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Mobilization of Coal Supply

Presented at the IRADe Energy Conclave in 2006, this report outlines measures to boost coal production, reserves, and regulatory reforms for a stable energy sector in India, including incentivizing clean coal technology adoption.

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Mobilization of Coal Supply

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  1. Mobilization of Coal Supply Presented at the IRADe Energy Conclave T.L. Sankar (Advisor Energy Area) Centre for Infrastructure Management ADMINISTRATIVE STAFF COLLEGE OF INDIA Bella Vista: Hyderabad-500 082 27 July 2006

  2. IEP Estimate of Energy Demand Assumed GDP Growth rate = 8% per year. Elasticity reducing slightly over time in case of both TPES and Electricity TPES - Total Primary Commercial Energy Supply. Mtoe - Million tonne oil equivalent. B.kWh - Billion units of electricity.

  3. Sources of Power Generation

  4. IEP Estimates of demand Ranges under scenarios

  5. Coal Demand estimate by IEP (Plan-wise scenario)

  6. Coal Production – Achieved/Required Rates of Growth Let us assume that growth rate increases by 1% over the past trend and is 6.3% Production in 2031-32 could be = 2293 MT.

  7. Measures proposed in Expert Committee on Coal Reforms • Delineate the coal reserves situation in India on the basis of international standards UNFC standards. • Allow private industry to enter into exploration-cum-mining lease on the lines of NELP in oil industry. • Liberalize captive mining procedures and release all areas with CIL which are not covered in their production plans up to 12th plan. • Create a Coal Regulatory Authority.

  8. Measures proposed in Expert Committee on Coal Reforms (Contd.) • Dual pricing in coal sector. For industries which ensure large quantities of coal and need special infrastructure arrangements and whose end-products prices are regulated, a cost plus basis pricing to be determined by the Coal Regulator: The price of coal to other industries to be market determined through at auction. • 6. FSTA arrangements to be introduced.

  9. Measures proposed in Expert Committee on Coal Reforms (Contd.) • 7. Encourage coal exports and imports simultaneously each year. • Preference in future power plant locations – for pit head and port locations. • Undertake immediately measures to introduce and use extensively clean coal technology. • Restructuring the coal industry and legal structures governing coal industry.

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