OVERVIEW | OPPORTUNITIES
Coal
SIZE
Coal is the backbone of the Indian Energy Sector
78% of the coal mined is used in electrical power generation
Source for about 54% of the electricity generated
India has large coal reserves estimated at 253 billion tonnes, (96 billion tonnes proven reserves)
Fourth largest proven coal reserves in the world
Third largest coal producer in the world - production of 432 million metric tonnes in 2006-07
The Ministry of Coal has identified 143 blocks with about 11% of the total coal reserves for captive use (i.e. power generation, steel plants) of which 123 coal blocks have been allotted
STRUCTURE
Coal Mining is predominantly a public sector activity - Coal India Ltd. (CIL) accounts for 85% of total coal production
Limited private sector participation, primarily captive mines for steel plants (such as Tata Steel) and for power generation
POLICY
Private sector participation is currently restricted to captive coal mines or coal processing for captive mines
Merchant sale of coal is not permitted, all sales are through CIL
Government likely to allow competitive bidding for mining leases
100% FDI allowed under the automatic route for coal and lignite mining for
captive consumption
Major players in coal mining
Name of Company Production
CIL (Public Sector)
363
SCCL (Public Sector)
37.5
Captive Collieries
31.2
Total 432
OPPORTUNITY
India has the 4th largest coal reserves in the world
India is focusing on setting up infrastructure for offtake of mined coal
OUTLOOK
Demand for coal expected to increase to 730 MMT p.a. by 2011-12
Current shortage of coal is expected to increase to over 50 MMT
by 2011-12
POTENTIAL
Availability of large reserves suitable for thermal power generation could be used for power plants and metal manufacturing
The coal sector is expected to grow rapidly, driven by the increasing, gap between power supply and demand due to rapid economic growth
9 coal-fired Ultra Mega Power Projects planned over the next 5 years could utilise over 40 MMT PA of coal
4 captive coal plants will each consume over 15 MMTPA of domestically
mined coal
5 coastal plants will each need over 11 MMTPA imported coal
Need for improved technology, higher production and better productivity at existing mines
A US$10-15-billion investment opportunity over the next 5 years to:
Explore and develop new coal mines
Manufacture and sell state-of-the-art mining equipment and technology
Create related infrastructure for efficient channelisation of
mined coal
For additional information:
Ministry of Coal (http://coal.nic.in ),
Coal India Ltd. (http://www.coalindia.nic.in )
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