Coal is one of the main sources of energy in India. Accordingly, affordable and sustainable supply of coal is inextricably linked to the goal of ensuring energy security in India.
It currently accounts for 55% to 70 % of India’s total energy consumption (CSO 2013)
| Details | Million Tonnes |
| Total consumption of coal | 942 |
| Domestic Production | 730 |
| Imports | 212 |
Reason for high reliance on coal – non-viability of large-scale use of alternate sources of energy.
It will remain the most viable fuel for driving economic growth for many years to come
see TERI and PSA 2006; Ministry of Coal 2005; Planning Commission 2005.
About 75% of the total coal produced in India is used for power generation
Coal Reserves In India – estimated at 286 billion tonnes. It is sufficient to meet India’s demand for at least the next 100 years. (Indian Bureau of Mines (IBM 2012),
India is the second largest coal importer, despite having the world’s fourth largest coal reserves and being the second largest producer
Coal Reserves in India
coal sector, which has dominant use in three core sectors i.e. power, steel, cement.
India has 4th largest reserves of coal and holds about 286 billion of world’s some 850 billion of proven reserves.
Indian coal is classified in 2 categories i.e.
- coking coal and
- non-coking coal.
This is a usage based classification, as coking coal is essential for Iron and steel industry.
More, streamlined classification is on basis of carbon content and stage of formation.
Coal is formed by fossils of plants, trees, bushes etc. which got deposited in shallow basins millons of year ago. Later decomposition by bacteria converts it into peat, which is generally unviable to mine. After this bio- chemical action ceases and geo chemical action becomes dominant. It results in gradual development of Lignite, Bituminous and Anthracite coal.
Peat is Impure, has very low carbon content (in turn calorific value) of about 40%. Lignite, bituminous, anthracite coal has carbon content of 40-60%, 60-80% and 80-90% respectively. Remaining matter in the coal is called volatile material such as moisture, ash content and sulfur content. These are gradually removed by metamorphic process i.e. pressure and heat.
Bituminous coal has special significance because it contains Bitumen which on heating in absence of oxygen is converted into coking coal. This removes volatile material in the coal and is further heated to get Coke, which is used in blast furnaces to extract iron from iron ore.
This type of Coking coal is what India lacks, as 88 % of reserves are of Non Coking type and rest 12 % have high Ash content. Indian Coking Coal is cheap and of poor quality and imported Coking coal is expensive and good quality. Steel industry blends both to secure a moderate cost and quality.
Production From These Reserves Has Been Dismal Mainly Due To Following:
(Screening committee specified time limits for production ranging from 36-54 months from time of allocation)
- Delayed environment and forest clearances:
Environment ministry Classified ecological sensitive areas in ‘Go and No Go areas’.
Total prohibition is there on mining in no go areas.
And these areas contain 30 % of total allocated mining reserves.
- Further there are other clearances required from State and Central Governments.
- Land Acquisition problems
- Lack of adequate Technology
- Consent of Gram Sabha should be mandatory before commencement of mining and Some proceeds of mining revenue should go to ‘Districts Mineral Foundation’ for benefit of affected persons and their families.
This resulted in situation where India has to import coal to the tune of 171 million tons. In comparison Coal India produced 462 million tons of coal. Some Indian companies and also CIL have acquired coalmines overseas to ensure continuous supply.
