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Shedding Light on Some Unknown Facts of Coal Importers in India
Coal is appositely titled as the magical mineral, as it is one of the very few or the most widely
preferred minerals available on the earth that has found a wide range of extensive industrial
applications. This carbon fossil has been used in a comprehensive manner right from its inception
and is undoubtedly the most powerful and largest energy source of the entire world. This natural
resource has gradually emerged as one of the most significant and useful environmental assets by
successfully proving its role and function in a wide range of manufacturing processes as well as
electricity production as a fuel.
As per the global statistical evidence, India is known to be having the fourth-largest coal reserves of
the whole world and hence, is envisioned to be a tough competitor when it comes to dealing with
global coal business. But, the increase in the establishment of a significant number of coal importers
in India along with the consistent rise in the Indian coal imports seems to be ironical with the fact
that India ranks among the top five coal reserves of the world. And, the major reason for this is the
improper utilization of all the available nationwide reserves of coal and also ineffective strategies
laid down by the government and allied industries.
The factors such as issues related to environmental clearance, complications allied to rehabilitation
measures, various movements against government by the Naxalites, etc are the major hurdles that
form a big set-back in effective and efficient utilization of the coal reserves in India. And, since most
of these chief coal reserves either lie in the red-belt region (Naxal region) or in the areas not easily
feasible for mining; the power plants established in the nearby areas face a constant threat and
asymmetrical supply of coal resulting in a significant negative impact on the proper functioning of
the plant.
With such issues emerging at a faster rate and forming a major block in the supply of coal, there has
been a significant implication in the advent of a number of coal importers in India. Also, due to a
wide range of critical issues coming up day-by-day such as those related to transportation or the
mining ones; there has been a consistent threat related to the irregular supply of coal. In addition to
the above factors the delay in the environmental clearance of the already allotted coal blocks
coupled with the wide range of challenges associated with domestically available coal varieties has
greatly aided in the growth and demand of imported coal varieties.
Of all the major applications of coal varieties, its use in power plants is the most crucial and
significant one. But, to satiate the current coal needs of these electrical as well as other coal needed
industries; clients are increasingly aiming at the import of coal as a better and efficient option satiate
their coal needs and ensure smooth functioning. With more and more captive coal blocks being
clogged-up at the pre-implementation stage and the dire need of companies to fulfil their previously
set service commitments; the implication of coal importers in India is seen as the most influential
and apt measure. The countries that form the first priority for import of coal are Australia, Indonesia,
South-Africa, China, etc.

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Shedding Light on Some Unknown Facts of Coal Importers in India.docx

  • 1. Shedding Light on Some Unknown Facts of Coal Importers in India Coal is appositely titled as the magical mineral, as it is one of the very few or the most widely preferred minerals available on the earth that has found a wide range of extensive industrial applications. This carbon fossil has been used in a comprehensive manner right from its inception and is undoubtedly the most powerful and largest energy source of the entire world. This natural resource has gradually emerged as one of the most significant and useful environmental assets by successfully proving its role and function in a wide range of manufacturing processes as well as electricity production as a fuel. As per the global statistical evidence, India is known to be having the fourth-largest coal reserves of the whole world and hence, is envisioned to be a tough competitor when it comes to dealing with global coal business. But, the increase in the establishment of a significant number of coal importers in India along with the consistent rise in the Indian coal imports seems to be ironical with the fact that India ranks among the top five coal reserves of the world. And, the major reason for this is the improper utilization of all the available nationwide reserves of coal and also ineffective strategies laid down by the government and allied industries. The factors such as issues related to environmental clearance, complications allied to rehabilitation measures, various movements against government by the Naxalites, etc are the major hurdles that form a big set-back in effective and efficient utilization of the coal reserves in India. And, since most of these chief coal reserves either lie in the red-belt region (Naxal region) or in the areas not easily feasible for mining; the power plants established in the nearby areas face a constant threat and asymmetrical supply of coal resulting in a significant negative impact on the proper functioning of the plant. With such issues emerging at a faster rate and forming a major block in the supply of coal, there has been a significant implication in the advent of a number of coal importers in India. Also, due to a wide range of critical issues coming up day-by-day such as those related to transportation or the mining ones; there has been a consistent threat related to the irregular supply of coal. In addition to the above factors the delay in the environmental clearance of the already allotted coal blocks coupled with the wide range of challenges associated with domestically available coal varieties has greatly aided in the growth and demand of imported coal varieties. Of all the major applications of coal varieties, its use in power plants is the most crucial and significant one. But, to satiate the current coal needs of these electrical as well as other coal needed industries; clients are increasingly aiming at the import of coal as a better and efficient option satiate their coal needs and ensure smooth functioning. With more and more captive coal blocks being clogged-up at the pre-implementation stage and the dire need of companies to fulfil their previously set service commitments; the implication of coal importers in India is seen as the most influential and apt measure. The countries that form the first priority for import of coal are Australia, Indonesia, South-Africa, China, etc.