Coal Demand & Supply in India
Upcoming SlideShare
Loading in...5
×
 

Coal Demand & Supply in India

on

  • 977 views

 

Statistics

Views

Total Views
977
Slideshare-icon Views on SlideShare
977
Embed Views
0

Actions

Likes
0
Downloads
62
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Coal Demand & Supply in India Coal Demand & Supply in India Presentation Transcript

    • Demand and Supply of Coal in India Industry Information Insights 2014 Rewave Infra Solutions EnergySector.in
    • Table of Contents Coal Reserves 3 Coal Production 6 Coal Imports 10 Coal Consumption 12 2
    • Coal Reserves After nationalisation of coal mines in 1973, detailed coal exploration work on a large scale was initiated by Coal India Limited (CIL) through its subsidiary, Central Mine Planning & Design Institute (CMPDI). Detailed exploration carried out by CMPDI and its agencies have increased proved reserves from 21.3 billion tonnes in 1972 to 123.18 billion tonnes in 2013. India has the fifth largest coal reserves in the world. Although it has the fifth largest reserves of coal in the world, it is not able to meet its domestic demand. Indian coal is characterized by high ash content and low sulphur content. At the time of Independence, the known coal resources of India were 37.11 billion tonnes down to a depth of 600 m. At the time of nationalisation in 1973, the task force of the Planning Commission estimated a total reserve of 81 billion tonnes (out of which 61 billion tonne was non- coking), for seams of thickness 1.2 m and above and down to a depth of 600 m. As on Proved Indicated Inferred Total (BT) 1.4.2007 99.060 120.177 38.144 257.381 1.4.2008 101.829 124.216 38.490 264.535 1.4.2009 105.820 123.470 37.920 267.210 1.4.2010 109.798 130.654 36.358 276.810 1.4.2011 114.002 137.471 34.389 285.862 1.4.2012 118.145 142.169 33.183 293.497 1.4.2013 123.181 142.632 33.101 298.914 3
    • Coal Reserves Major coal bearing states in India include Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh and Andhra Pradesh. From 2007 to 2013, total coal reserves in India increased at a CAGR of 2.52%. So far, a total of 298.914 billion tonnes of geological resources of coal have been estimated in India, up to the maximum depth of 1200 metre. Out of the total resources, the Gondwana coalfields account for 297.421 BT (99.5%), while the Tertiary coalfields of Himalayan region contribute 1.493 BT (0.5%) of coal resources. 257.381 264.535 267.210 276.810 285.862 293.497 298.914 230 240 250 260 270 280 290 300 310 1.4.2007 1.4.2008 1.4.2009 1.4.2010 1.4.2011 1.4.2012 1.4.2013 BT Trends in Coal Reserves CAGR = 2.52% 4
    • Coal Reserves Type-wise Coal Reserves Of the total reserves, nearly 88% are non-coking coal reserves, while tertiary coals reserves account for a meager 0.5 % and the balance is coking coal. India has very limited reserves of coking coal which is a key raw material for the production of steel. Coking coal accounts for only 15% of India’s overall proven coal reserves. The Jharia coalfield, located in the state of Jharkhand, holds the majority of the coking coal reserves. Out of total coal reserves, 41% are proved coal reserves, 48% are indicated coal reserves and remaining 11% are inferred reserves. 41% 48% 11% Proved Indicated Inferred 11% 88% 1% Total Coking Non Coking Tertiary Coal 5
    • Coal Production During the first 25 years of independence, growth in the coal production was very slow. From a level of around 30 million tonnes (MT) at the time of independence, coal production increased to only 73 MT in 1970-71. India is the third largest coal producing country in the world after China and USA. History of Coal Production India was producing 6.12 MTPA of coal by 1900 and 18 MTPA by 1920. The production got a sudden boost from the First World War but went through a slump in the early thirties. The production reached a level of 29 MT by 1942 and 30 MT by 1946. At the beginning of the 1st Plan, annual production went up to 33 MT. 1900 6.12 MT 1920 18 MT 1942 29 MT 1946 30 MT 1951 33 MT 1971 73 MT 6
    • Coal Production: Year-wise Currently, the government enjoys a monopoly in producing coal with over 90% of the production coming from government controlled mines. The policy for captive mining, introduced in 1993, opened the coal sector to private investment, however limited progress has been made in the captive coal blocks allotted by the government. 88% of coal is produced from opencast mines and 12% from underground mines. The production of coal increased from a level of about 70 million tonnes at the time of nationalization of coal mines in early 1970's to 557.6 million tonnes in 2012-13. The country’s coal production has increased from 457 MT in 2007-08 to 557.6 MT in 2012-13. 0 MT 100 MT 200 MT 300 MT 400 MT 500 MT 600 MT Year-wise Coal Production Trend 7
    • Coal Production: Plan-wise 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 0 100 200 300 400 500 600 1955-56 1960-61 1965-66 1973-74 1978-79 1984-85 1989-90 1996-97 2001-02 2006-07 2011-12 %MT Terminal Year of FYP Plan-wise Coal Production Production (MT) CAGR (%) 8
    • Coal Production: Company-wise Captive Blocks Out of coal blocks allotted, only 38 blocks have started production and another 10 coal blocks are nearing production. The combined production of coal from these blocks was only 36.167 MT in 2012-13. Coal India Limited (CIL) CIL is the single largest coal producer in the world. It produces around 81% of India's overall coal production, thus enjoy a near monopoly in the sector. Two of the subsidiary companies of CIL, South Eastern Coalfields Limited and Mahanadi Coalfields Limited produce more than 100 million tonnes of coal. Singareni Collieries Company Limited (SCCL) SCCL is the main source for supply of coal to the southern region. The company produced 53.19 million tonnes of coal during 2012-13, which is 10% of India’s total coal production. CIL Total 81% SCCL 10% Others 9% 9
    • Coal Import 2008-09 2009-10 2010-11 2011-12 2012-13 Coking Coal 21.08 24.69 19.48 31.80 32.56 Non-coking Coal 37.92 48.56 49.43 71.05 105.00 Coke 1.88 2.35 1.49 2.36 3.07 Total Import 60.88 75.60 70.40 105.21 140.63 As per the present Import policy, coal can be freely imported under Open General License by the consumers themselves considering their needs based on their commercial prudence. Coking Coal is imported by Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Coat based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders import non-coking coal. Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel sector consumers using mini-blast furnace. Country-wise Coal Imports In India, majority of coal is imported from Indonesia, Australia and South Africa. India is mainly dependent on Indonesia and South Africa for import of thermal coal and on Australia for coking coal. However, the new regulatory policies in these countries are increasing coal prices. This necessitates the requirement of intensive efforts in identifying new avenues for supply like Mozambique and others. Indonesia 56% Australia 21% South Africa 14% Others 9% 10
    • Coal Import Even some of the India’s large power producers have shown a greater tendency to rely on imported coal to an extent despite the fact that domestic coal blocks have been allotted to most of their projects. Presently, India ranks fourth in the coal import demand, being led by Japan. Import of coal in India started in 1980-81 when only 0.55 MT was imported. India is not able to meet its coal demand and import of coal from other countries has become inevitable. Although India has the fifth largest reserves of coal in the world, it is not able to meet its domestic demand. Since FY2009 to FY2013, India’s coal import has grown at a CAGR of 25.38%. 59.003 73.255 68.918 102.850 145.8 0 20 40 60 80 100 120 140 160 2008-09 2009-10 2010-11 2011-12 2012-13 MT Gross Coal Imports 11
    • Coal Consumption in India Power 71% Iron & Steel 11% Cement 4% Others 14% Sector-wise Coal Consumption Power generation is the largest consumer of coal in India, followed by iron & steel and cement. 12
    • 13 Premium Knowledge Base Focused Research Industry Reports Digital Marketing Info+ Knowledge Base  Easy annual subscription  Free registration & community  Instant & unrestricted access  Statistics, data sheets, dashboards, reports, policy documents and much more…  100% Money Back Guarantee Research & Consulting  Market & business research  Industry strategic analysis  Customized data, reports & analysis  Just ask us your queries! Industry Reports  In-depth understanding  Ongoing trends  Unlock opportunities  Updated data & stats Advertisements  Promote your events  Increase your brand awareness  Write guest articles  Your ad in website, newsletter and email Information Advantage  Industry news updates  FREE monthly newsletters  Company & projects tracking Information Solutions
    • Information is the key to success Phone: +91-95603-66515 E-Mail: mail@energysector.in Rewave Infra Solutions 133-D, Mayur Vihar Phase - II Delhi – 110 091 (India) 14