Coal India registers 9.6 percent growth in coal production

New Delhi: Coal India Ltd. has registered significant improvement in coal production, dispatch and supplies to the power sector which has resulted increase in coal based power generation. In the quarter ending September, 2013, coal production has shown a growth of 9.6%, coal dispatch 7.2% and coal supplies to power sector 7% over the second quarter of last financial year. This has led to a growth of 7% in coal based power generation. This was stated by was stated by Union Minister of Coal, Shri Sriprakash Jaisawal while addressing the inaugural session of “Clean Coal India 2013” being organized by the Confederation of Indian Industries hear today. He said for sustainable growth rate of 8%, country need to increase the primary energy supply by three times and electricity generation by five times by 2031-32. The energy demand keeps on increasing due to rising population, accelerated industrialization and urbanization.

Text of the Minister’s speech is as follows:

“Energy security and environmental considerations are the two big challenges the world is facing today. India is not exceptional to these challenges but the difference is that our developmental goals are more pressing compared to the global environmental considerations and the fact that our dependence on coal in meeting our energy requirements would continue in near future also makes it further challenging.

For sustainable growth rate of 8%, we need to increase the primary energy supply by three times and electricity generation by five times by 2031-32. The energy demand keeps on increasing due to rising population, accelerated industrialization and urbanization.

I am pleased to inform that performance of Coal India Ltd. in terms of coal production, coal dispatch and also coal supplies to the power sector has been very good during the month of September, 2013 as well as during the Second Quarter of the current financial year. In September, 2013 coal production has increased by 15.6%, off-take by 9.2% and coal supply to power sector by 9% as compared to September, 2012.

In the quarter ending September, 2013, coal production has shown a growth of 9.6%, coal dispatch 7.2% and coal supplies to power sector 7% over the second quarter of last financial year. This has led to a growth of 7% in coal based power generation.

In our country, coal being cheap and available in abundance is currently the most widely used fuel accounting for 55% of primary energy supply and 70% of electricity generation. As the coal plays an important role in our energy mix particularly for power generation, we need to use it efficiently and reduce its environmental implications. We need to frame and implement policies that improve the overall efficiency of power generation from coal. Given that our domestic production of coal is not keeping pace with the ever increasing demand,part of the deficit in coal supply can very well be met by minimizing the wasted energy by making investment in efficient end use plants. Investment in energy efficiencies could be very attractive as an incremental capital investment is recovered in a reasonable time period, energy costs are lowered and energy productivity enhanced.

A one percentage point improvement in the efficiency of a conventional pulverised coal combustion plant results in a 2-3% reduction in Carbon-dioxide emissions. Highly efficient modern coal plants emit almost 40% less Carbon-dioxide than the average coal plant currently installed. The average efficiency of pulverized coal-fired plants is currently about 35% compared to 45% for the most efficient plants.

Coal use has huge environmental foot print particularly when it is put to use for power generation. A number of technologies have been developed in the recent past to meet coal’s environmental challenges and collectively these are known as Clean Coal Technologies.

Broadly Clean Coal Technologies include –

Washing of coal,
Coal Gasification,
Coal Bed Methane and Coal Mine Methane extraction
Underground Coal Gasification
Coal Liquefaction
Coal conversion technologies for power generation like Fluidised Bed Combustion, Super critical and Ultra Supercritical technologies, Integrated Gas Combined Cycle, Carbon Capture and Storage, Oxyfuel etc.
The Government has already awarded 33 blocks for exploration and exploitation of CBM in four rounds of bidding and two blocks have reportedly entered into commercial production. Coal India Limited has successfully implemented a CMM project in association with UNDP in BCCL area.

The Government has notified coal gasification and coal liquefaction as end uses under captive mining policy. Two coal blocks have already been allotted to two private companies for development of CTL plants in the State of Orissa.

Use of coal as mined is not easy in view of the contaminants that are inherent in the coal seams and those which get associated in the course of mining. These impurities make it difficult even to maintain the in-situ quality of coal as it occurs in a seam and thus require cleaning of run of mine coal to a desired level so that quality aspects and concerns of consumers are properly addressed.

Indian coals are high in ash content, as high as 45% or even higher. Ash consumes thermal energy while coal is burnt in boilers. Reduction of ash in the coal that is fired in boilers helps in reducing the wastage of thermal energy and leads to lesser consumption of coal for producing the same amount of thermal energy. Reduced coal consumption eventually helps in reducing Green House Gas emission such as Carbon-dioxide and improves the thermal efficiency of power plants. A cost effective and significant step towards improving power plant efficiency and reducing the Green House Gasesemissions from the coal-fired power plants in India would be to increase the availability of clean beneficiated coals using appropriate beneficiation technologies.

I would like to reiterate that we need to make coal more environment friendly with proper planning and implementation right from conceptual stage. Washeries should be considered as profit centers of a mining project.

We have taken proactive measures on coal beneficiation that also ensures consistent supply of quality and sized coal to customers. In CIL, which is the single largest coal producing company in the world, the coal washing capacity is confined to 17 washeries operating today. Twelve are dedicated to wash coking coal with a capacity of 22.18 Million tonne per year and five are operational for non-coking coal with a capacity of 17.22 Million tonne per year. Coal India has planned to create additional washing capacity in the country through sixteen new coal washeries in first phase. The total installed capacity of these new washeries will be 92.1 Million tonne per year. Ten will be dedicated for non-coking coal with total capacity of 73.5 Million tonne per year and six for coking coal and their total capacity will be 18.6 Mty. Private participation is also being encouraged for installation of washeries to meet demand supply gap of washed coal.

When the issue of adoption of efficient and environmental friendly technologies comes up, the only available technology for power units is the Super Critical technology. Already eleven supercritical units with a total capacity of 7,400MW have been installed and a large number of supercritical units are under construction. About 50 percent of coal-based capacity addition in the Twelfth Plan is expected be based on supercritical technology. For the Thirteenth Plan, it has been decided that all coal fired capacity addition shall be through supercritical units. Moreover, integrated gasification with combined cycle plants is one of the focus areas for research in the country. Though this technology is commercialized, research efforts are being carried out to make it commercially viable to suit Indian coal – as it carries more ash content.

I am sure that this seminar will deliberate the relevant issues and come out with possible solutions for making our energy plans sustainable. While most of the above issues are taken care of by the policy makers, necessary additional policies, monitoring and regulatory mechanism are to be put in place to have total implementation.”