Syllabus: GS3/ Economy
Context
- The Union Ministry of Coal has stated that India currently has an overall coal stock of about 210 million tonnes (MT), which is estimated to be sufficient for around 88 days of consumption.
About
- India, with the fifth-largest coal reserves and being the second-largest consumer, heavily depends on coal.
- Coal contributes 55% to the energy mix and powers over 74% of electricity generation in India.
- Adequate coal stocks help ensure uninterrupted electricity supply during peak demand while also acting as a buffer against global energy market volatility and uncertainties in alternative fuel supplies such as natural gas.
Current Coal Stock Status
- India’s total coal stock stands at around 210 MT, which is considered adequate to meet national demand for nearly 88 days.
- Around 54.05 MT of coal is currently available at thermal power plants, which is estimated to be sufficient for approximately 24 days of consumption at the present rate.
- The total coal stock available at the mine end is around 156.58 MT.
Key terms related to coal supply
- Pithead coal refers to coal that is mined and stored near the mine site before being transported to power plants or other consumers.
- The Non-Regulated Sector (NRS) refers to industrial users such as cement, steel, sponge iron, and captive power plants that procure coal outside the regulated power sector allocation framework.
Government initiatives
- Commercial Coal Mining opened the sector to private players to boost production, efficiency, and competitiveness.
- Mission Coking Coal aims to reduce import dependence by enhancing domestic coking coal availability.
- Safety measures: Directorate General of Mines Safety revamped the Coal Mines Regulations 1957 into The Coal Mines Regulations 2017, addressing modernisation, mechanisation, emergency response, and evacuation planning.
- Coal Mitra Portal developed for flexible coal allocation to power plants, ensuring better coal supply management.
What are the Challenges?
- Despite strong stock levels, India’s heavy dependence on coal raises environmental concerns, particularly in relation to greenhouse gas emissions and air pollution.
- The continued expansion of coal production conflicts with India’s long-term climate commitments, including its target of achieving net-zero emissions by 2070.
- Transport bottlenecks, logistical inefficiencies, and seasonal disruptions affect timely coal supply to power plants.
Concluding remarks
- The coal sector remains central to India’s energy security and economic development, ensuring reliable power supply and supporting industrial growth.
- Strengthening coal production, supply chains, and technological advancements will continue to play an important role in meeting India’s rising energy demand.
Classification of Coal
- Anthracite: It is the best quality of coal which carries 80 to 95% carbon content. It has the highest calorific value.
- It is found in small quantities in Jammu and Kashmir.
- Bituminous: It carries 60 to 80% of carbon content and a low level of moisture content. It is widely used and has a high calorific value.
- It is found in Jharkhand, West Bengal, Odisha, Chhattisgarh and Madhya Pradesh.
- Lignite: It is often brown. It carries 40 to 55% carbon content. It has high moisture content so it gives smoke when burnt.
- It is found in Rajasthan, Lakhimpur (Assam), and Tamil Nadu.
- Peat: It has less than 40% carbon content. It has low calorific value and burns like wood.
Coal India Limited
- CIL is a Maharatna Public Sector Undertaking under the Ministry of Coal.
- It was established in November 1975.
- Headquarters: Kolkata.
- Products: CIL produces coking coal, semi-coking coal, non-coking coal, washed and beneficiated coal, coal fines, and coke.
- CIL has 21 training Institutes and 76 Vocational Training Centres.
- Strategic Relevance: It contributes to 80% of total domestic coal production and 75% of total coal based generation.
Source: TH