Coal Industry Essay

2416 Words 10 Pages
Register to read the introduction… Coal India and its subsidiaries lead world coal production with 2006 output of 343 Mt. With a workforce of nearly 470,000 and 390 mines, Coal India is responsible for 88% of the coal extracted in India every year. Singareni Collieries, a public-sector company in the state of Andhra Pradesh, ranks second with about 35 Mt/year. India had trouble reaching the production targets specified in the five-year plan, so the government opened up the market to the private sector, but only partially. For now, only the so-called captive mines are affected by this change, i.e. mines that supply an electric power plant, a steel mill or a fertilizer plant located at the pithead. The end of self-sufficiency For many years, domestic production satisfied the bulk of domestic demand. In the last few years, however, production has had difficulty keeping up with the big increase in demand. In five years, coal imports have doubled, rising from 20 Mt to 41 Mt for FY2005-2006. Recent statistics show an even steeper uptrend, with imports reaching 61 Mt for …show more content…
These imports totaled close to 25.8 Mt for FY2006-2007. ... but that's not all But steel-grade coals are not the only thing that India needs to import. Its huge demand for thermal energy has driven steam coal imports up (to 36 Mt for FY20062007) and the pace is expected to accelerate. India needs to install 130 GW in electrical capacity in the next ten years, which is equivalent to 1 GW per month. And coal will continue to dominate the electricity mix in India... and China as well. Major logistics problems Although great effort has gone into the modernization of the logistics chains in India, its entire electricity/coal supply system is coming under increasing pressure. ■ In 2004-2005, a major supply shortage forced the largest domestic power generation company, National Thermal Power Corporation, owned by the government of India, to import close to 4 Mt. ■ In 2005, the level of stocks at the 25 largest Indian power plants (about 35% of installed thermal capacity) did not exceed seven production days. Indian coal is mostly extracted in the east of the country and consumed in the north and southwest. Regularly, rail transport problems occur and customers must turn to imports. This situation has prompted key players in the electricity market to secure their supply of imported coal by building up their import activities and announcing the acquisition of holdings in mines located in other countries. Since 2005, the Ministry …show more content…
In the medium term, only one supercritical power plant, Seepat (3 × 660 MW), scheduled to start up in 2009, will be able to reach an efficiency exceeding 40%. This being said, it will not long remain isolated because, under the XI Plan (2007-2011) and XII Plan (2012-2016), all new plants will be supercritical. This may help moderate the sharp increase in coal consumption that is expected in the electricity sector. Experiments with IGCC technology are also underway in India. An initial pilot plant (6.2 MW) is to be followed by a demo-plant (100-125 MW) in the state of Uttar Pradesh. India also sees CO2 capture/storage as a priority. It is a member of the Carbon Sequestration Leadership Forum (CSLF) and involved in FutureGen, a US government project to build and operate a near zero-emissions coalfueled power

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