NEW GLOBAL INDIAN
` Our coal reserves are expected to last over 100 years’
Written by Shekhar Srivastava Monday, 23 January 2012 06:47
Share this post
Indian coal consumption is mainly being driven by the power sector and the demand is outstripping the supply. There is a fear that with more power plants coming in the next decade it could deplete the coal reserves of India. What is your opinion?
With the current production level of around 550 million tonnes our coal reserves are expected to last over 100 years and there should not be any fear of depletion of reserves due to installation of more number of power plants in future.
Many power sectors have partially shut down for want of coal, the Coal ministry is often blamed for this. Is it justified?
The blame is unjustified. Power is a priority sector and as per the annual contracted quantity (ACQ)/ allocation, coal is being supplied to power plants. However, due to production constraints, Coal India Limited/Singareni Collieries Co. Ltd. is not able to meet 100% of the normative requirement. Hence, coal is imported to bridge the gap between demand and supply.
Coal is projected to be the main resource for power generation in India in short to medium term. How will the coal ministry help in meeting the growing demand?
A number of new coal projects are being taken up in the public sector coal companies and government had also allotted 195 coal blocks to both public and private firms for captive purposes and there is a huge potential of more than 400 million tonnes from these blocks.
Indian mines are said to have higher accident and fatality rate as compared to those in the US and South Africa. What is being done to increase the safety of the miners?
Safety is of paramount importance. Director General of Mines Safety under Ministry of Labour & Employment is responsible to ensure compliance of provisions of safety legislations in coal mines and companies are responsible for conducting the mining operations in keeping with safety legislations. Internal Safety organizations, Committees with the management of coal companies, trade unions and DGMS officials regularly monitor the status of safety and health of workers in coal mines. A Standing Committee under Minister of Coal monitors the safety and health issues of workers in coal mines. The most important aspect of improving safety in mines is promoting self-regulation. Risk assessment and management is a step towards improving the safety of operations. Coal companies have been advised to adopt mechanization and avoid manual workings in their mines. All new mines are being planned with appropriate mechanization for improving safety, production and productivity.
With oil prices continuously spiraling, how do you see the future of coal energy?
In line with the spiralling oil prices, coal prices are also likely to be volatile in international markets. However, coal is the mainstay of India's energy and is the only fuel which is abundantly available in the country and we need to develop the same with due regard to environment in addressing our rising energy issues.
The Coal ministry seems to be at loggerheads with the Environment ministry. What are the vexed issues?
Ministry of Coal has been taking up the various issues related to environment and forest clearances with MoEF with an intention to fast-track the clearances and streamline the procedures.
The Environment ministry has put a ban on mining in the forest areas. How is this affecting the coal ministry?
MoEF did not put any ban on mining in the forest areas. However, they suggested an approach to classify the forest areas as Go and No-Go areas based on certain parameters like density of forest cover. However, the Group of Ministers addressing the issue of environment and development of infrastructure projects have recommended to do away with the classification of Go and No Go forest areas and directed MoEF to consider all the proposals for forest clearance on their merits.
Power ministry seems to be unhappy that the Coal India Limited has failed to supply sufficient thermal coal to the power sector under its commitment. What is being done in this regard?
In view of the production constraints during April-September, 2011, on account of incessant rains and some strike in Singareni Collieries, etc. the coal supply to power sector got adversely affected as a result of which the stock position at thermal power plant end came down drastically. However the situation started improving from November onwards.
It is alleged that CIL has not signed any Fuel Supply Agreement (FSA) in the past two years with any power developer as the company wants to bring down he fuel guarantee clause from 90% to 50%.What is your take?
Coal India Ltd. in their model Fuel Supply Agreement suggested supply of coal up to 50% through indigenous sources and balance 50% through imports, if feasible. Since this clause was not acceptable to the power sector, most of the power utilities did not sign FSA except a few. However, the ministry is reviewing the situation.
One of the main complaints by thermal plants is that their efficiency gets affected due to poor quality of coal. What are your remedial plans?
Government has decided to switch over from the existing Useful Heat Value (UHV) based grading and pricing of non-coking coal to Gross Calorific Value (GCV) based system. The emphasis is also laid on supply of washed coal by taking up new washeries in CIL and in private sector.
