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Karmayogi
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Coal Industry |
Coal mining in India dates back to the 18th century, however the regulatory
framework for this industry was conceived in 1923. In 1972-73, the Indian government
nationalised the coal industry, primarily to develop the sector, since it was considered
of strategic importance for rapid industrial development. Coal India Ltd (CIL) was
incorporated as a holding company for seven coal producing subsidiaries and a pllanning
and design focussed institute. It is engaged in mining from a total of 495 working coal
mines which account for nearly 88 percent of total production.
Coal Industry highlights:
- India is the third largest producer of coal in the world.
- Coal is one of the primary sources of energy, accounting for about 67% of the total
energy consumption in the country.
- India has the fourth largest reserves of coal in the world (approx. 197 billion tonnes.).
- Coal deposits in India occur mostly in thick seams and at shallow depths. Noncoking coal
reserves aggregate 172.1 billion tonnes (85 per cent) while coking coal reserves are 29.8
billion tonnes (the remaining 15 per cent).
- Indian coal has high ash content (15-45%) and low calorific value.
- With the present rate of around 0.8 million tons average daily coal extraction in the
country, the reserves are likely to last over a 100 years.
- The energy derived from coal in India is about twice that of energy derived from oil, as
against the world, where energy derived from coal is about 30% lower than energy derived
from oil.
- As of 2003, India has 19 coal washeries (total capacity:27.2 million tonnes per annum) of
which 15 are owned by CIL.
- The use of beneficiated coal has gained acceptance in steel plants and power plants
located at a distance from the pithead.
Energy and Environment
27 November 2006, Forbes magazine
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China
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India
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Recoverable Coal Reserves
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126,214.7 million short tons
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101,903.2 million short tons
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Coal Production
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2,156.4 million short tons
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403.1 million short tons
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Coal Consumption
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2,062.4 million short tons
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430.6 million short tons
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Production
India has huge untapped potential for underground mining with extractable
reserves upto a depth of 600 metres. Currently mining is done predominantly by open cast
methods to exploit the 64 billion tonnes of proven reserves situated within a depth of 300
metres. Lower operating and production costs, greater percentage recovery and a higher
output per manshift compared with underground mining are some of the advantages presently
associated with open cast mining in India.
External trade
Presently, India is not a major exporter of coal and essentially caters to the
demands of neighbouring countries like Bangladesh, Nepal and Bhutan. However, there are no
restrictions on coal exports under the existing Export-Import Policy of India. India
imports small quantities of low ash-conten coal principally for use by steel plants, which
blend it with Indian coal. Import duties are low and are expected to be lowered further.
A look into the future
India's coal demand is expected to increase manifold within the next 5 to 10
years due to the completion of on-going coa;-based power projects, and demand from
metallurgical and other industries. Demand for coal has been rising at an annual rate of 6
per cent since 1992-93 and CIL and its subsidiaries will be unable to meet the projected
demand alone. The investment needed to bridge the gap----400 million tonnes, between the
level of production in the public sector (290 million tonnes in 1995-96) and the projected
demand of 690 million tonnes (2009-10)----is estimated to be US$ 18 billion. The public
sector corporations----are expected to increase their production by about 250 million
tonnes by 2009-10, subject to their making an additional investment of US$ 8-10 billion.
The balance requirement of 150 million tonnes will have to be met by imports in the short
run and by new investments in the long run.
With the advent of the economic reforms, government controls regarding pricing and
distribution have been relaxed and a new coal policy permitting private sector
participation in commercial coal mining, has been announced.
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Fast facts:
- India is the third highest producer of coal in the world.-
Coal accounts for about 67% of total energy consumption. consumption in
India.
- India has the fourth largest coal reserves (197 billion tons)
in the world.
- India's coal reserves form around seven percent of world's
total and are fourth largest in the world.
- Coal reserves will last India another 100 years. |
