a part of its CSR activities
Thick rows of trees at a cement plant’s perimeter Bulwark against GHG
Rain water harvesting in Limestone Mining pits

11. TODAY FOCUSING ONLY ON COAL SCENARIO
MAJOR CONCERNS
Updation of Database a casualty
Logistics, Despatches, etc. plans severely impacted after CCI’s Order of 20th June 2012
Dropping Capacity Utilisation (from 90% to 70% now) – Sluggish Demand
Coal Conundrum
Increasing Input Costs – Coal, Slag, Pet Coke, etc.
High Taxes and Levies
High interest rates making difficult for manufacturers to put up new capacities as well as construction industries to fund their new projects
With the deceleration in the economy, the demand of cement has sharply come down in the last 2/3 years, resulting in substantial drop in the capacity utilisation, because of sluggish demand.
The major concern of the cement industry today is to generate more cement demand through the Govt. support. It is estimated that there is about over 90 mn.t. excess capacity lying idle.
Apart from the tepid demand, the industry has been facing problems in respect of logistics support, acute shortage of input materials like coal, increasing cost of inputs, high levies and taxation, running into 60% of the ex-factory price.
Since today’s seminar is on coal, I am, therefore, focussing my presentation only on coal scenario and the problems related to the coal availability to the cement industry.
TODAY FOCUSING ONLY ON COAL SCENARIO

12. Status of Indian Coal India is the third largest coal producer.
It has fifth largest coal reserves
Total reserves billion tonnes (as on ) - Including Proved reserves up to the depth of 1200 m billion tonnes (as per Geological survey of India)
it is not able to meet domestic demand.
India is likely to become the second largest importer of coal next to Japan.
India
China
USA
India being 3rd largest coal producer. Coal production during China 3471 M.T. - USA 1016 M.T. and In India 558 M.T. The 4th and 5th largest coal producer is Australia 414 M.T. followed by Indonesia 376 M.T.
India has 5th largest reserves of coal in the world billion tonnes as all which includes proved reserves of billion tonnes as per Geological Survey of India (GSI) upto the depth of 1200 meters but it is not able to meet domestic demand.
India is likely to become the second largest importer of coal next to Japan.
Indonesia is the largest coal exporting country followed by Australia, exported 309 M.T. and 284 M.T. of its production respectively.

13. Breakup of Coal Demand by the User Industries
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 2 – 3 decades. The overall Long Term demand of coal is closely linked to the performance of the end user sectors.
In India, the end user Sectors of coal mainly include Power utilities, Iron & Steel, & Cement. Other industries have insignificant impact on the Long Term Demand for coal.
The Power Sector is the largest coal consumer in the country more than 56% of the countries installed power generation capacity is fuelled by coal in Power Sector is also the biggest importer of Thermal Coal.
Power Utilities & Captive Power Consumers accounted for about 72% of the total coal demand in the country. The Steel & Sponge iron 7% & Cement Sector 5% respectively. The other consuming sectors Chemical, Textiles, State Agencies, Fertilizers & E-Auction has a share of about 16% of the total coal demand in
It is ironical, cement which is equally as important as power for growth of country’s economy gets only 1.75% of its 5% requirement of coal production

14. Domestic Coal Production and Demand
(Fig in MT)
CIL
379.46
403.74
431.26
431.32
435.84
452.0
615
SCCL
40.60
44.54
50.43
51.33
52.21
56.00
57.00
Captive
21.17
29.87
35.03
34.60
36.24
32.00
100.00
Others
15.77
14.61
16.28
14.82
15.50
18.00
23.00
Total Production
457.00
492.76
533.00
532.07
539.79
558.00
795.00
Demand
504.29
549.03
582.25
624.78
649.87
772.84
980.50
Gap
47.29
56.27
49.25
92.71
110.08
198.44
185.55
India’s coal production was up by 3.2 percent in (FY13) to million tons, compared to mt in (FY12), according to provisional data released by Coal Controller’s Organisation.
In absolute terms, this showed an increase of nearly 18.2 M.T, of which CIL’s contribution was 16.2 M.T.
As per the 12th Plan document, the total production of coal by Coal India Limited has been projected to increase from million tons achieved by CIL in to 615 M.T. in
Mammoth mismatch – coal imports increasing significantly

15. Cement Sector - Third Largest Consumer of Coal /Fuel
Coal is used as the main fuel in the industry.
Coal is supplied to cement companies on the basis of Fuel Supply Agreement (FSA) between Coal Companies and Cement Companies, at a 35% higher price than the Regulated Sector (G6 to G17 – The grades preferred by Cement Industry) of power grade coal, consisting of Power, Fertilizer and Defence.
Coal availability to the industry dropped to 35% in from 75% in 2003.
The cement industry is the third largest consumer of Coal/Fuel in the country. Due to the high cost and inadequate availability of oil and gas, coal is used as the mainstay as fuel in the industry.
The cement industry constitutes around 5% of thermal coal demand in the country in terms of the FSA quantity allocated by the Ministry of coal which is 35 % of the Fuel requirement.
Coal is supplied to cement companies on the basis of Fuel Supply Agreement (FSA), between Coal Companies and Cement Companies, at a 35% higher price than the Regulated Sector (G6 to G17) of power grade coal, consisting of Power, Fertilizer and Defence.

16. Steep Declining Trends in Coal Supply to Cement Industry
Shrinking Coal Availability
Source: CMA Data of Member Companies
Coal supply through linkages steeply dropped to 35% in FY13, compared to 75% in FY03.
No coal linkage to new capacities/expansions.
Open market./import of coal enhances its cost by 60 to 80%.
Availability of coal from the two major Government-owned undertakings CIL and SCCL are Gradually declining. No new linkages for cement kilns and its Captive Power Plants has been granted since 2007.
The last Linkages were granted by Ministry of Coal, on SECL in respect of Running plants, Brownfield plants and Greenfield plants on the introduction of NCDP in October’2007.
Even the Linkages/Letter of Assurances have still not fructified into Fuel Supply Agreements (FSAs), notwithstanding the fulfilment of all Milestones.
This is not in line with the decision taken for the Power Utilities for which specific instructions are issued by MOC for signing FSA.
The percentage supply of linked coal has been gradually declining year after year.
Therefore, to meet the industry’s growing requirement of coal/fuel, the cement industry has been procuring the same from other sources i.e. through coal imports, e-auction/market purchase, pet coke usage, lignite and other alternate fuels.
This not only increases the input cost but also creates an environment of uncertainty in the matter of coal/fuel procurement.
Usage of AFR and WHR by cement industry become inevitable to meet Growing Cement Production Target

17. Procurement of Fuel by Members of CMA
Fig. in MT
Year
Linked Coal
Imported coal
Coal procured from open market
Pet coke
Lignite
&
Other
Fuel
Total Fuel
procurement
% of linked coal against Total
13.34
3.66
0.77
1.04
0.05
17.87 75
13.35
3.18
1.03
1.41
0.11
19.08 70
14.84
3.63
1.27
1.87
0.76
22.37 66
14.81
3.40
1.55
2.16
0.82
22.74 65
14.43
4.96
2.94
2.09
0.83
25.25 57
14.56
6.08
5.00
2.27
0.93
28.84 50
14.29
6.97
6.17
2.41
0.36
30.20 47
10.79
6.95
4.36
3.92
0.23
26.25 41
11.90
8.48
4.92
10.45
9.39
4.51
4.70
0.75
29.80 35
10.38
9.27
3.93
5.18
1.06
29.82
Coal receipt against FSA/Linkage by Member Units of CMA was M.T. in as against MT in
The supply of coal through linkage which was as high as 75% of total procurement in , has now come down to 35 % in
This reduction in percentage supply has taken place due to Change in Coal Distribution Policy due to which only 75% of the normative requirement of Cement Industry is to be met through FSA/linkage instead of 80% earlier.
Delay in signing of FSA between LOA Holders (Cement Companies) and Coal companies, and
Not holding Standing Linkage Committee (LT) meeting since November 2007 for sanctioning of linkage to New/Enhanced Cement Capacities.
It will be observed that during the year , while the coal supply through FSA/Linkage by Member units was only mn.t, whereas, the total fuel consumption of the Member units was mn.t, leaving a gap of M.T. between the actual requirement and linked coal supply.

18. ESTIMATED CEMENT DEMAND PROJECTIONS FOR THE 12TH PLAN BY WORKING GROUP OF PLANNING COMMISSION
(Mn.t.)
High Scenario
Year
Cement
Capacity
Production
336.1
246.7
349.6
272.0
374.9
299.9
405.1
332.1
440.6
367.8
479.3
407.4
811.4
710.0
1379.9
1237.4
It shows the Cement Demand Projections of the Working Group on Cement Industry for XIIth Plan. The GDP growth in XIIth Plan has been estimated at 9% by the Group whereas the growth of Cement Production has been averaged at about 10.75%.
You will kindly see that by 2017 Cement Demand will be over 407 million tonnes and to achieve this the capacity target has been fixed at 479 million tonnes, which means Industry has to add about 160 million tonnes of cement production and about 145 million tonnes of cement capacity, excluding the excess capacity of about 90 million tonnes at present in the next Five Years.

19. COAL REQUIREMENT TO MEET CEMENT DEMAND PROJECTIONS
(Mn.t.)
In this Slide, the projections of cement demand and coal requirement of the Indian Cement Industry, as worked out by the Working Group on Cement Industry in its Report submitted to the Planning Commission for XII Five Year Plan, are highlighted.
You will kindly observe that the coal requirement of the Industry will gradually increase to 69.3 million tonnes for cement production and 26.6 million tonnes for Captive Power Plants (CPPs) taking the total requirement of coal of the Industry to 96 million tonnes by the terminal year of the XII Plan i.e. March 2017.
As I mentioned earlier, Indian Cement Industry has taken a number of initiatives and also assimilated state-of-the-art technologies to improve the energy (coal) efficiency. As a result, the coal requirement which used to be 25% in 1990s has come down significantly to 17% now. The Planning Commission has made their projections on the basis of 17% requirement of the Industry.
I would like to inform this august gathering that the Indian Cement Industry, despite significantly reducing its coal requirement by making huge investments, is not even getting 6% of its requirement of 17%.
Had there been no initiative success in efficiency improvement and investment from the Cement Industry on this front, the supply of coal satisfaction to the Industry would have been much lower than even 6%.
Source: Working Group Report for XII Plan
* 17% Coal is consumed to produce one tonne of cement (Progressively reduced from 25% in 1990s because of efficiency improvement)

20. Coal - Key Issues
Substantial new capacities have been waiting for sanction of Long-Term Linkages for more than six years. This needs to be expedited.
CIL has switched over from Useful Heat Value (UHV) to Gross Calorific Value (GCV). Wide variations between declared GCV to actual GCV in cement plants causing huge financial losses to coal consumers.
Facility of joint sampling at both loading and unloading points being extended to the power utilities may also be extended to the cement sector without embargo of 4 lakh tones subject to their consent.
Further, substantial new capacities are coming up by way of addition/expansion and Greenfield installations. These plants have applied for sanction of Long-Term Linkages and have been waiting for the same for more than six years. This needs to be expedited.
CIL has switched over from Useful Heat Value (UHV) to Gross Calorific Value (GCV). There are vide variations in the declared GCV to actual GCV in the cement plants. This is causing huge financial losses to the coal consumers.
Facility of joint sampling at both loading and unloading point being extended to the power utilities may also be extended to the cement sector without embargo of 4 lakh tones subject to their consent.

21. Coal - Key Issues
Contd...
As per The New Coal Distribution Policy (NCDP) FSAs have been signed only for 75% of normative requirement, thus there is ab-initio 25% less programmed for each unit.
Threshold for penalty for short supply being 60% only, actual supplies could come to around 45% of normative requirement.
Substantial cement production capacities have been added during the last few years, but the FSAs are yet to be signed for these capacities. Matter is pending with Coal Cos and MOC.
As per The New Coal Distribution Policy (NCDP) FSAs have been signed only for 75% of normative requirement, thus there is ab-initio 25% less programmed for each unit.
Further, the threshold for penalty for short supply being 60% only, actual supplies could come to around 45% of normative requirement.
Substantial cement production capacities have been added during the last few years, but the FSAs are yet to be signed for these capacities. The matter is pending with Coal Cos and MOC.

22. Coal - Key Issues
Contd...
Under E auction any entity (irrespective of actual user, trader etc) can participate. It is experienced that the traders are able to get substantial quantities of coal under E auction which is then sold to actual consumers.
This unnecessarily increases cost of coal for actual consumers.
Only actual consumers be allowed to participate under E-auction with some mechanism for monitoring which may include self declaration & stringent action on diversion of coal etc.
Coal companies are deducting FSA quantity (deemed supply) based on fixed weight per wagon(66MTX59 Boxes) whereas actual loading is up to 5%to 7% lower.
This results into loss of linkage quantity.
Under E auction any entity (irrespective of actual user, trader etc) can participate. It is experienced that the traders are able to get substantial quantities of coal under E auction which is then sold to actual consumers. This unnecessarily increases cost of coal for actual consumers. It is desired that only actual consumers are allowed to participate under E auction with some mechanism for monitoring which may include self declaration & stringent action on diversion of coal etc.
Coal companies are deducting FSA quantity (deemed supply) based on fixed weight per wagon(66MTX59 Boxes) whereas actual loading is up to 5%to 7% lower. This results into loss of linkage quantity. FSA quantity supplied is to be considered based on actual loading & shortfall be supplied at the end of the year by allotting rake or by road if quantity is less than a rake.
FSA quantity supplied is to be considered based on actual loading & shortfall be supplied at the end of the year by allotting rake or by road if quantity is less than a rake.

23. Coal - Key Issues
Contd...
Joint inspection for re-verification of the calibration of the rail/road weighbridges be undertaken at a fixed interval with prior notification to the consumers.
Weighbridges of C.I.L. or railway are not always kept in calibrated condition, erratic weights are part of the deal.
Railways are charging freight on the basis of declared carrying capacity of wagons (which has been periodically increased in last few years), whereas actual quantity loaded is lesser than carrying capacity declared.
Joint inspection for re-verification of the calibration of the rail/road weighbridges be undertaken at a fixed interval with prior notification to the consumers. Weighbridges of C.I.L. or railway are not always kept in calibrated condition, erratic weights are part of the deal.
Railway is charging freight on the basis of declared carrying capacity of wagons (which has been periodically increased in last few years), whereas actual quantity loaded is lesser than carrying capacity declared. Railway / Coal Companies should build the required infrastructure for weigh-ment of coal & freight charged based on actual quantity loaded. Charge freight for 66 M.T./Box - whereas Qty. possible to load – 63 M.T. Consumer has to pay idle freight of 3 M.T.
Railways to Charge freight for 66 M.T./Box - whereas Qty. possible to load – 63 M.T. Consumer has to pay idle freight of 3 M.T.

24. Coal - Key Issues
Contd...
Steep Penalty on  overloading of coal by Rail is charged from consumers despite their not having any role in the loading of coal which is done by coal companies & Railways.
Penalties are worked out based on in motion weigh bridge of Railways which do not measure correct quantity of coal loaded in the wagons.
During monsoon season, weight of coal get increased due to rains in transit with higher moisture over which cement plants have no control.
Penalty on  overloading of coal by rail movement on the coal consumers is charged, whereas, they do not have any role in the loading of coal which is done by coal companies & Railways. Moreover the penalties are worked out based on “in motion weigh bridge” of Railways which do not measure correct quantity of coal loaded in the wagons.
Also during monsoon season the weight of coal may increase due to rains in transit with higher moisture over which cement plants have no control.
Need to eliminate this penalty. If coal company loads beyond 68 M.T. – there is a penal 3 times normal freight. Consumer has no role in loading but ends up paying penal freight.
Joint inspection for re-verification of the calibration of the rail/road weighbridges be undertaken at a fixed interval with prior notification to the consumers.
Weighbridges of C.I.L. or Railway are not always kept in calibrated condition, erratic weights are part of the deal.
Need to eliminate this penalty. Joint inspection for re-verification of the calibration of the rail/road weighbridges be undertaken at a fixed interval with prior notification to the consumers.

25. Coal - Key Issues
Contd...
Cement Sector is already paying 35% higher price for coal compared to the regulated coal price of the power grade coal falling between G6 to G17 grades.
This compulsory imposition of 25% of higher grade of coal falling between G1 to G5 together with the coal produced from the ‘Cost plus Mines’ whose price is much higher than the notified price of coal as pre condition for signing of FSA should be dispensed with.
Cement Sector is already paying 35% higher price for coal compared to the regulated coal price of the power grade coal falling between G6 to G17 grades.
This compulsory imposition of 25% of higher grade of coal falling between G1 to G5 together with the coal produced from the ‘Cost plus Mines’ whose price is much higher than the notified price of coal as pre condition for signing of FSA should be dispensed with.

26. ABOUT CEMENT MANUFACTURERS’ ASSOCIATION (CMA)
Provides a link between the Industry and Govt. and also serves the cement industry and its consumers.
Plays a pivotal role in formulation of Government policies for cement industry through continuous dialogues and interactions.
Apprises industry of latest Technological Developments and Cutting Edge Technologies.
Educates on rational use of cement including choice of the right type of Cements for various applications.
Creates awareness on the industry’s efforts on Quality Assurance, Environmental improvements, Consumer protection and other related issues.

27. Thank you