Experts at BGR Mining, a leading Indian mining company, share their views on the present and future of coal use

The disturbed regeneration-consumption cycle of coal has been under review and subject of serious discussions for decades now. Though the government has taken certain initiatives to promote the use, awareness, and potential application of renewable resources, experts such as ID Reddy, BGR Mining director, say that fossil fuels, especially coal, cannot be replaced anytime soon in spite of keeping in mind the dependency and scope of renewable counterparts.

What is the current use and status of coal?

Nearly 45% of the energy needs in India are fulfilled via coal and, apart from that, approximately 80% of the electricity generated in the country’s power sector is primarily driven by coal. And what’s worse? The Central Electricity Authority (CEA) reports claim that as of January 21, 2019, seven thermal power plants of more than 9,000 MW capacity suffered from a red level of lack of coal stocks.

Of the two types of coal, coking and non-coking, the latter is used for power generation, one of the major coal consuming activities. Reports reveal that India, being the fourth largest coal producer in the world, has been importing approximately 200 ton of coal annually for the last four years. This is how the non-coking coal demands are being fulfilled as of now.

But, why is this happening?

Almost since the last decade, power plants have become habitual to operating at bare minimum coal stocks. This is because of two factors: produced quantity of coal by senior, state-controlled companies is not balanced with the demand and transportation issues.

Focusing on the first, the authoritarian maze is leading the mining lease delay across the country. With state and center level authorities involved in the green light required for clearance and acquisition, the process faces a delay and thus, puts a substantial impact on operational efficiency.

Coming down to transport, railway infrastructure is not sufficient to facilitate the coal movement as per requirement. People have often suggested that other modes like road can be used for the same purpose, but the BGR Mining director and other experts unanimously agree that not only is the process costly, but it will further increase the pollution quotient.

Combine these two factors and it directly hits the non-power sector industries. 60 per cent of the Captive Power Plants (CPP) that were set up to meet the lack of power supply from the main grid are based on coal. Simply put, the authorities are having a hard time managing the supply of coal between power and non-power industries because of the extensive dependency.

What is the future course?

CEA officials and experts at Indian mining companies like BGR Mining and infra LTD suggest that for now, renewable sources might provide an additional hand to the current demands, but coal is going to be the paramount factor behind industrial electricity generation. Before this gets worse, it is expected that the concerned authorities will look into the management of production and availability in the country.