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Friday 1 April 2011

India needs to raise its Coal Production

India has the largest reserves of coal in the world. It is estimated to be around 257 billion tonnes. Little wonder, generations of Indians have grown reading in school that coal is black diamond. After all, it feeds thermal power plants across the country, the major source of electricity for industry and individual homes.

Despite the growth of hydro, solar and wind, the dominance of coal continues. India’s appetite is mounting. It is the third largest consumer of coal in the world. About 60 percent of energy in India comes from coal production. Close to 530 million tonnes is mined annually in the country. Over 83 percent is obtained through the procedure called opencast mining. A number of power sector analysts believe that the dependency on the natural substance is likely to continue for the next two decades.

The demand for power has gone up with the rise in population and rapid urbanization in all the states. In addition, India’s growth story is attracting global giants to set up manufacturing bases in various parts of the country. It is obvious the requirement for electricity is growing exponentially. But the coal production is much less than what is required. The thermal power plants based on indigenous coal needed 434 Million Tonnes (MT) during 2010-11. But close to 388 MT was available. About 35 MT were imported to bridge the gap.

What could surprise is the scarcity amidst plenty. According to India’s premium body, Geological Survey of India, of the total reserves about 98 billion tonnes are fit for coal production. The lignite reserves are estimated to be around 38 billion tonnes. However, only about 4.2 billion tonnes could be mined.

The imported coal has one distinct advantage. The ash content in it is much low than those mined in India. However, due to limitations of boiler design in India’s thermal power plants, about 10-15 percent of imported stuff is blended with the local ones. The blending is a complimentary activity to raise the raw feed to a uniform quality. 

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