Daily News Analysis

COAL PRODUCTION IN INDIA

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Coal production in India is a significant part of the country's energy and industrial sectors. India has one of the world's largest coal reserves, and coal remains a crucial source of energy for power generation, as well as a key raw material for various industries, including steel and cement production.

Coal production in India is mainly overseen by Coal India Limited (CIL), a state-owned coal mining company, and various subsidiary companies. India's coalfields are primarily located in states such as Jharkhand, Odisha, Chhattisgarh, and West Bengal.

The coal industry in India faces various challenges, including environmental concerns, issues related to land acquisition, and the need for modernization and increased efficiency in mining operations. The government of India has been taking steps to address these challenges and promote sustainable coal production, while also exploring alternatives such as renewable energy sources to reduce the country's reliance on coal.

 

  1. Coal is a combustible sedimentary rock formed from ancient vegetation which has been consolidated between other rock strata and transformed by the combined effects of microbial action, pressure and heat over a considerable time period.
  2. This process of co formation is commonly called ‘coalification’.
  3. It is composed mostly of carbon (50–98 per cent), hydrogen (3–13 per cent) and oxygen, and smaller amounts of nitrogen, sulphur and other elements.
  4. It is divided into two sub-categories as:
    1. Hard Coal

  • Anthracite: Anthracite coal is a superlative coal variety renowned for its exceptional attributes, notably a high carbon composition, minimal moisture content, and a remarkable energy density. It stands as the preeminent grade of coal, distinguished by its exceptional purity and its capacity to generate substantial energy.

Its salient features include:

  1. Carbon Purity: Anthracite coal consistently boasts an impressive carbon content, typically ranging from 86% to 97%, rendering it one of the most pristine coal varieties available.

  2. Low Moisture: With its minimal moisture content, anthracite exhibits an exceptional combustion efficiency, characterized by reduced emissions and a notable absence of smoke or creosote accumulation.

  3. Superior Energy Density: Anthracite's superior energy density translates to a remarkable heat output per unit of weight, rendering it a valuable fuel source.

  4. Negligible Volatile Matter: This coal type contains only trace amounts of volatile matter, which contributes to its distinction as a clean-burning fuel source.

  5. Minimal Ash Content: The ash content in anthracite coal is notably low, resulting in reduced waste production during combustion.

Historically, anthracite coal has found extensive utility for domestic heating applications, particularly in stoves and residential heating systems. Furthermore, its deployment in industrial processes, such as the production of iron and steel, underscored its versatility. Nonetheless, its utilization has waned in recent years due to heightened environmental concerns related to coal combustion, coupled with the advent of cleaner and more sustainable energy alternatives.

 

  • Bituminous coal is a type of coal that falls between sub-bituminous coal and anthracite coal in terms of carbon content and energy density. It is characterized by a moderately high carbon content, making it a valuable energy source, and it typically contains lower moisture levels compared to sub-bituminous coal. Bituminous coal is widely used in electricity generation, industrial applications, and as a fuel for heating and steel production. It is known for its relatively clean combustion properties and versatility.

  • Coking coal also known as metallurgical coal, is a specific type of coal with properties that make it suitable for use in the production of coke. Coke is a crucial component in the steelmaking process, used in blast furnaces to convert iron ore into molten iron. Coking coal has particular attributes, including low ash and sulfur content, as well as good coking properties, which enable it to be heated in the absence of air to produce high-quality coke. It is primarily utilized in the steel industry to ensure the quality and efficiency of iron and steel production.

  • Other bituminous coalOther bituminous coal refers to bituminous coal varieties that do not fit into the standard categories of high-quality bituminous coal. These coals typically have characteristics such as moderate carbon content and energy density, and they may vary in terms of their specific properties. The term is used to encompass bituminous coals that do not meet the precise criteria of standard bituminous coal or coking coal, but they still hold utility in various industrial and energy applications, depending on their particular composition and qualities.

2. Brown coal

  • Sub-bituminous coal: Sub-bituminous coal is a type of coal that falls in the middle of the coal rank classification, between lignite and bituminous coal. It contains a higher energy content than lignite but lower than bituminous coal. Sub-bituminous coal has a carbon content ranging from 45% to 60% and is characterized by relatively low moisture and sulfur content. It is commonly used for electricity generation due to its moderate energy density and lower environmental impact compared to higher-rank coals.

  • LigniteLignite, often referred to as brown coal, is a type of coal that represents the lowest rank in the coal classification system. It is characterized by its relatively low carbon content, high moisture content, and low energy density. Lignite is soft, brownish-black in color, and has a woody texture. Due to its high moisture and low carbon content, it tends to produce lower energy when burned compared to higher-ranking coals. Lignite is primarily used for electricity generation in power plants and is abundant in some regions, but it is less energy-efficient and has a higher environmental impact compared to other coal types.

  1. The all India coal production in the year 2021-2022 has witnessed a growth of about 8.67% compared to the last year.
  2. In the year 2020-21, the highest coal production list is occupied by:
    1. Chhattisgarh (22.12%)
    2. Odisha (21.53%)
    3. Madhya Pradesh (18.51%)
    4. Jharkhand (16.66%)
  3. Tamil Nadu was the largest producer of lignite with Neyveli Lignite Corporation as the main producer.
  4. Coal India Limited produced 83.26% of total coal production in the country.
  5. 95.64% of coal production in India was from Open Cast mines and the rest 4.36% was from Under Ground mines.
  6. India has high geological reserves of non-coking coal compared to reserve of coking coal (prime, medium and semi-coking).
  7. Coal was mainly imported from Indonesia, followed by Australia, South Africa, USA, Russia, Singapore and Mozambique.

Import of Coal 

In accordance with the prevailing import policy, the importation of coal is permissible under the Open General License, allowing consumers to engage in unrestricted coal imports, guided by their specific operational requirements and commercial considerations.

The steel sector primarily engages in the importation of coking coal with the principal objectives of addressing the disparity between demand and domestic supply, as well as enhancing coal quality. Additionally, other sectors such as the power industry, cement manufacturing, and coal trading entities partake in the importation of non-coking coal.

Details of import of coal and products i.e. coke as per Ministry of Coal during the last four years including the current year is as under:

(Million tonnes)

COAL

2019-20

2020-21

2021-22

2022-23

2023-24*

Coking Coal

  51.83 51.20   57.16

56.05

20.89

Non-Coking Coal

196.70 164.05 151.77 181.62 67.08

Total Coal Import

248.53 215.25 208.93 237.67 87.97

Coke

2.88 2.46 2.48 3.63 1.38

*Import upto July, 2023  (Source:-DGCI&S) 

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