Recent Coal Facts India: An Instinct that Might Help us Act Proactive

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Recent Coal Facts India: An Instinct that Might Help us Act Proactive

Fuel supply to power plants, one major concern for fulfilling demand supply gap of India's energy needs a revamp in the way the coal sector operates in the country. The current and future five year plants target a huge capacity addition from coal based fuel.. These facts listed below speak much needed concern for the coal sector and thermal plants based on coal. 

  • Coal is the main stay of India's energy and will continue for quite some time into the future.
  • About 55% of primary energy supply and about 70% of power generation in the country is coal based.
  • The supplies of coal in the recent times are falling short of projected demand due to domestic production capacity constraints on various
    accounts like Environment & Forest Clearance, Land acquisition & related R&R, Law & Order, Coal Evacuation facilities etc..
  • We are the third largest producer of coal after China and USA, but we are dependent on imports of coal mainly to meet the requirements of coking coal for metallurgical purposes on qualitative and quantitative reasons and thermal coals due to demand-supply gap.
  • The XI Plan ended with an overall production of 540 million tonnes in 2011- 12 against which the production envisaged in the XII Plan is 795 million tonnes implying a growth of 8%.
  • The gap between the demand and domestic supply in the terminal year 2016-17 of the XII Five Year Plan works out 185 million tonnes which needs to be met through imports.
  • Monitoring coal production, off-take and the status of environmental and forestry clearances apart from keeping a close liaison
    with the State Governments so as to achieve the production targets.
  • We need to augment domestic production of all the available resources in meeting the projected demand for energy. While there are constraints in
    availability of oil & gas, nuclear fuel and development of hydro resources, country is endowed with adequate coal resources on which our energy
    plans are mainly relied upon. Also domestic coal has cost competitiveness over other fuels.
  • The assessed geological resources of coal as of 1/4/2013 stand at 298.91 billion tonnes with 123.18 billion tonnes (41%) of. proved reserves.
  • To achieve the projected growth in production a number of new projects are planned to be taken up in PSU coal companies and a number of coal
    blocks have been allocated to various private and government companies and few more are in the pipeline for allocation. Besides, supplies would
    also need to be made good through imports.
  • For increased transparency in coal block allocation the provisions of MMDR Act have been amended and new set of Rules have been framed for
    allotting new blocks through competitive bidding. Recently 14 blocks for power and 3 for mining have been put on offer under government
    dispensation route. Few more blocks for offer to private sector are in the pipeline.
  • In order to fast track development of some of the coal blocks in CIL, it is proposed to develop these blocks through mine developer and operator
    (MDO). Modalities are being worked out in this regard.
  • The potential coalfields from where the future production contribution is envisaged are North Karanpura in Jharkhand, Mand-Raigarh in
    Chhattisgarh, lb and Talcher in Odisha. Ministry of Coal is rigorously following with Ministry of Railways for implementing the identified critical
    rail links in these coalfields as well as establishing last mile connectivity.
  • With a view to infuse competition in the coal sector and to review the existing institutional mechanism, it has been proposed to take up the
    exercise of restructuring of Coal India Limited.
  • With a view to improve production, productivity and safety, it has been proposed to take up a Study on modernisation and technology
    development in CIL.
  • The issue of dealing with imports through CIL particularly with regard to pooling of price has been appropriately addressed.
Share your thoughts and views as comments below on the listed facts above.
Source: Cerebral Business Research Pvt. Ltd.

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