Coal Demand & Supply in IndiaPresentation Transcript
Demand and Supply of Coal
Industry Information Insights 2014
Rewave Infra Solutions EnergySector.in
Table of Contents
Coal Reserves 3
Coal Production 6
Coal Imports 10
Coal Consumption 12
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
At the time of Independence, the known coal resources
of India were 37.11 billion tonnes down to a depth of 600
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
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.
1.4.2007 1.4.2008 1.4.2009 1.4.2010 1.4.2011 1.4.2012 1.4.2013
Trends in Coal Reserves
CAGR = 2.52%
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
Out of total coal reserves, 41% are proved coal reserves,
48% are indicated coal reserves and remaining 11% are
Proved Indicated Inferred
Total Coking Non Coking Tertiary Coal
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
At the beginning of the 1st Plan, annual production went
up to 33 MT.
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.
Year-wise Coal Production Trend
Coal Production: Company-wise
Out of coal blocks allotted, only 38 blocks have started
production and another 10 coal blocks are nearing
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.
2008-09 2009-10 2010-11 2011-12 2012-13
Coking Coal 21.08 24.69 19.48 31.80 32.56
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
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.
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%.
2008-09 2009-10 2010-11 2011-12 2012-13
Gross Coal Imports
Coal Consumption in India
Sector-wise Coal Consumption
Power generation is the largest consumer of coal in
India, followed by iron & steel and cement.
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 &
Just ask us your queries!
Updated data & stats
Promote your events
Increase your brand
Write guest articles
Your ad in website, newsletter
Industry news updates
FREE monthly newsletters
Company & projects tracking
Information is the key to success
Rewave Infra Solutions
133-D, Mayur Vihar Phase - II
Delhi – 110 091 (India)