This document discusses India's lignite sector, including reserves, production, consumption, and power plants. It notes that India has estimated lignite reserves of 43 billion tonnes, with the largest reserves located in Tamil Nadu. Lignite production has increased at a 5.97% annual rate over the last decade. Approximately 75-80% of lignite produced is used for power generation. India has over 5,000 MW of installed lignite-based power generation capacity located primarily in Tamil Nadu, Gujarat, and Rajasthan. Key issues facing India's lignite mining include its geographic confinement, economic viability challenges due to low energy content and high moisture, and reliance on open-cast mining methods.

1. Lignite Sector in India
Industry Information Insights 2014

2. Table of Contents
Introduction
Lignite Reserves
Lignite Production
Lignite Consumption
Lignite Based Power Plants
Issues In Lignite Mining

3. Introduction
Lignite,alsoreferredasBrowncoal,isthelowestrankofcoal.Itisidentifiedbyitsbrownish- blackcolorandtexture.Itissoft,hasawoodystructureanddisintegratesondrying.
Ligniteischaracterizedbylowheatcontent,highpercentageofmoisturecontent,rangingfrom30-50%withhighoxygencontent.
Itisformedduetobio-decayofvegetation,metamorphismandothergeologicalprocessesoverthousandsofyears.IntheseprocessesvegetationisconvertedtoPeat–Lignite- BituminousCoal–AnthraciteCoal.
UnlikeCoal,Ligniteisnottradedinanysignificantextentinworldmarkets,becauseofitsrelativelylowheatcontent(whichraisestransportationcostsonunitEnergycontentbasis) andotherproblemsrelatedtotransportandstorage.Ligniteisextensivelyusedasafuelinpitheadthermalpowerplantsandindustriesnearby.

4. Lignite Reserves
Indiahasestimatedlignitereservesof43billiontonnesason31March,2013.
LignitedepositsinIndiaisconfinedtostatesofTamilNadu,Rajasthan,Gujarat,Pondicherry, Jammu&KashmirandKeralawherecoalisalmostabsent.
State
Proved
Indicated
Inferred
Total (BT)
Tamil Nadu
3.74
22.90
7.71
34.35
Rajasthan
1.17
2.67
1.85
5.69
Gujarat
1.28
0.28
1.16
2.72
Pondicherry
0.00
0.41
0.01
0.42
Jammu & Kashmir
0.00
0.02
0.01
0.03
Kerala
0.00
0.00
0.01
0.01
West Bengal
0.00
0.00
0.00
0.00
Total
6.19
26.28
10.75
43.22

5. Lignite Production
LigniteproductioninIndiawasfirststartedatNeyveliinTamilNaduduring1961-62.
InIndia,ligniteproductionhasincreasedat5.97%CAGRinlasttenyears.NeyveliLigniteCorporation(NLC)andGujaratMineralDevelopmentCorporationLimited(GMDCL)aretwomajorligniteproducingcompanies.
26.02
27.96
30.34
30.23
31.29
33.98
32.42
34.07
37.73
42.33
46.47
0
5
10
15
20
25
30
35
40
45
50
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
MT

6. Lignite Consumption
Ligniteismostlyconsumedforpowergeneration.About75%to80%oftotalligniteminedisusedbyelectricitysector.Thetablebelowgivesindustry-wiseconsumptionofligniteforpastsixyears.
Year
Electricity
Cement
Paper
Cotton
Others
Total
2005-06
23.36
0.79
0.23
1.11
4.86
30.34
2006-07
23.92
0.77
0.22
0.84
5.06
30.80
2007-08
26.76
0.96
0.35
0.77
5.83
34.66
2008-09
25.71
0.01
2.46
6.01
31.79
2009-10
28.14
0.38
1.82
4.09
34.43
2010-11
29.90
0.36
2.56
1.18
6.25
37.69
2011-12
32.06
1.01
0.06
1.24
8.74
41.88

7. Lignite Based Power Plants
Indiahas5110MWoflignitebasedpowergenerationcapacity.Allthepit-headpowerplantsarelocatedinTamilNadu,GujaratandRajasthan.Listofpowerplantsisgiveninthebelowtable.
Name
State
Capacity (MW)
Sector
Owner
Neyveli TPS II
Tamil Nadu
1470
Central
NLC
Jallipa-Kapurdi TPP
Rajasthan
1080
Private
JSW
Neyveli TPS I
Tamil Nadu
600
Central
NLC
Surat Lignite
Gujarat
500
Private
GIPCL
Neyveli TPS I Ext
Tamil Nadu
420
Central
NLC
Kutch Lignite
Gujarat
290
State
GSECL
Akrimota Power Plant
Gujarat
250
State
GMDC
Barsingsar TPS
Rajasthan
250
Central
NLC
Giral Lignite TPS
Rajasthan
250
State
RRVUNL

8. Issues In Lignite Mining
LigniteReservesConfinedToFewStates
Transportationoflignitetoofaroffplacesisnotdesirableasitispronetospontaneousignition.Hencedevelopmentofligniteminesandlignitebasedthermalpowerstationshavetobeconfinedtotheseregions.
DifficultEconomicViability
Becauseoflowheatvalueofligniteandhighmoisturecontent,higherproductivityhastobeachievedintheopencastmineswithacompulsorypitheadlinkagetomakeligniteminingeconomicallyviable.
OpencastMiningMethodOnly
Atpresentopencastminingisbeingadoptedforligniteproductionthroughouttheworld. Undergroundminingisnotfollowedduetoweakroofandfloorcondition,spontaneouscombustionnatureoflignite,existenceofhighpressureaquifersystembelowlignite.

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