India’s coal block
Makarand Gadgil
Despite having the fourth largest reserves of coal the Indian power sector continues to starve for this black gold. An acute fuel shortage is crippling its growth. Even if the government manages to achieve the capacity addition target of 62,000 Mw in the 11th plan, fuel availability will continue to be a hurdle causing plants to run at less than 100 per cent plant load factors (PLF). India’s estimated coal reserves are 264 billion tonnes (bt), of which a little over 100 bt are proven reserves. These reserves are spread across 27 coalfields, with thermal grade coal forming over 80 per cent of these reserves.
The Indian power sector is expected to face a shortage of 41 million tonnes (mt) during current financial year, and 74 mt by the end of 11th five year plan i.e., 2012, according to a Central Electricity Authority (CEA) estimate.
Considering the fact that out of the total installed capacity of 1,50,323 Mw, around 52 per cent or 78,459 Mw is coal-based and out of the one lakh Mw addition envisaged in 12th five year plan, nearly 74,000 Mw will come up in thermal sector, coal will be remain the anchor fuel for the Indian power sector in foreseeable future. Says S Seshadri, member thermal at CEA, “There can be no two ways about the need to increase coal production dramatically considering that coal will be the main stay of the Indian power sector for a long time to come.”
According to the projections of the Planning Commission’s working group on coal, the supply of domestic coal will reach 493 mt by 2012 while demand is expected to exceed supply by 238 mt. Using imported coal to bridge the gap may not be a long term solution. Says Gireesh Pradhan additional secretary ministry of power and chairman Damodar Valley Corporation (DVC), “At times PSUs like NTPC and DVC go up to 15 to 20 per cent of blending but going beyond this limit is not really possible as it would cause extensive damage to the machinery.” Adds Seshadri: “A 10 per cent blend is best suited for Indian power plants.”
The calorific value of Indian coal is around 3500 kilo calories /per kilogram of coal (kcl/kg), where as imported coal’s calorific value varies between 5,000 kcl/kg to 6,000 kcl/kg depending on whether it is imported from Indonesia or Australia. Import hurdles But coal of a higher calorific value also means less coal for burning. For instance, NTPC is planning to replace 20mt of its requirement of 150mt requirement this year with 12.5 mt of imported coal of higher calorific value. But the hurdles in importing coal – mainly higher cost and inland transportation from the ports as well as risk factors associated with imported fuel – seem to outweigh the benefits. As a result, the pressure on Coal India to increase its production is rising – Coal India and Singareni Colliery Company Ltd together account for more than 90 per cent of the supply of coal in the country have talked of expanding production from the present level of around 379 mt to 520 mt by 2012 and 664 mt by 2017, the end of 12th plan.
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