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Coal, Crude oil, Natural Gas and Refinery Products. How these sectors performed in April 2020.

Coal, Crude oil, Natural Gas and Refinery Products. How these sectors performed in April 2020.

 

Coal:

The production of coal in April stood at 47 MT with a fall of 15.46% vs 4% in March 2020. The imports of coal decreased by 29.1% at ₹18.65 MT in April 2020, whereas in April 2019 it stood at 26.34 MT. The fall in the month of April 2020 is due to rise of the pandemic. The coal imports observed a fall of 6.18% in April 2020 over the preceding month. Out of the total imports of coal in April 2020, the volume of non-coking coal stood at 13.05 MT vs. 13.6 MT in the preceding month whereas the volume of cooking imports coal stood at 3.3 MT in April 2020. The total coal import for FY20 stood at 247.1 MT vs. 235.35 MT in FY19, with an increase of 5%. The key coal consumption sector is struggling with poor demand as a result of the lock down and the low capacity of plants. This resulted in a decline of demand for coal. In order to raise coal demand, the government has announced a range of steps such as an expanded availability of dry fuel for linkage consumers. It has also announced a number of relief measures, including the power sector, for CIL consumers.

 

Crude oil:

The production of crude oil in April 2020 stood at 2.5 MT vs. 2.7 MT in April 2019 with a fall of 6.35%. The production in April was 1.44% less than the monthly target. The target was 2,583.03 TMT whereas production was of 2,545.81 TMT. Crude oil production by ONGC stood at 1,681.77 TMT in April 2020 vs. 1,690.78 TMT in April 2019 with a fall of 0.53%. It was less by 0.65% to achieve the monthly target of 1,692.83 TMT in April 2020. Crude oil production by Oil India Limited stood at 248.25 TMT in April 2020 vs. 250.52 TMT in April 2019 with a fall of 6.39%. It was less by 0.9% to achieve the monthly target of 250.52 TMT in April 2020. Crude oil production by PSC Fields stood at 615.80 TMT in April 2020 vs. 639.68 TMT in April 2019 with a fall of 19.25%. It was less by 3.73% to achieve the monthly target of 639.68 TMT in April 2020.

 

Natural Gas:

The production of Natural gas in April 2020 stood at 2,161.33 MMSCM vs. 2,655.89 MMSCM in April 2019 with a fall of 10.88%. The production in April was 10.88% less than the monthly target, the target was 2,425.32 MMSCM. Natural gas production by ONGC stood at 1,725.69 MMSCM in April 2020 vs. 2,037.71 MMSCM in April 2019 with a fall of 15.31%. It was less by 12.73% to achieve the monthly target of 1,977.42 MMSCM in April 2020. Natural gas production by Oil India Limited stood at 202.05 MMSCM in April 2020 vs. 224.49 MMSCM in April 2019 with a fall of 9.9%. It was less by 4.64% to achieve the monthly target of 211.88 MMSCM in April 2020. Natural gas production by PSC Fields stood at 233.59 MMSCM in April 2020 vs. 393.70 MMSCM in April 2019 with a fall of 40.67%. It was less by 1.03% to achieve the monthly target of 236.02 MMSCM in April 2020.

 

Refinery Products:

The production of Refinery products in April 2020 stood at 14,745.18 MT vs. 2,20,703.06 MT in April 2019 with a fall of 28.78%. The production in April was 22.01% less than the monthly target, the target was 18907.44 TMT. Refinery Products production by CPSE Refineries stood at 7,103.76 TMT in April 2020 vs. 11,263.33 TMT in April 2019 with a fall of 36.93%. It was less by 28.91% to achieve the monthly target of 9,992.36 TMT in April 2020. Refinery Products production by JV Refineries stood at 925.13 TMT in April 2020 vs. 1,721.66 TMT in April 2019 with a fall of 46.26%. It was less by 22.71% to achieve the monthly target of 1197 TMT in April 2020. Refinery Products production by Private Refineries stood at 6,716.28 TMT in April 2020 vs. 7,718.08 TMT in April 2019 with a fall of 12.98%. It was less by 12.98% to achieve the monthly target of 7,718 TMT in April 2020.

 

 

Weekly market update (26th May – 29th May).

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Fourth tranche includes structural reforms in various sectors

Fourth tranche includes structural reforms in various sectors

In the 4th tranche of the economic package, Finance Minister Nirmala Sitharaman basically focuses on various sectors aiming towards growth stimulation and job creation. This time the utmost focus has been on sectors like coal, minerals, defence, aviation, power distribution, space and atomic energy sector. All the 4 tranches sums up the detailed guidelines and strategy of allocation of total fund as announced earlier by Prime Minister Narendra Modi. This pool of Rs 20 lakh crore package, that amounts to 10 percent of our GDP aims to help the nation survive the economic crisis that has risen due to cross country lockdowns laid to curtail spread of COVID-19.

 

Details of previous tranches:

The 1st tranche was announced on May 13, 2020 following the 2nd and 3rd tranche on May 14 and 15 respectively. The announcements in 3 tranches summed up to Rs 10.73 lakh crore. Similarly, 4th tranche has been aired on May 16, 2020 providing further details regarding the balance amount of fund dispersal strategy.

The 20 lakh crore package includes the amounts of earlier announcements made in March. Like the fund of Rs 1.7 lakh crore to take care of provision of free food grain and cash to poor for three months period, and monetary policy announced by RBI amounting to Rs 5.6 lakh crore. The First 3 tranches focuses on MSMEs, NBFCs, relief measures for poor migrant workers, street vendors, small businesses and farmers and agricultural sector.

 

Major announcements and reform in policies:

Investment upgradation:

States will be ranked on investment attractiveness to compete for new investments for industrial upgradation and infrastructure facilities and expansion of its reach. Major sectors in radar are Coal, Minerals, Defence, Airspace, Power distribution, Space and Atomic Energy. Let us consider them one by one.

 

Coal:

Government removes its monopoly over coal and announces commercial mining of this black diamond. Emphasizing on reduction of imports and increasing “Atma Nirbharta”. She also announces that government will spend Rs. 50,000 crores to develop this sector and looks forward to transparent and healthy competition welcoming private sector participation. Adding further, she tells around 50 blocks of coal will be auctioned.

 

Minerals:

Similarly, she announces that the government is looking forward to enhance private investment in this sector. Open and transparent auctions will be held to offer around 500 mining blocks. In order to boost competition in Aluminium industry, joint auction will be arranged for Bauxite and coal ores.

 

Defence Production:

With the aim of reducing dependence and becoming Atma Nirbhar, Foreign Direct Investment (FDI) in manufacturing under automatic route has been raised to 74% as compared to 49% previously. For domestic production of imported spares, budget provisioning has been done. These steps are taken to enhance autonomy, accountability and improvise efficiency in this sector.

 

Civil Aviation:

Limitations levied on usage of Indian Air Space will be uplifted, in order to make flying more efficient. This liberation will earn an annual benefit of around Rs. 1,000 crores for this sector. She also mentions vision of building world-class airports via Public Private Partnerships (PPP). Adding further, she said Government is taking efforts to make our country an international hub for repairs and maintenance and overhaul for aircrafts under authorization of the Airports Authority of India. Untill now 3 out of 6 airports have been authorized for the same on PPP basis.

 

Power:

In accordance with the newly laid tariff policies, Government opens doors for private players to enter into power distribution sector in the Union Territories. This is supposed to strengthen, stabilize and improvise efficiency in this sector.

 

Stimulating investments:

A revival scheme amounting to Rs 8,100 crores, has been launched to stimulate social infrastructure. This will boost private sector investment in social infrastructure.

 

Space:

Government welcomes private sector to become part of journey in space, launching rockets, satellite services and others. This will stimulate private participation in this sector. The finance minister also mentions that the government is trying to liberalize geo-spatial policy.

 

Atomic Energy:

Government wishes to see new startups in the nuclear sector. For stimulating this vision, government will set up incubation centres. These incubators are termed as Technology Development cum Incubation Centres. The welcoming the PPP model will help in establishing research reactors and making of medical isotopes.

Lastly, the above mentioned strategic plans and reforms are built with a vision of creating opportunities for businesses and at the same time generating employment and contributing to economic upswing.

 

 

Third tranche of economic package to support farmers along with governance reforms

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