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Despite the im<strong>me</strong>nse<br />
potential of the Coal<br />
sec<strong>to</strong>r, key challenges<br />
and issues are s<strong>to</strong>pping<br />
this industry from<br />
growing <strong>to</strong> the hilt<br />
One of the basic natural<br />
resources needed <strong>to</strong><br />
sustain India’s growth<br />
s<strong>to</strong>ry is coal. Its<br />
significance as an input for generation<br />
of power is im<strong>me</strong>nse. And its<br />
availability has beco<strong>me</strong> scarce and<br />
price dear. Hence, conservation and<br />
judicious use of coal is becoming an<br />
important task for corporations and<br />
govern<strong>me</strong>nt bodies.<br />
As Indian companies grow in leaps<br />
and bounds and penetrate deep in<strong>to</strong><br />
unheard pockets of the country, the<br />
require<strong>me</strong>nt of coal for generation of<br />
power would increase considerably.<br />
Of all the natural resources such as<br />
oil, natural gas, hydro and nuclear,<br />
coal is highly used as the primary<br />
source of energy.<br />
According <strong>to</strong> an estimate, coal is the<br />
dominant source of energy in India<br />
and <strong>me</strong>ets 52.4% of energy<br />
require<strong>me</strong>nts, followed by oil and<br />
natural gas, which <strong>me</strong>et 41.6% of the<br />
<strong>to</strong>tal primary energy require<strong>me</strong>nt of<br />
the country. However, the present<br />
’<br />
GOVERNMENT S<br />
CO(A)LD<br />
SHOULDER<br />
situation of coal availability is not<br />
very uplifting. Even though India has<br />
one of the largest coal reserves, it is<br />
not able <strong>to</strong> e<strong>me</strong>rge as a very strong<br />
energy producer. Instead, it is<br />
struggling <strong>to</strong> <strong>me</strong>et its increasing<br />
do<strong>me</strong>stic demand.<br />
A study conducted by the Indian<br />
Planning Commission and the Coal<br />
Ministry revealed that India’s <strong>to</strong>tal<br />
coal consumption was expected <strong>to</strong><br />
increase from around 510 <strong>me</strong>tric<br />
<strong>to</strong>nnes in 2007-08 <strong>to</strong> 550 <strong>me</strong>tric<br />
<strong>to</strong>nnes by 2008-09. India is yet <strong>to</strong><br />
reach this consumption limit. Huge<br />
amount of invest<strong>me</strong>nt is needed for<br />
such consumption.<br />
The existing regula<strong>to</strong>ry fra<strong>me</strong>work<br />
restricts private sec<strong>to</strong>r players from<br />
coal mining and other activities<br />
related <strong>to</strong> the production of coal.<br />
More than 90% production of coal is<br />
with the central and state<br />
govern<strong>me</strong>nts. Hence, regula<strong>to</strong>ry<br />
hurdles are one of the chief reasons<br />
for the inadequate coal policy that has<br />
failed <strong>to</strong> address the country’s strong<br />
coal consumption needs.<br />
Through a low-down on India’s coal<br />
industry, we would be discussing<br />
about the key challenges and issues<br />
that mar the growth of this industry at<br />
a ti<strong>me</strong> when require<strong>me</strong>nt of power for<br />
consumption is becoming necessary<br />
and crucial.<br />
COAL: AN ESSENTIAL INPUT<br />
India ranks third among the world’s<br />
Beyond Market 10th Oct ’11 It’s simplified... 23