INDIAS COAL CONUNDRUM

Spurring Growth vs. Energy Security vs. Environmental Sustainability

Demand for Coal

A: Sector-wise Usage

Power 70%

Steel 6%

Sponge Iron 4%

Cement 4%

Others 16%

SOURCE: CCO 2011

B: Projected Demand

Demand for coal will more than double in the next 20 years. Estimated to
reach 880 Mtoe by 2035
SOURCE: CEEW

Domestic Production

Poor Exploitation of the Total Reserve Base: 80% of the total

domestic production comes from a mere 1/6th of the total
proven reserves (under CIL)

CIL
CIL
DOMESTIC COAL PRODUCTION

SOURCE: MOC 2012; CMPDI 2011

SHARE OF RESERVES

639 km: Average distance for which every tonne of coal is hauled by rail

The Chhota Nagpur

Plateau area spread
across six states
accounts for more
than 90% of Indias
coal reserves

47% of all goods traffic in the railway network is coal

SOURCE: CEEW

SOURCE: INDIAN RAILWAYS 2012

Low Plant Load Factor of Power Plants: 13.7 Billion

Units of power generation (or 1.5% of the total) lost due
to shortage of coal
SOURCE: CEA 2012

Domestic production stagnating at ~550 MT for the last

four years
For the last 15 years the Coal Mines Amendment Bill,
allowing private players to sell in the market, has been
in discussion

SOURCE: CCO 2012

PRODUCTION

600 MT
550 MT

500 MT
2009 - 10

2010-11

2011-12

2012-13

Open-cast mining has seen a near doubling in

output in the last decade with underground mining
seeing a decrease in production
Open-cast mining has a far higher detrimental
impact on air, water and land resources
SOURCE: CCO 2012

INDIAS COAL CONUNDRUM

Spurring Growth vs. Energy Security vs. Environmental Sustainability

Infrastructural Constraints

New mines with large production capacity not exploited

for want of connectivity: 3 mines with potential of 300 MTA are
stranded due to multiple challenges

Lack of co-ordination and implementation capacity on part of

States, Ministry of Environment and Forests (MoEF), Ministry of
Coal, Indian Railways (IR) are the main reasons for this
SOURCE: GoI 2014

Average annual growth

rate of less than 1% in
track kilometres and a
slower pace of
electrification

Freight density has

doubled in the last decade
and average train load has
increased by 50%

Depending on grade of coal,

transportation costs can
account for up to 50% of the
total delivered cost of coal

SOURCE: INDIAN RAILWAYS

SOURCE: CEEW

SOURCE: INDIAN RAILWAYS

$$$$$$$$$

Import Dependency

Indonesia, Australia and South Africa meet 90% of

Indias imported coal demand
SOURCE: UN COMTRADE

$$$$$$$$$

Over the last seven

years, coal imports
have nearly
quadrupled
SOURCE: UN COMTRADE

Quality of coal from

Indonesia to get poorer
in the future
SOURCE: CEEW

Current coal
import bill of nearly
USD 15 Billion is
more than 3% of
the total import bill
Price of imported
coal is is nearly
three times that of
domestic coal
SOURCE: CEEW