This document discusses India's growing fuel gap as coal-fired power capacity is expected to increase substantially over the next 5 years. Coal currently supplies over 75% of India's power generation but domestic coal production is struggling to keep up with demand. As a result, the gap between projected coal demand for power projects and projected domestic coal supply is expected to widen from 21 million tons in 2007-2008 to over 90 million tons, threatening the viability of many planned coal-fired power projects unless solutions are found. Potential solutions discussed include increasing captive coal mining, implementing coal sector reforms, and allowing commercial coal mining.

1. Fuel Gap
Priyank Jain

2. Introduction
• Coal-fired plants will contribute over 80% of
the purposed capacity addition in the next five
years.
• Short supply remains the key hurdle in the
coal-based capacity addition.
• Industry players say that this is a short-term
bottleneck and can be addressed at policy
level.

3. Challenges
Fuel
supply
Import
dependency
Increasing
need
Uncertainty
Impact on
financing

4. Capacity
• 56%
• CAG growthof 7.2%(06-
11) in generation
capacity
Coal
based
• 2007-08 78.91%
• 2010-11 75.37%
PLF

5. Present scenario
• 11th plan 34,000 MW + of coal based capacity addition
which is 82% of revised target. (+4000MW).
• 12th plan target 62695 MW .
• UMPP could be commissioned much ahead of the
schedule.
• Shifting towards higher unit rating of 660MW and
800MW based on supercritical technology.

6. Technology & Benifits
Super Critical Technology
• Reduces coal intake & emission
Commissioned first Supercritical Unit
at Mundra
First unit to be certified for carbon
credits under the United Nation
Framework on Climate Change

7. Fuel
GAP
• Demand
supply
gap widen
• 2007-08 21
mt
• 2010-11
90 mt
CIL
• CIL said
due to
pollution
norms
its
mining
of coal
got
affected
CIL
• CIL
expected
producti
on is
revised
440mt
from 486
mt

8. Expectation
• Thus developer have expressed doubts over
the viability of coal based projects.
• 90% of expected capacity is based on
domestic coal linkages.
• Need to import 159 high calorific value.

9. Planning commission says
Coal linkages
450mt
Captive
100mt
Import 54mt
Gap 238 mt

10. Facts
• Coal import is just a short term solution to avoid
standstill.
• MoP advised to import 35 mt in 2011-12.
• Coal import 2006-07 10mt 2010-11 30 mt.
• But its unviable for developers & producers .

11. Currently…
• Also Japanese coal imports has been increased.
• International coal price 105 $- 115 $ per tone.
• Increasing resource nationalization.
• Change in the price regime of major coal
exporting countries.

12. Way ahead
• Securing fuel supply.
• Develop captive coal mines.
• 26 operator producing only 40 mt.
• Also they take min72 months as compared to
the coal ministry’s target of 36-42 months
from the date of allotment.
11th Plan
100mt(50%)
12th Plan
300mt
13th Plan
546 mt

13. Solution of Issues
• Implementation of long pending reforms in
coal mining segment.
• Setting up an independent regulators.
• Allowing the commercial mining.
• Introduction of new technology.
• Eg. independent regulator role was
highlighted in the government recent move
towards adopting GCV based pricing method.

14. • 50,000MW of power projects are stuck on no
go area by MoEF.
• PM has recently constituted a committee of
secretaries to resolve these problems.