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Coal Position of India.

Coal Position of India.

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Published by Ankur Pathak

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Published by: Ankur Pathak on Feb 18, 2009
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02/01/2013

I
July 2006ECOAL 3
ndia is also active in international
energy and environmental discussions,

such as through its involvement in the
Asia Pacific Partnership on Clean
Development & Climate (AP6), FutureGen,
the Carbon Sequestration Leadership
Forum and as a signatory to the Kyoto
Protocol (see CDM report on page 5).

Key Energy Facts
India is a major producer and consumer
of energy:

\u2022 it is the world\u2019s eleventh largest
energy producer, accounting for about
2.4% of the world\u2019s total annual
energy production;

\u2022 the sixth largest energy consumer,
accounting for about 3.7% of the
world\u2019s total annual energy
consumption;

\u2022 primary energy demand has grown
over the last thirty years at an average
of rate of 3.6% a year.

Coal is the dominant commercial
fuel, meeting half of commercial primary
energy demand and a third of total
energy needs. According to IEA
projections, coal will remain the
dominant fuel in India\u2019s energy mix
through to 2030. Demand is projected to
grow from 391 Mt in 2002 to 758 Mt in
2030. Only China\u2019s demand for coal is
expected to outstrip India\u2019s. The power
sector will be the main driver of India\u2019s
coal consumption \u2013 currently around
68% of India\u2019s electricity is generated
from coal, although this share is
expected to decline slightly to 64%
by 2030.

The IEA projects that biomass and
waste, the main fuels in the primary
energy mix in 2002 (includes non-
commercial sources of energy), will
increasingly be displaced by coal and oil.
Natural gas use is set to increase rapidly
but from a low base, therefore its share

in total primary energy supply will reach
only 9% in 2030 compared to 4% in
2002. A small number of new nuclear
plants will be built, leading to a tripled
increase in the nuclear share.
Hydropower will increase strongly up to
2020 but its growth is expected to then
slow as most good sites are exhausted.

Electricity Generation

India is the sixth largest electricity
generating country in the world and
accounts for about 4% of global annual
electricity generation. India is also
ranked as the sixth largest electricity
consumer worldwide. Annual electricity
generation and consumption have
increased by about 64% in the past
decade and the projected rate of
increase in electricity consumption -
estimated at as much as 8-10%
annually through to 2020 - is one of the
highest in the world.

Coal Reserves

Coal reserves in India are plentiful but
low quality. India has 10% of the world\u2019s
coal, at over 92 billion tonnes, third only
to the USA and China in total reserves.
At current rates of production, India has
enough coal for the next 217 years.

Most of India\u2019s coal reserves are
relatively high ash bituminous coal and
are located in Jharkhand, Orissa and
West Bengal (see map). Less than 5% of
India\u2019s coal reserves are coking coal,
needed for the steel industry. As a result,
India imports coking coal to meet about
25% of its annual needs.

Coal Production & Consumption

Indian coal production reached 375 Mt in
2005 (see table). Almost all of India\u2019s
565 mines are operated by Coal India
and its subsidiaries, which account for
about 86% of the country\u2019s coal
production. Current policy allows private

mines only if they are \u2018captive\u2019
operations, i.e. they feed a power plant
or factory. Most of the coal production in
India comes from opencast mining,
contributing over 83% of the total
production. Coal India employs around
460,000 people and is one of the largest
five companies in India.

Energy Poverty

Some 595 million people in India \u2013 60%
of the Indian population \u2013 depend on
traditional biomass for cooking and

heating. The electricity industry faces

enormous challenges in providing a
reliable service and meeting rising
demand. The investment cost in meeting
the projected increase in generating
capacity, transmission and distribution is
estimated by the IEA at around $680
billion from now to 2030. Without the
introduction of major new government
initiatives, the IEA believes India is
unlikely to achieve its target of full
electrification by 2012.

COUNTRYPROFILE
A FOCUS ON INDIA
>> The choice of India for the location of the WCI/IEA workshop
was an important one \u2013 along with China, India is increasingly
influential in global energy markets.>>
MAHARASHTRA
ANDHRA
PRADESH
MADHYA PRADESH
JHARKHAND
UTTAR
PRADESH
ORISSA
CHHATTISGARH
ARUNACHAL
PRADESH
NAGALAND
ASSAM
W. BENGAL

Smaller amounts of coal
are also located in
Arunachal Pradesh (31 million tonnes),
Meghalaya (117 million tonnes)
and Nagaland (4 million tonnes)

MEGHALAYA
8.3
11.4
0.8
4.7
15.1
7.5
35.4
9.4
0.3
Map of Coal Reserves in India (billion tonnes)
Coal Production & Consumption in India, 1996-2005 (in million tonnes)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Production
268
283
294
290
296
307
320
333
353
375
Bituminous
248
263
273
269
276
285
297
310
328
347
Lignite
20
21
20
21
20
22
23
24
25
22
Consumption
301
325
329
341
368
375
391
391
NAV
NAV
Source: CSLF website, original source Government of India
NAV = not available
Sources: Ministry of Coal, India; Foreign and
Commonwealth Office, UK
Line of Control
4 ECOALJuly 2006International
Activities
In April this year,

India became the
first country to
join the USA on the
government steering

committee for the
FutureGen Project. FutureGen is an
initiative to build and operate the
world\u2019s first coal-based power plant that
removes and stores CO2 while producing
electricity. The signing of the agreement
followed President Bush\u2019s trip to India at
the beginning of March. India will
contribute $10 million to the
FutureGen Initiative and Indian
companies are also expected to
participate in the private sector

segment.

India is a member of the Carbon
Sequestration Leadership Forum (CSLF),
an international initiative to assist in the
development of improved cost-effective
technologies for carbon dioxide capture
and storage. India is also one of the six

countries involved in the newly
formed AP6, as well as being a signatory
of the Kyoto Protocol.

Challenges Facing Coal in India
The Indian energy sector faces a number
of challenges.

\u2022 Lack of investment in mining - in spite of the economic liberalisation of 1991 the mining sector has not seen major investments.

\u2022 India has not been able to develop a
comprehensive solution to deal with
the high levels of fly ash generated at
coal power stations through the use of
Indian coals.

\u2022 Lowering energy intensity of GDP
growth through higher energy
efficiency is key to meeting India\u2019s
energy challenge, ensuring its
energy security and tackling

CO2 emissions.
\u2022 Unreliability of electricity supplies is

severe enough to constitute a
constraint on the country\u2019s overall
economic development.

Continued from page 3
India has a large
number of existing
coal-fired power
generation plants

and there is continuing rapid installation of
new units. Most have been and are being
constructed by Bharat Heavy Electricals
Limited (BHEL). The table shows recent
500 MWe units and those contracted/
under construction. These use 17.9
MPa/540\u00baC main steam conditions. All
currently operating plant use subcritical
steam conditions but a move to
supercritical conditions is beginning in
order to raise efficiency. A supercritical
station at Seepat (3x 660 MWe) is being
manufactured by suppliers from Korea and
Russia and is due to be completed early in
2009. There are also plans for a further 20
GWe of supercritical capacity, and BHEL
has associated with Alstom in order to bid
for these future supercritical
660/800/1000 MWe coal fired units.

Integrated Gasification Combined
Cycle Developments

As one route to raising the efficiency of
power generation for Indian coals, BHEL
is developing an air blown pressurised
fluidised bed gasification based IGCC
system. Last year, the process reached
an important milestone with the
achievement of a successful
uninterrupted run in the 6.2 MWe facility
at Tiruchirapalli in Tamil Nadu using
Singareni coal containing over 40% ash.
Over 100 tonnes of coal were processed
in the facility. Total test run time under
pressure now exceeds 4000 hours.
There are plans for scaling up the
process to 100-125 MWe, with the

construction of a demonstration plant at
Aurya in Uttar Pradesh.

The next step is putting together the
necessary finance for the Aurya plant,
which would be engineered and
constructed by BHEL and owned by NTPC

(National Thermal Power Corporation).

Commissioning would be at the end of
2008. There are plans to follow the
demonstration with the construction of a
commercial scale (400 MWe) plant in 2012.

Activities such as these demonstrate the commitment in India to concentrate in the short to medium term on a policy of

limiting greenhouse gas emissions through
enhancing the thermal efficiency of coal-
fired power generation by using advanced
clean coal technologies. In the longer term,
when more efficient plants have been
established, carbon dioxide capture and
storage is seen as a possible strategy to
adopt together with novel plant designs.
This is illustrated by India\u2019s membership of
the Carbon Sequestration Leadership
Forum and participation in FutureGen.

Information supplied by IEA Clean Coal
Centre: www.iea-coal.co.uk
CLEAN COAL TECHNOLOGIES IN INDIA
Recent & Contracted 500 MWe Units in India
Generating company
Site
Synchronising date
NTPC
Vindhyachal Unit 8
02/00
NTPC
Simhadri Units 1 & 2
02/02 & 08/02
NTPC
Talcher Units 3, 4, 5
01/03, 10/03, 05/04
NTPC
Rihand Units 3 & 4
01/05 & 09/05
NTPC
Ramagundam Unit 7
08/04
NTPC
Talcher Unit 6
MPEB
Birsinghpur Unit 5
NTPC
Vindhyachal Units 9 & 10
NTPC
Kahalgaon Units 5, 6 & 7
KPCL
Bellary
NTPC
Sipat Units 4 & 5
APGENCO
Vijayawada Unit 7
APGENCO
Bhoopalpally Unit 1
NTPC
Korba Unit 7
Source: BHEL, India
0
500
1000
1500
2000
2500
1971
2002
2010
2020
2030
Coal Oil Gas Nuclear Hydro Biomass & waste Other renewables
Electricity Generation (TWh) - Fuel Mix
Electricity Access
Electrification rate:
44.4%
Population without electricity (million)
582.6
Population with electricity (million)
465.9
Sources: IEA 2004 & 2005, CSLF website (www.cslforum.org),
BP 2006, EIA, Journal of Mines, Metals & Fuels 2005, Coal India &
www.indiacore.com

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