INDUSTRY REPORT Mining Industry 2020 - Jan, 2020
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INDUSTRY REPORT
Mining Industry 2020
Jan, 2020
Knowledge partner
Complied for:
1
INDEX
Overview of Mining Industry in India …3
Overview of Mining Industry inTelangana & Andhra Pradesh …4
Why Telangana & Andhra Pradesh? …6
Demand Drivers
o Growth in Infrastructure sector ...8
o Power Sector …9
o Steel Sector …10
o Cement Sector …10
o Ceramic Sector …12
Initiatives and Policy Support by Government …13
Why Hyderabad as a Destination for Organizing
Expos on Mining Industry ...16
2
Overview of Mining Industry in India
1. The total value of mineral production (excluding atomic & fuel minerals) during
2017-18 has been estimated at INR 1,13,541 crore
2. Growing at CAGR of 15-20% Y-o-Y
3. India ranked 4th amongst the mineral producer countries; behind China, US, &
Russia
o India is the 3rd largest producer of coal. Coal production in the country stood
at 676.51 million tonnes in FY18 with 1530 operational mines
o Ranks 4th in iron ore production and expected to reach 210 million tonnes
o 3rd largest steel producer with 102. 34 million tonnes
o Combined Aluminum production of NALCO, BALCO, HINDALCO and Vedanta
increased 5.65% to 1.84 MT in FY18 from 1.74 MT in FY17
o 6th largest bauxite reserves around 650 million tonnes
State Wise break down Rajasthan
Odisha
17% 18% Chattisgarh
5%
Jharkhand
5% 15%
Gujarat
6%
AP
9% 9%
Telagana
8% 8%
MP
Assam
Total market share of
A.P + Telangana is Others
15-20%
Mining Industry in Telangana & Andhra Pradesh (refer as AP in report)
1. Telangana’s mining revenues have increased from INR 1,207 crore in 2010-11 to INR
3,700 crore in 2018-19, registering a 300% increase
2. Telangana has identified mining as one of the core sectors and through its industrial
policy has been attracting significant investments
3. Around 20% of India’s Coal deposits are found in Telangana
o State produces about 33 million tonnes of industrial minerals, 50 to 55 million tonnes
of coal and 54 million cubic meters of dimensional stones and building material
Sources: Ministry of mines 3
Mines And Geology, Telegana, Ministry of Mines A.P
Overview of Mining Industry in Telangana & Andhra
Pradesh (1/2)
3. Telangana plays key role in framing of National Mineral Policy
o It contributed ingenious and resourceful inputs to the Ministry of Mines,
Government of India, for framing the new National Mineral Policy
o Inputs on more transparency, effective regulation, encourage merger and
acquisition, PPP model of working, acquisition of mineral assets in other countries
by private sector and long term import and export policy
3 Reconnaissance Permits for Gold, Diamonds, Base metals, 18 prospecting License
and 521 Mining Lease for Major Minerals (Industrial Minerals), 1186 Quarry leases
for cut and dressed blocks of Granites and 1429 Quarry leases for other Minor
Minerals (Construction Minerals)
New Investment
SCCL plans to take up seven coal blocks in various States and 48 mines
in Telangana to meet the growing demand for coal with an additional
requirement of 800 MW Thermal plant set up
Sales surged from INR 5,600 crore in 2014-15 to INR 13,000 crore in
2017-18, registering a growth of 132%
Profits were up from INR 290 crore to INR 1,200 crore, up 314 %
With increasing construction activity, TSMDC aims to excavate 1crore
metric tonnes of sand during FY 2018-19
To meet the requirement of the states, 6 new stockyards are
constructed to store the sand and supply through M-sand supply
State government earned INR 886 crore in 2018-19, registering about
30% growth in revenues, compared to INR 678 crore in 2017-18
4. A. P ranks 1st in in production of Barytes, Limestone, Mica and Silica Sand in India
o 93% share of India’s Barytes reserves
o 30% share of India’s Heavy Mineral Beach Sand reserves
o 18% share of India’s Bauxite reserves
o Leading granite producing state, with 132.5 MT granite resources
o 2nd largest producer of cement with over 19.6 MT of limestone resources
o Potential to develop glass and ceramic industry due to Abundant availability of
Quartz, Quartzite, Silica Sand and clay resources
Sources: Ministry of mines 4
Mines And Geology, Telegana, Ministry of Mines A.P
Overview of Mining Industry in Telangana & Andhra
Pradesh (2/2)
Existing Players
Sources: Ministry of mines
5
Mines And Geology, Telegana, Ministry of Mines A.P
Why Telangana & Andhra Pradesh? (1/2)
Hyderabad is gearing up to become the largest industrial hub in Telangana and South
India, as it has existing conducive ecosystem
1. Mineral Producers/ Mines Owners
a) Total 1800+ mineral based industries in Telegana
723 granite cutting and polishing units in Telangana
463 Stone crusher units in Telangana
Around 234 brick lins within two states
183 Limestone slab cutting & polishing units
80 Quartz pulverizes units in Telangana
Approx. 55 Fullers earth processing units
Link: Scope of establishment of mineral based industries in the Telangana
b) Total 1,700 + mineral-based industries in AP
c) National Mineral Development Corporation(NMDC) is Indian state-controlled
mineral producer having its headquarters in Hyderabad and its Sponge Iron unit in
Khammam.
2. Mining Machinery & infrastructure
a) Growth in demand for Mining equipment during FY 2017-18 recording a growth
of 23%. Total mining equipment in Telangana and AP is 17,000 – 19,000 Units
b) Presence of large & medium infrastructure companies are 50+
c) Total number of civil contractors are 400+
d) Total number of builders are 1000 +
e) Presence of leading institutions such as National Cement, Construction and
Building Material (NCCBM), National Academy of Construction
f) Presence of more than 100+ dealers or traders in the region
g) Presence of regional branches – L&T, Volvo, ACE, Universal, JCB, Doosan,
Caterpiller, Mahindra, Sandvik
3. Cement, Pumps & Valves, Tyre, spare parts, steel & ceramic
a) Total number of cement plants are 50 +
b) Total number of ceramic plants are 35+
c) Approx 60+ Pumps and Valves suppliers in AP and Hyderabad
d) Around 30,000 + dealers, distributors & retails of Tyre industry present in these
two states
e) Presence of more than 100+ Components and Spare Parts manufacturer within
two states
f) Presence of more than 300+ TMT bar dealers
6
Why Telangana & Andhra Pradesh? (2/2)
4. Power Generation and Transmission
a) Telangana government is now gearing up to increase the total capacity to 28,400
b) MW over the next 4-5 years
c) A. P. has increased the installed power capacity from 13,600 MW to 29,000 in FY
2019- 20
d) Waste-to-energy plants planned in 15 + districts within two states
5. Logistics
a) Hyderabad registered 10-12% growth in logistics market in 2018 and occupied 9%
of the total warehouse space in India
b) Entered into MoU with National Highway Authority of India and Container
Corporation of India for development of Multi Modal Logistics Park at Hyderabad
6. IT in Mine Planning & Surveying
a) Presence of more than 300 + IT & electronic companies with two states
b) As per Nasscom, Telegana has registered a growth of 9.32% during FY 2018-19
7
Sources: The economic times, The HinduDemand Drivers (1/5)
1. Growth in Infrastructure sector
Total estimated construction industry for FY 2017-18 is USD 11- 15 billion in
Telangana & AP
Growing with a CGAR of 10-12% Y-o-Y
Telangana & AP together contributes 60-65% market of Construction Equipment in
south market size
A flurry of infrastructure projects – Metro, SRDP, MMTS, ORR etc., it’s participation in
the creation of aerospace SEZ, bio-parks, financial districts, pharma city, IT hubs &
start up incubators are attracting PPP investments in the region
New Investment
Telangana Government has approved INR 40,000 Crore infrastructure boost in next 3
year
Telangana government will be setting up the country's first dedicated construction
and building materials manufacturing park spread over nearly 250 acres near
Hyderabad with KEF Infra
o Have the potential to attract INR 5,000-6,000 Crore investments and generate
around 10,000 direct jobs
Heavy investment in sectors like aerospace & defense (INR 2,500 Crore), pharma (INR
64,000 Crore) , MSME (INR 10 Crore) to built industry specific parks in Hyderabad
Developers and Builders in Hyderabad
Hyderabad has emerged as the top investment destination in the real estate sector,
attracting $793 million, ahead of $ 694 million secured by Bengaluru
- P Ravinder Rao, president, TREDA
As per the recent analysis, sale of residential properties seem positive(34%) as
compare to other metro & Tier 1 cities
The states will spend about INR 22, 784 Crore on several infrastructure projects in
the forthcoming years
Sources: 1) Make my India Website – Construction Sector 8
2) Dun & Bradstreet research paper, NBMCW research paperDemand Drivers (2/5)
2. Power Sector
Telangana has increased its installed power generation capacity to 17,500 MW from
7,778 MW in 2017 making into one of the fastest growing sectors in the country
o The state is now gearing up to increase the total capacity to 28,400 MW over the
next 4-5 years
o Ranks 2nd on Solar Power with generation capacity of 3,400 MW
A.P Ranked No. 1 in implementation of Energy efficiency and conservation
programmes by World Bank
o 24x7 quality industrial power supply, with lowest T&D losses in the country
o 18 GW renewable energy capacity by 2021-22 (10 GW solar, 8 GW wind)
o Waste-to-energy plants planned in 10 districts
o Implementing one of the largest solar pump sets programmes
o Installed power capacity addition planed from 13,600 MW to 29,000 by 2019
o 18,000 MW of renewable energy planned by 2021-22
o 5 GW of solar power capacity addition
o 4 GW of wind power infrastructure projects
o Over 1 crore LED bulbs distributed under Domestic Efficient Lighting programme
(DELP)
Existing Players
9
Sources: Website of A.P. Government of TelanganaDemand Drivers (3/5)
3. Steel Sector
Presence of more than 300+ TMT bar dealers in Telangana & Andhra Pradesh
Andhra Pradesh to set up INR 15,000 crore steel plant in Rayalaseema
o The state government proposes to bear 100 percent of the investment through
loans
o It will be based on PPP model
Telangana to set up INR 7,000 crore steel plant in Bayyaram.
Andhra Pradesh to set up INR 4,500 crore steel plant in Kadapa.
New Investment
Vizag Steel Plant plans to expand its capacity from 7.3
million tonne to about 12 million tonne per annum at an
estimated cost of INR 20,000 Crore
Viki Industries, the makers of isteel TMT bars, is planning
to double production capacity in 18 months and has
earmarked INR 30 crore for the purpose
4. Cement Sector
Cement industry sees about 10 to 18% in demand in Telangana and AP next two to
three years
o Major reasons are - various heavy projects being undertaken by the respective
governments
There are around 50-60 players in the two states and they have a total capacity of
75 Million Tonnes (out of 150 million tones market in South), of which currently 70-
75% is being utilized
Cement industry in Andhra Pradesh is one of largest industries in India
French cement giant Vicat group will invest INR 1,735 Crore in
the Indian cement sector involving both brownfield expansions
and Greenfield projects
It also includes setting up a Greenfield cement manufacturing
facility in Vizianagaram involving an investment of INR 510
Crore
It will invest INR 1,225 Crore on brownfield expansion of the
Karnataka
10Demand Drivers (4/5)
Ramco plans to set up a new 3.15MT/Yr integrated plant Kurnool
District
The project has an investment of nearly US$210m
Anjani Portland Cement plans to build a new clinker production
line at its Chintalapalem plant, Telangana
It has a production capacity of 1.16MT/Yr and this will rise to
2.31MT/yr once the upgrade is complete
It is expected to cost US$61million It is scheduled to be
completed by the end of 2019
Orient Cement plans to upgrade its Devapur in Adilabad
District, Telangana
It will invest INR 2,0000 Crore towards more than
doubling the unit’s cement production capacity to
7.5Mt/yr from 3Mt/yr
Existing Players
11Demand Drivers (5/5)
5. Ceramics Sector
Estimated market size of Ceramic Industry of Telangana and AP is INR 1,000 Crore and
is expected shall be double by 2020
AP would soon become a ceramic hub for the ceramic industry which includes a 30
thousand crore ceramic market and a 4 thousand crore sanitary ware market
New Investment
LIXIL Asia Pacific, has acquired 45 acre land with state-of-
the-art facility at Bhimadole
Will serve as a central production base for the Indian market
It has invested INR 400 Crore and will produce select ranges
of ceramic ware
Cera occupies a market share of 28% in Telangana sanitaryware
market which is valued at over INR 450 Crore
CERA plans to commission two units in next 3-4 months, and
will invest over INR 100 crore cumulatively
It has achieved a turnover of INR 158 Crore in Telangana and
AP, accounting for 14% of INR 1,180 Crore turnover
Telangana contributed to over INR 90 Crore sales, making it the
largest market nationally
Somany Ceramics first plant in south India near
Tiruchirapali in Andhra Pradesh
It will produce about 11,000 to 12,000 square meters
of verified tiles per day
Existing Players
Source: 1) Society of Indian Automobile Manufacturers (SIAM) 12
2) Automotive Component Manufacturers Association of India (ACMA)
3) Department of Industries & Commerce, Government of TelanganaInitiatives and Policy Support by Government (1/3)
The state government has undertaken number of reforms to offer an enabling and
investor- friendly business climate to the investors. Some of the key Ease of Doing
Business initiatives in Telangana include:
Telangana State Industrial Project Approval and Self Certification
System (TS-iPASS) established as a single point for clearances of
industrial set up
Single Window system, combined application form (CAF) with
provision to submit multiple applications in one form, Paperless
application and incentive disbursement
Predefined timelines (max 30 days for processing applications) with
provision for deemed approvals in case of no response
Minimum inspection, maximum facilitation with paperless
application and incentive disbursement
Key Initiatives by the State Government
Transparency in mineral allocation
Release of Policy on Value Addition of Minerals in Andhra Pradesh benchmarked
with leading mining and mineral based economies
Preferential grant of mineral concessions to entrepreneurs willing to set-up
mineral based industry on a priority basis
Increased focus on mineral exploration
Development of Mineral Atlas for promoting mineral based industry
Human resource capacity building for effective mineral administration
IT enablement for efficient mineral administration
Government has launched promotion of export from rural artisans through skill
upgradation in which a suitable agency will be providing skill upgradation to rural
artisans for promoting exports.
13Initiatives and Policy Support by Government (2/3)
Use of GPS
In an endeavour to curb the menace of illegal sand mining, states Govt
decided to introduce GPS tracking system, there were 150 notified sand
reaches and 54 check posts were established to prevent illegal transport of
sand
Geo referral policy where all major minerals and the permissions for mining
activities were being given through auction through e-permit
Penalty of 1 lakh for unauthorized sand mining
Online system in Place
Introducing of M-Sand as a solution to growing sand scarcity amid increasing
demand
o The state government mandated all govt. engineering dept. to use 50% of
M- Sand in all works
Online mineral e- payment & e- permit system facilitates lease holders for
online statutory payments and issues of dispatch permits
Online Mineral Concession application system facilitates entrepreneurs to file
Mineral concession through Meeseva portal
Creation of online website “sand sales monitoring & management system” for
registration of customers, vehicles, online booking of sand, tracking of orders,
interstates sand transpiration and stocky yard details
Source: 1) CII & Yes Bank report on Automotive Industry in Telangana 14
2) Government of Telangana – Annual report 2017-18
3) TSTPC, Government of Telangana. webisteInitiatives and Policy Support by Government (3/3)
Industrial policy of Telangana
1. Effective Industrial Clearances Mechanism through TS- IPASS
A single Common Application Form (CAF) for all departmental approvals
A time limit has been set varying from 1 day to 30 days to clear the approvals
Applications are pre-scrutinized at state and district level and thus avoiding delays in
processing the same
It has been made mandatory for the competent authorities to seek
shortfall/additional information, within three days of receipt of application
In case approvals are not accorded by departments, the projects shall be deemed
approved
2. Telangana State-Wide Investment Facilitation (T-SWIFT) to provide approvals within
15 days to mega projects (over INR 200 Crore investment
3. Telangana State Industrial Infrastructure Corporation (TSIIC) was identified to develop
the potential industrial growth centres, along with developing the required
infrastructure in these centres. Following are some of the initiatives undertaken by
TSIIC:
Establishment of Hyderabad Pharma-City at an area of 14,000 acres
National Investment and Manufacturing Zones at Zaheerabad in Medak district, with
an estimated investment of INR 17,300 Crore and to generate employment to 2.61
lakh people
Aerospace and Precision Engineering SEZ at Adibatla, will hosts 10 operational
aerospace components manufacturing units
Genome valley is largest innovation and life sciences cluster in Asia and is only clean
manufacturing eco system. Will have more than 200 companies in the valley
T-Hub has been developed aiming at making Hyderabad as a start-up city and
Telangana as a start-up State
Information Technology Investment Region (ITIR), has been cleared by the
Government of India. With this IT products worth INR 2, 35,000 Crore are expected
to be exported
Plastic and polymer zone in 100 acres of land in Tumaloor village of Rangareddy
district. With an estimated investment of INR 123.24 Crore
15
Source: Telangana Government websiteWhy Hyderabad as a Destination for Organizing
Expos on Mining Industry – (1/2)
Why Hyderabad??
The state is a store house for various minerals specifically coal, iron ore, limestone,
gold, diamond, dolomite, manganese, quartz, sand for stowing, barytes, uranium,
limestone salbs, road metal, building stone etc.
Both public and private sectors established large and medium scale mineral based
industries within two states
o Total 1800+ mineral based industries in Telegana
o Total 1700+ mineral based industries in A.P
The state not only has number of mineral producers, but the end user or consumers
industries are also huge
Number of construction projects are running successfully , the most significant step is
fast-paced developments, such as creating infrastructure facilities and better
connectivity through the Metro, SRDP, MMTS, etc. that improve the overall climate of
doing business in the state
o Connectivity has been a constant focus of the state government, which has
recently pumped in INR 669 Crore for the 69-km Warangal Outer Ring Road (ORR).
The ORR will connect major National Highways to smaller towns
Constant supply Mining equipment in the state, more than 100+ dealers or traders in
the region
o Presence of regional branches – L&T, Volvo, ACE, Universal, JCB, Doosan,
Caterpiller, Mahindra, Sandvik
Increase in installed power generation capacity to 17,500 MW from 7,778 MW in 2017
making into one of the fastest growing sectors in the country
o The state is now gearing up to increase the total capacity to 28,400 MW over the next
4-5 years
o Ranks 2nd on Solar Power with generation capacity of 3,400 MW
Government of Telangana has identified Automobile and Auto Ancillary sector as key
thrust sector and is providing necessary eco system through incentives, subsidies
through ‘Telangana State Industrial Policy Framework’
16Why Hyderabad as a Destination for Organizing
Expos on Mining Industry – (2/2)
Hyderabad is a well connected location for Exhibitors as well as Visitors
o Road connectivity: The density of notified national highways in Telangana is 2.90
km/100 sq.km against the national average of 2.84 km/100 sq.km
o Strong railway connectivity: The State also has an integrated railway network
with railway terminals such as - Nizamabad, Mahbubnagar, Kamma Reddy,
Bodhan, Jedcherala, Gadwal and, Balanagar
o Access to world class airport facility: Rajiv Gandhi International Airport (RGIA),
Shamshabad is one of the largest 7 modern airports in India
o Government of Telangana has entered MoU with Ministry of Civil Aviation and
Airports Authority of India for development of small airports at Kothagudem and
Warangal
o Government of Telangana is ranked no 1 in Ease of Doing Business given by
Department of Industrial Policy & Promotion (DIPP) and World Bank
o State of Telangana has unique geographical advantage. It geographically placed
in close proximity to major consumer markets such as Bangalore, Mumbai,
Kolkata, Chennai etc.
1718
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