24.12.2012 Views

Take me to PDF file - Online Share Trading

Take me to PDF file - Online Share Trading

Take me to PDF file - Online Share Trading

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!