Coal is the most abundant fossil fuel resource in the country. India, currently, stands fifth in terms of total World Coal Resources, whereas it is third from the point of view of identified reserves. The bulk of the coal reserves are confined to the south-eastern quadrant of the country in West Bengal, Jharkand, Odisha, Chhattisgarh and Madhya Pradesh. As per Geological Survey of India, as on July 27, 2022, the in-situ geological resources of coal in India up to a depth of 1,200 m is 352.16 BT, which includes proven, indicated and inferred resources. Of the total resources, the share of prime coking was 5.313 BT (1.54 per cent), medium coking 27.984 BT (8.13 per cent), blendable/semi coking 1.708 BT (0.50 per cent). Share of non-coking coal (including high sulphur) was 309.017 MT (89.83 per cent). Most of these resources occur in Gondwanas and the balance in the tertiary formations.

Coal resources
India ranks second amongst the coal producing countries of the world in terms of annual coal production. However, in respect of coal resources, it is endowed with less than 1 per cent of world coal resources. Of the 352.16 BT of Indian coal resources up to a depth of 1,200 m, about 177.18 BT fall under proved or confirmed category. This constitutes about nine percent of the world proved coal resources.

Mining depths in Indian coalfields are quite shallow, barring a few mines in Jharia and Raniganj coalfields. Major share of coal resources lies at a depth of less than 300 m. About 87 per cent of coal resources lie within the depth range of 600 m. However, in most of the coalfields, exploration work beyond 600 m depth is yet to be taken up. It is expected that the resource figures will improve considerably, with increased depth of exploration.

Deposit characteristics vary widely from coalfield to coalfield. In some areas like Jharia and Raniganj coalfields, high concentration of super imposed seams (as much as 40 in number) pose great challenge to mining operations. Presence of a large number of thick seams, though a blessing for open cast mining, is again a major underground mining problem. Reserves in steeply inclined seams are, however, only marginal.

Due to the very nature of deposition, Indian coals, in general, are of inferior quality owing to high ash percentage, when compared with coal available in the international trade arena. Despite this, Indian coals in general merit better environment friendly use because of:

Additional advantages for industrial use:

Coal deposits in India are confined to eastern, southern and central parts of the country, consisting of 27 major coalfields. The shares of overall coal resources of different States 97.92 per cent are in:

Balance share of coal reserves is distributed over Arunachal Pradesh, Assam, Meghalaya and Nagaland. Quality wise resource is 10.73 per cent for coking coal and 89.27 per cent for non-coking coal. Out of the total non-coking coal, the

Jharia Coalfield is the main source of prime coking coal. Superior grade non coking coals are generally available in Raniganj Coalfield of West Bengal, Central India Coalfield of Madhya Pradesh and Talcher Coalfields of Odisha.

Coal production
Coal production achieved in the country during the year 2020-21 has been 716.08 MT as compared to the production of 730.87 MT achieved during the previous year that is, FY 2019-20 showing a negative growth rate of 2.03 per cent.

About 84 per cent of the total coal production in the country comes from the collieries of Coal India (CIL). CIL is also the biggest supplier of coal in the country. The graph shows the coal production of Coal India from financial year 2005-2022.

Through sustained programme of investment and greater thrust on application of modern technologies, it has been possible to raise the all India production of coal at 716.08 MT in 2020-21 (provisional). The all India production of coal during 2021-22 was 778.19 MT (provisional) with a positive growth of 8.67 per cent.

Singareni Collieries Company (SCCL) is the main source for supply of coal to the southern region. The company produced 50.580 MT of coal during 2020-21 as against 64.044 MT during the corresponding period last year. SCCL production of coal during 2021-22 was 65.022 MT (provisional) with a positive growth of 28.55 per cent. Small quantities of coal are also produced by TISCO, IISCO, DVC and others.

The statistics show the latest figures pertaining to the coal production of some major companies in August 2022. (All figures have been measured in MT).

Demand, production and supply
Demand of power, steel and cement in a developing country is closely related to its economic growth. It is difficult to imagine a country slated for growth without using power, steel and cement. Global as well as Indian steel and cement production are dependent on coal. That is why distribution of coal of adequate quantity and quality to power sector followed by steel and cement manufacturing sector is considered a priority in Indian coal industry.

Present status of coal projects
Under the provisions of the Coal Mines (Special Provisions) Act, 2015 and Rules made there under, so far 85 coal mines have been successfully allocated (originally 92 coal mines were allocated, later on Coal Mine Development and Production Agreement were terminated in respect of 7 coal mines). Of these 85 coal mines, 25 have been allocated through electronic auction (24 to private companies and one to a government company) and 60 have been allocated to government companies through allotment. Out of these 85 coal mines, 48 coal mines have been allocated to the regulated sector i.e. power, 21 coal mines to the non-regulated sector (NRS) i.e. iron and steel, cement and captive power as well as 16 coal mines for sale of coal. Allotment/vesting orders have been issued for 77 coal mines.

Auctioned coal mines: Out of the 15 operational (Schedule II) coal mines auctioned under the provisions of the Coal Mines (Special Provisions) Act, 2015, mining operations have commenced/mine opening permission granted in 12 coal mines. The remaining three schedule II coal mines are awaiting various clearances for operationalisation. In respect of these three non-operational schedule II coal mines, action has been/is being taken as per the provisions of Coal Mine Development and Production Agreement.

Further, out of the 10 Schedule III coal mines, one coal mine was granted mining opening permission. Remaining schedule III coal mine are scheduled to be operational from June 2018 onwards as they were not operational at the time of the allocation. The Deocha Pachami Dewanganj Harinsigha coal block recently allocated to WBPDCL by Ministry of Coal is considered to be the largest coal block in India. At present the coal requirements of WBPDCL is around 24 MTPA, which is expected to reach 40 MTPA with the capacity addition in progress.

Investment opportunities in coal industries
The Government of India has allowed 100 per cent foreign direct investment in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. The Government introduced Mineral Laws (Amendment) Bill, 2020, to open a new era in Indian coal and mining sector, especially to promote “ease of doing business”. The National Mineral Policy 2019 was launched for transparency, better regulation and enforcement, and balanced social and economic growth into the sector.

Under the present policy of free market economy, Government is removing controls on industry and trade, reducing the tariff on import and allowing private investment in companies even up to majority shareholding by private/foreign sources.

Technology roadmap for coal sector
Coal India has a target of achieving 1 BT by 2023-24. To reduce the dependency on imports, it is critical for CIL to reach the 1 BT target, thereby embarking on a technological transformation journey. The objective is to implement new technologies and build digital infrastructure to support current and future ramp-up for the mines.

The scope of this roadmap is as follows:

European mining industry
The VDMA mining association represents around 145, mainly medium-sized, mining supply companies that manufacture mining equipment and technology for surface and underground mining, processing and conveying of raw materials, supplemented by consulting and engineering services. The member companies represent a turnover volume of around Euro 3.2 billion. With an export quota of around 94 per cent, the sector is one of the most export-intensive mechanical engineering branches in Germany. Important markets are the regions of Europe, North America, China and Russia, Middle East and, most recently, Australia. Germany is one of the most important suppliers to the Indian mining industry. By November 2021, German manufacturers had exported equipment worth Rs 218 crore to India.

Conclusion
Coal will continue to be India’s primary mainstay energy source as India is slated to shape global demand this decade. NITI Aayog, the central government’s think tank, said that the demand for coal would range between 1192-1325 MT by 2030, led by usage from the electricity sector. In addition, in its annual coal report, the International Energy Agency (IEA) stated that greater economic growth and growing electrification will drive a demand growth of 4 per cent per year.

NITI Aayog’s report also mentioned that the coal-based utility electricity generation capacity in India is expected to peak at 250 GW by 2030; however, coal-based utility electricity generation in the country will slow down from 2040 onwards. While coal-based thermal power generation will grow, its share in the total power generation mix of the country will decline to 50 to 55 per cent from the current 72 per cent – over the next decade due to the shifting capacity mix with a growing share of renewable energy.

Although India pledged to extend its scope of renewable energy (RE) to 500 GW by 2030 in line with the announcement made by PM Modi at the COP26 conference last month, the IEA notes that the goal to reach net-zero emissions are not visible in the near-term forecast, reflecting a gap between ambitions and action. Therefore, government power utilities must invest greatly in advanced and clean coal technologies throughout the value chain.

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