Coal related report

According to TERI(the energy research institute)

·       Coal accounts for > 50% in India’s energy mix

·       Delay in clearances and tightening of environmental norms create problem for coal sector

·       Import of coal scenario: 83 million tonnes(current fiscal), 142 million tonnes(next fiscal)

·       Amidst tight global supplies and price rise, the ability to import large quantities could be restricted

·       India has followed the ISP(Indian Standard Procedure Code) to assess coal inventory

·       ISP code is based on the geological evaluation of resources without assessing the quality, mineability or extractability of deposits

·       Total coal inventory: 276.81 billion tonnes

·       Proven coal inventory: 0.4 * 276.81= 110 billion tonnes

·       Extractable : 55 billion tonnes

·       At the current rate of production 550 million tonnes per annum, coal reserve will last for around 100 years

·       Considering increasing rate of production, coal might last within next 50 years.

CIL status:

·       Total inventory : 65 billion tonnes

·       Feasibility studies for : 30.4 billion tonnes

·       Extractable reserve : 21.8 billion tonnes

Ø  Tighter environmental regulations forced the world’s largest coal producer to revise downward its output target twice during the fiscal

Ø  TERI suggests UNFC(the United Nations Framework Classification)

UNFC’s method includes several parameters which are (among others):

·       Geological parameters

·       Economic and commercial viability

·       Field project status

·       Feasibility in arriving at the inventory

Ø  Government decided to apply UNFC in 2001, not yet applied

Ø  One of the reasons for not applying UNFC is time consuming process of UNFC’s methods

Chemical properties of coal are :

·       Ash

·       Moisture

·       Volatile matters

Physical parameters are:

·       Caking index

·       Coke type

·       Swelling index

Reserves :

·       Coking coal: 33.7 billion tonnes

·       Non coking coal: 258 billion tonnes

·       Tertiary coal : 1.5 billion tonnes

Ø  In NCV(net calorific value),  the heat contained in water is not recovered

Ø  In GCV(gross calorific value), the heat contained in water is recovered

Ø  Under the new norm, to be made effective from April, BCCL would be charging 20% less than the landed cost of imported coal of equivalent gross calorific value, against 30% earlier.

Ø  SAIL imports close to 80% of its total coking coal requirement of about 14 million tonnes  

Ø  The price increase by Coal India will apply to only around 3 million tonnes