ENERGY CONCLAVE 2006
By : Shri S. Chaudhuri,
Chairman-cum-Managing Director, CMPDI
*
Mobilization of Coal Supply
 Resource base
 Enlarging Resource base
 Enhancing Extractable Reserve
 Indigenous Coal Supply
 Energy from
Technologies
coal
seams-
 Issues on sustainable coal supply
Emerging
Mobilization of Coal Supply
Resource Base
TYPE-WISE COAL RESOURCES OF
INDIA
AS ON 1.1.2006
Coal Type
Category
Total
Proved
(Bt)
Indicated
(Bt)
Inferred
(Bt)
(Bt)
(%)
Prime
coking
4.6
0.7
-
5.3
2.1
Medium
coking
11.4
11.8
1.9
25.1
9.9
Semi coking
0.5
1.0
0.2
1.7
0.7
Total coking
16.5
13.5
2.1
32.1
12.7
Non coking
78.9
106.2
35.2
220.3
87
Tertiary(NE)
0.5
0.1
0.4
1.0
0.4
95.9
(37.86%)
119.8
(47.3 %)
37.7
(14.84%)
253.3
Total
DEPTH-WISE COAL RESOURCES OF
INDIA AS ON 1.1.2006
Depth
(m)
Proved
(Bt)
Indicated
(Bt)
Inferred
(Bt)
0-300
73.8
66.6
300-600
6.7
0-600
(Jharia)
Total
(Bt)
(%)
14.4
154.8
61.1
41.5
17.5
65.7
25.9
13.7
0.5
-
14.2
5.6
600-1200
1.7
11.2
5.8
18.7
7.4
Total
95.87
119.86
37.67
253.3
100
%
37.8
47.3
14.9
100
DISTRIBUTION OF COAL RESOURCES OF INDIA
AS ON 1.1.2006
in billion tonnes
Blocks
Total
% Share
CIL
91.69
36.2
Non-CIL (Captive)
29.35
11.6
Non-CIL (Others)
27.75
11.0
Others (TISCO etc.)
3.12
1.2
Un-blocked
83.31
32.9
Godavari Valley
17.14
6.8
NE Region
0.94
0.4
TOTAL :
253.3
100
Mobilization of Coal Supply
Enlarging Resource base
Per Capita Proved Coal Reserve
Country
Population Proved reserve
(million)
at the end of
2005
(Bt)
Per capita
proved reserve
(in tonne)
INDIA
1080
90
83
USA
296
111
375
AUSTRALIA
20
38.6
1930
RUSSIA
144
49.1
341
Source: WEC and BP Statistical Review, 2005
Enlarging Coal Resource Base
 Regional / Promotional exploration  About 5,000 Sq. Km. yet to be covered
 Present rate about 2200 sq. km. area in plan period.
 Resource addition will be mostly in >300m depth range
Jan’96 to Jan’01
Jan,01 to Jan,06
<300m 9.56Bt(80%)
19.17 Bt (48.6%)
>300m 2.39Bt(20%)
20.22 Bt (51.4%)
Total
11.95Bt
39.40 Bt

Thrust areas for XI plan
 Left out shallower region (marginal areas)
 Superior non-coking & coking coal deposits at depth.
 Likely achievement in X Plan
 Regional
1.5 lakhs m
 Promotional 3.8 lakhs m
Total
5.3 lakhs m
Detailed Exploration
Capacity
CMPDI
1.92 lakh metre/year
SCCL
1.30 lakh metre/year
State Govt.
0.10 lakh metre/year
Outsourcing
by CMPDI
2.50 lakh metre/year*
Total
5.82 lakh metre/year
* Subject to availability of agencies
RESOURCE STATUS
Total Resources
(253 Bt.)
Proved
(96 Bt.)
Indic. & Infer.
(157 Bt.)
0 – 300m
(81 Bt.)
> 300m
(76 Bt.)
*
Coking
(4.5 Bt.)
SCCL & NER
(2.8 Bt.)
Inferred
(13.8 Bt.)
REST
(73.8 Bt.)
Indicated
(60 Bt.)
Non-coking
(76.5 Bt.)
Superior
Inferior
(17.2 Bt.)
(42.7 Bt.)
RESOURCE STATUS
In 9 Major cf
(64.8 Bt.)
Not available for
Exploration
(15.6 Bt.)
Indicated + Inferred
( 0 – 300 m)
(73.8 Bt.)
Constrained
(10.6 Bt.)
Rest
(9.0 Bt.)
Not amenable
to independent
OC Mining
Amenable to
independent
OC Mining
(27.9 Bt.)
(10.7 Bt.)
RESOURCES TARGETTED FOR EXPLORATION
(28.7Bt)
< 300 M
(22.37Bt.)
> 300 M
(6.37 Bt.))
(Incl.1.3Bt coking)
Non-CIL
CIL
(14.37 Bt.)
(8.0 Bt.)
*
Detailed Exploration in XI Plan
Drilling in
Lakhs m
Capital
(approx)
In Rs. Crore
Likely addition
in Proved
reserves
In Bt
CIL
5.0
315
8.0
Non-CIL
(MoC)
Total
17.5
1130
21
22.5
1445
29.0
SCCL
6.5
N.A
N.A
 Likely Proved reserves at the end of XI Plan – 135 Bt.
Mobilization of Coal Supply
Enhancing Extractable Reserve
Enhancing Extractable Resource Base
Tentative Extractable Coal Reserve
Area
CIL
Rest
Total
Geological Resource (In Bt) AS ON 1.1.2005 Extractable
Reserve
Proved Indicated Inferred
Total
(Bt)
67.71
25.25
92.96
19.42
97.66
117.08
4.56
33.24
37.80
91.69
156.15
247.84
30.03
22.21
52.24
 Needs continued up gradation on the basis of
Further proving
Improved underground mining technology
Updated economic viability
Removal of surface constraints etc
UNFC SCHEME-CLASSIFICATION OF COAL RESOURCE BASE
UNFC Type codification of Indian coal resources in the full mine / block areas :
ECONOMIC
AXIS
(E)
Economical
(1)
Marginally
Economical
(2)
SubEconomical
(3)
GEOLOGICAL AXIS
(G)
FEASIBILITY
AXIS
(F)
Proved(1)
Indicated(2)
Inferred(3)
PR Available (1)
111
112
113
Pre-feasibility study (2)
121
122
123
PR not available (3)
131
132
133
PR Available (1)
211
212
213
Pre-feasibility study (2)
221
222
223
PR not available (3)
231
232
233
PR Available (1)
311
312
313
Pre-feasibility study (2)
321
322
323
PR not available (3)
331
332
333
THE UNFC SCHEME
Enhancing Extractable Reserves
 Expediting detailed exploration for increasing ‘Proved’
resources.
 Maximizing opencast operations
 Technology up gradation for underground mine
 Extraction of reserves standing on pillars
 Extraction of reserves in thick & steep seams
 Addressing shortage of stowing material
 Underground Coal gasification for mining low grade
coal at deeper horizon
 Implementation of Jharia & Raniganj Masterplan for fire
& rehabilitation
Mobilization of Coal Supply
Indigenous Coal Supply
Coal Production (2005-06)
(in Mt)
(provisional)
Company
Coking
Non-coking
Total
CIL
SCCL
DVC/
IISCO/JSMDC/JK
ML
TISCO
Meghalaya
24.04
0.83
319.33
36.14
0.98
343.37
36.14
1.81
6.51
-
0.01
5.57
6.52
5.57
New
Entrants
(JSPL, BECML,
ICML, HIL, MIL,
BLA, CML)
All India
0.01
13.58
13.59
31.39
375.61
407.00
Demand Projection of Coal by various Agencies
(in Million Tonnes)
Source
X Plan
Working
Group
Sectors/ Period
06-07
11-12
16-17
21-22
24-25
Power
322
469
617
Captive Power
28
32
37
Steel
43
40
40
Others
80
79
86
473
620
780
981
1126
Power
322
427
553
699
804
Captive Power
28
44
63
90
112
Steel
43
54
69
90
105
Others
80
104
143
201
246
473
630
828
1079
1267
Total
Coal
Vision
2025 @
8% GDP
Total
Base
Year
2001-02
2006-07
DEMAND OF COAL AT 8% GDP GROWTH (In Mt)
YEAR
Integrated Energy Policy
Vision Coal 2025
Power
Non Power
Total
Power
Non -Power
Total
11-12
493
164
657
471
158
629
16-17
656
221
877
616
212
828
21-22
814
299
1113
789
290
1079
24-25
1000
375
1375
916
351
1267
26-27
1133
408
1541
1018
396
1414
5.6
6.4
5.8
5.4
6.2
5.6
CAGR %
Share of coal based energy generation projected to decline from 85% in 2003-04 to
78% in 2031-32. Share of gas based energy is projected to increase to 20% from
current level of 12%.
Indigenous Coal Supply (As per Coal Vision 2025)
Fig. in Mt.
Producing
Company
CIL
Coal. Equiv.
CBM-UCG
SCCL
Captive
&
TISCO/IISCO
Total
XI Plan
XII Plan
XIV Plan
(2011-12)
(2016-17)
(2025)
536
(OC -472,UG-64)
653
(OC -573,UG-80)
839
(OC-715, UG-124)
-
5
25
41
45
47
44
75
175
621
778
1086
Demand vis-a-vis Availability
(As per Coal Vision 2025) Figures in Million Tonnes
Domestic Production
2016-17
2024-25
Coking $(Washed Coal)
778
26(13)
1086
36 (18)
Low Volatile High Rank
$(Washed Coal)
13(3)
13 (3)
734
5
828
69
759
(-)53{40} @
(-)20#
1012
25
1267
105
1162
(-) 84{63} @
(-) 125
Non-Coking
Coal equi. of CBM/UCG
Demand at 8% GDP
Total
Coking
Non-coking
Gap(-)/ Surplus(+) at 8% Coking
GDP
Non-coking
@ Equivalent quantity of Imported Coal with Ash <10% either through coking coal import/CIL overseas equity
# Gap Shall be bridged with the middling from beneficiation of coking & low volatile high rank coal & by
additional production from captive mines.
$ Figures in brackets indicate benificiated coal with 17% ash level for use in Steel sector.
Augmentation of coal production
Figure in million tonnes
16-17
24-25
Demand-supply gap of non
coking coal as per Vision Coal
2025
20
125
Demand-supply gap as per
Integrated Energy Policy in
2024-25
70
235
Production from captive Sector
as per Vision Coal 2025
75
175
Required Total Production by
captive sector to bridge the gap
in 2024-25
145
410
ALLOCATION STATUS OF COAL BLOCKS
Application
Invited
Allotted
Particulars
CIL retained
for
production
Total
No.
Offered to State
Govt.
Available for
allocation
Expl.
Regl.
Expl.
Expl.
Regl.
Expl.
Expl.
Regl.
Expl.
Expl.
Regl.
Expl.
238
(44.15)
CIL Proposed
to be
released
51
(9.20)
1
(0.19)
3
(0.69)
-
-
-
-
40
(5.80)
8
(3.38) *
Captive
Blocks -CIL
136 $
(29.35)
67
(7.25)
14
(6.22)
17
(1.94)
-
-
20
(5.86)
4
(0.91)
13
(7.36)
Captive
Blocks -SCCL
7
(0.55)
1
(0.06)
-
3
(0.18)
-
-
-
3
(0.31)
-
Non -CIL
109
(27.75)
2
(0.31)
4
(2.37)
-
-
-
8
(3.29)
27
(4.15)
41
(13.91)
71
(7.81)
21
(9.28)
20
(2.12)
28
(9.15)
74
(11.17)
62
(24.65)
Total
Figures within bracket are Resources in Bt.
* Revised resources
$ Includes one block which has been dropped from captive list
Reserves in allotted blocks
Blocks allotted
Till 2003
2004
2005
2006
Total
Fully explored
No.
29
Regionally
explored
8
Total
Reserves (Bt)
2.57
1.28
3.85
No.
4
1
5
Reserves (Bt)
1.20
0.74
1.94
No.
18
3
21
Reserves (Bt)
1.40
1.67
3.07
No.
20
9
29
Reserves (Bt)
2.65
5.59
8.24
No.
71
21
92
Reserves (Bt)
7.82
9.28
17.10
37
Energy from coal seams - Emerging
Technologies
CBM/CMM/AMM
CBM/CMM/AMM/VAM

CBM (Coal & Lignite) gas-in-place resource has been assessed as
1.78 TCM in an area of 16,222 Sq.Km in India.

16 CBM blocks have so far been allotted with prognosticated
resource of 825 BCM in 7807 Sq. Km area.

10 CBM blocks proposed for allocation with prognosticated resource
of about 600 BCM .

CMM resource assessed for virgin coal reserves in future mining
areas - around 150 BCM.

Possibility of sizable
underground mines.

Potentiality of VAM resource also exist in gassy underground active
mines.
resource of AMM exist in abandoned
CBM,CMM,AMM
Thrust Areas

Resource modeling & assessment of CBM/CMM
resources under de- stressed condition of coal
seams

Formulation of Bankable project report for CBM /
CMM / AMM exploitation

Commercial exploitation of CMM & AMM by
application of superior technology of multi lateral
horizontal in-seam drilling

Creation of suitable pipeline infrastructure for cost
effective transportation of methane
Energy from coal seams - Emerging
Technologies
Underground Coal Gasification
Depthwise & Qualitywise reserves of non-coking coal
(as on 01.01.06)
In Billion tonnes
Quality
Proved
<300m
Indicated
>300m
<300m
>300m
Total in Proved &
Indicated
<300m
Total
>300m
Superior
23.39
4.25
18.67
19.82
41.06
24.07
65.13
Inferior
44.04
7.64
43.97
24.23
88.01
31.87
119.88
Total
67.43
11.89
62.64
44.05
129.07
55.94
185.01
79.32
106.69
185.01
Quality-wise break up of 35.20 Bt.reserves ( 13.95 in <300m & 21.25 Bt. In >300m) in Inferred
category is not available
Underground Coal Gasification
Thrust areas
 Specific study for delineation of suitable UCG blocks.
 Taking up pilot scale studies in an collaborative regime
for establishing techno-economics.
 Separate bye laws, regulatory framework, fiscal
incentive etc. are to be evolved
 Creation of suitable pipeline infrastructure for cost
effective transportation of Syn. Gas.
Mobilization of Coal Supply
Issues on Sustainable Coal
Supply
Issues on Sustainable Coal Supply
Continued expansion of resource base
 Detailed exploration need be completed about two Plan periods
before the year of achieving rated coal production from a block.
 Exploration in CIL blocks for the production in 2016-17 will be mostly
completed by 2006-07.
 Explored allotted blocks can produce to match the coal requirement
of XII Plan from captive blocks.
 Proposed detailed drilling in XI plan will help in achieving coal
production from XIII plan onwards.
 Forest Clearance procedure for exploration needs to be suitably
modified .
 Present capacity of coal core analysis (about 30000 m/year) needs to
be more than doubled to cater to the detailed exploration during XI
Plan.
Issues on Sustainable Coal Supply
 Underground mining
Present production level of 62 mt proposed to be tripled by 2025
as per vision coal 2025.
Necessary mine development works for above have to be started
during XI plan itself
Steps to be taken for faster liquidation of upper seams particularly
in Raniganj & Jharia coalfields for introduction of LW in lower
seams where geo-mining conditions are favourable
Manual mining should be phased out by 2016-17 as bulk of
conventional manual miners will retire by then
Bord & Pillar operations with continuous miner will be the dominant
mining technology by 2016-17
 Need for increasing indigenous underground mining equipment
(continuous miner etc.) manufacturing capability
Issues on Sustainable Coal Supply
 Enhancement of Extractable Resource
 Coal Evacuation
Emphasis on transport through MGR
Urgent augmentation of NK & Ib valley coalfields
Rail Coal corridor,
Slurry pipe line
Riverine/sea transport
Others ( Ropeways, Coal Road hauler etc.)
 Land & Rehabilitation
 Forest clearances
Forest Zoning ‘Yes’ or ‘No’
Amendment of legislation
Utilization of compensatory afforestation fund
Issues on Sustainable Coal Supply
 Manpower Requirement
Coal production in coming two decades is set to touch 1.5
billion tonnes
Average age of engineers (in coal PSUs) is about 47 years
It requires about 7 years to train & develop engineers
Trained manpower will be required for
Conventional mining
Emerging technologies
Exploration
THANK YOU
Net Efficiency for Coal Fired Power Plant and CO2
Emission Rate
Type
Net
Efficiency %
CO2
Emission
Rate %
Status
Pulverized Coal
30-35
100
Proven
PC(USC)
40-42
93-95
Proven
PFBC
42-45
90
Proven
IGCC
45-46
85
Developing
IGFC
Upto 50
75
Developing
Enhancing Extractable Resource Base
Tentative Extractable Coal Reserve
 An exercise carried out (April, 2004) shows that of the
total resources of 91.69 Bt in CIL, 30.03 Bt (32.7%) are
extractable as on 1.1.02. The remaining reserves are
blocked due to various constraints.
 Broad assessment of the extractable reserve of the
National Coal Inventory as on 1.1.2005 considering :
Detailed exploration connotes a confidence level of
90% of the reserves established.
A 70% confidence level to Indicated and 40% to
Inferred resources.
 A study by CMPDI (July, 2001) shows an average
Reserve to Production (R:P) ratio as 4.7:1.
Sustainability of coal production- Opencast
 Share of opencast operations was about 22 % in
1975 which has increased to 84 % in 2004-05 (320
Mt). By 2025, coal production from opencast
operations of Coal India will reach a level of about
715 Mt, which can be sustained for next 15 years at
that level with further exploration.
 Current depth of opencast operations ranges from 70
meters to 120 m whereas the operations have now
been planned up to 300 m.
Sustainability of coal productionUnderground


Underground coal production in India has remained
stagnant for the last 25 years .For producing 124 mt of
coal by 2025, the development work should start by 200607.
Application of mass production technology has been
envisaged for achieving the aforesaid level of
production.Upper seams of Jharia and Raniganj Coalfield
are required to be liquidated prior to adoption of mass
production technology in lower virgin seams.

In future, for extracting deep-seated coal resource,
underground mines need to be planned for at least 0.5
Mty and higher with appropriate technology mix viz.
mechanised Board & Pillar, Powered Support Longwall
Contd..
SECTOR-WISE PROJECTED COAL DEMAND IN
2025
Scenario : 8 % GDP growth
Power
(utility)
Power
(captive)
Steel
Cement
BRK &
Others
Total
demand
804
112
105
123
123
1267
Share on total
demand (%)
63.46
8.84
8.28
9.71
9.71
100
CAGR (06-25)
5.22
7.23
5.10
9.18
5.00
5.62
Demand (Mt)
Scenario : 7 % GDP growth
Power
(utility)
Power
(captive)
Steel
Cement
BRK &
Others
Total
demand
719
102
97
113
116
1147
Share on total
demand (%)
62.69
8.89
8.46
9.85
10.11
100
CAGR (06-25)
4.56
6.69
4.64
8.65
4.66
5.04
Demand (Mt)
Indicated & Inferred Resources within 300m in
Major Coalfields (Non-coking coal)
(Billion tonnes)
Coalfield
In already
explored
blocks
Already allocated
Available for exploration
Total
Under
expln./
proposed
by CMPDI
To be explored
by allocatee
Prioritised
for expln.
In areas
constrained
for mining
Not amenable
for independent
OC mining
Talcher
0.35
1.86
1.39
1.38
1.49
12.10
18.58
IB Valley
0.67
0.27
0.26
1.23
0.42
6.29
9.14
Korba
0.27
-
-
0.07
-
2.47
2.80
Hasdeo-Arand
0.01
-
0.98
1.20
0.09
1.48
3.76
Auranga
-
0.10
0.95
0.52
0.02
-
1.59
Rajmahal
0.40
-
2.80
2.66
2.65
0.31
8.82
Singrauli
0.98
-
0.47
0.16
0.50
1.68
3.78
N.Karanpura
0.75
-
-
1.08
-
1.60
3.43
Mand-Raigarh
0.26
-
2.81
2.45
5.45
1.94
12.91
Total
3.67
2.23
9.66
10.76
10.60
27.88
64.82
Note: Resources in other coalfields - 8.95 Bt
CONCLUSIONS
● Cost of washing is nullified due to reduction in washed
coal requirement for the same capacity of power plant
● Using washed coal in conventional power plant and rejects in
FBC / CFBC power plant will lead to increased generation of
power from the same quantity of raw coal
● Specific CO2 emission per unit of electricity generated will
reduce by using washed coal
PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25
Fig. in Mt.
Domestic Total
1086
Production Coking (Washed)
36 (18)
Low volatile High rank
13 (3)
(Washed)
Non-Coking
1012
Coal equivalent of CBM /
25
UCG
Deamd at Total
1147
7 % GDP
Coking
97
Non-coking
1050
Gap(-) /
Coking
(-) 76 (57)*
Surplus (+) Non-coking
(-) 13
at 7 % GDP
* Gap in coking coal shall be bridged with middlings to be
generated from beneficiation of coking & low volatile high rank
coal.
PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25
Fig. in Mt.
Domestic
Production
Total
Coking (Washed)
1086
36 (18)
Low volatile High rank
(Washed)
Non-Coking
Coal equivalent of CBM / UCG
Deamd at 8 Total
% GDP
Coking
Non-coking
Gap(-) /
Coking
Surplus (+) Non-coking
at 8 % GDP
13 (3)
1012
25
1267
105
1162
(-) 84 (63)*
(-) 125
* Gap in coking coal shall be bridged with middlings to be
generated from beneficiation of coking & low volatile high rank
coal.
Clean Coal Technologies:
During Combustion
Following advanced combustion technologies are being
employed/ under various stages of development to reduce
emission of GHGs & increase thermal efficiencies:

Pressurized Fluidized Bed Combustion Combined Cycle (PFBC)

Integrated Coal Gasification Combined Cycle(IGCC)

Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)

Hydrogen Production from Coal with Carbon Dioxide Recovery(HyPrRING)
OUTLOOK ON COAL

Coal is the key contributor to the Indian energy
scenario. 55 % of the current total commercial
energy needs are met by coal.

Coal has the largest domestic base and largest
share of India's energy production amongst four
major Indian fuel sources - oil, natural gas, coal
and uranium.

A far smaller percentage of domestic coal demand
is met by imports than for the other major fuels.

It is projected that by 2024-25, the share of coal in
national energy scenario would come down
marginally to about 50 % level.
Integrated Energy Policy - Issues
 To bridge the gap between demand and supply encourage
import which are also needed from a longer term
perspective
 Create needed infrastructure to facilitate coal import
 Imported coal is far more cost competitive to imported gas
for power generation along the western & southern coast
 Domestic coal production should be stepped up by allotting
coal blocks to PSUs as well as to notified end users
 Coal blocks held by CIL, which will not be brought into
production by 2016-17 be made available to other eligible
candidates for bringing into production by 2011-12.
 Coal Mines (Nationalisation) Act 1973 be amended to enable
private participation for purposes other than those specified
& offering of future coal blocks to potential entrepreneurs
Integrated Energy Policy - Issues
 Enlarging coal resource base is important to meet
coal requirement.
 Deshaling, improved mining procedures and
sizing of coal to be considered for bringing down
the average ash content of Indian coal.
 Full washing to reduce ash content further
thereby saving transport cost and resulting in
improved of power plants to be considered.
 Independent regulatory body to regulate upstream
allotment and exploitation of coal blocks to yield
coal, CBM, mine mouth methane and for in-situ
coal gasification to be created.
Integrated Energy Policy - Issues
 Rationalise rail freight rates for coal transport. Gradually
reduce cross subsidy surcharges imposed on freight traffic.
 Alternate means for moving coal through coastal shipping,
river/canal movement and coal slurry pipeline to be
considered.
 Infrastructure status to coal industry. Lower duties on
capital goods imported for coal mines to make them uniform
with such duties for other energy sub-sectors.
 20% of total coal available should be sold through
e-marketing.
 Raise the domestic level of trading and marketing of coal by
removing it from the list of essential commodities.
 Amend the provisions of Contract Labour (Regulation &
Abolition) Act, 1970 to facilitate off-loading activities in coal
mining for improved economics of operation.
Integrated Energy Policy - Issues
 Improved Governance is essential for dealing with
malpractices and corruption like black marketing of coal,
pilferages and illegal mining.
 Coal projects are often delayed due to environmental
regulations and delays in approval of EMPs. Simplification
of procedures, preparation of comprehensive EMPs and
demonstration of environmental responsibilities on the
ground can help reduce such delays.
 Reserve of compensatory afforestation built in advance
should be accepted against specific project-wise
commitments to reduce such delays
Production Projections
Producing Company
Projected Production (Mt)
XII Plan (2016-17)
XIV Plan (2025)
OC
UG
Total
OC
UG
Total
CIL Total:
(Incl. NE)
Non-CIL Areas
Unblocked Areas
Total CIL
568
80
648
658
124
782
5
-
5
57
-
57
573
-
80
-
653
5
715
-
124
-
839
25
Coal Equivalent CBMUCG
SCCL
Others:
Captive
TISCO/IISCO
Grand Total (Domestic)
45
47
75
175
778
1086
Production Projections
Demand vis-a-vis Availability
Domestic Production
Total
Coking (Washed Coal)
36 (18)
Low Volatile High Rank (Washed Coal)
13 (3)
Non-Coking
1012
Coal equiv.of CBM/UCG
Demand at 7% GDP
Total
Coking
Non-Coking
Gap (-) / Surplus(+)
at 7% GDP
1086
Coking
Non-Coking
25
1147
97
1050
(-) 76 {57}
(-) 13
Production Projections
 The production projected as above is based on broad
assessment, keeping in view various considerations like
geo-mining, techno-economic and surface constraints,
specific to different coalfields .
 Large opencast mines would continue to play dominant role
in country’s coal production in next 3 decades.
 It is expected that coal production from opencast operation
of CIL will peak at 715 Mty by 2025, in addition a production
of 160 Mty is expected to come from the opencastmines/blocks identified for allocation to captive users. SCCL
will also contribute a production of 27 Mty from opencast
mines by 2025
Production Projections
 Private sector participation in coal through captive mining
has been allowed by the Govt. since 1993.
 17 Captive Blocks of tentative production capacity of 26.45
MTY were allocated till 2000. The production from these
blocks which was 3.83 mt in 2000, has increased to 9.58 mt
in 2005.
 70 more captive blocks of potential production capacity of
172.55 mty have been allocated and are under allocation
process between 2001 & 2005.
Development of Coalbed Methane and Underground Coal
Gasification
Coal Bed Methane
 In 1997, a CBM policy was formulated and DGH was nominated as the
nodal agency for management and promotion of CBM in the country.
Two rounds of global competitive bidding have already been
concluded where blocks were delineated by CMPDI at the instance of
MoC and corresponding data package were also largely prepared by
CMPDI.
 A mine-related CBM demonstration project for Coal Bed Methane
Recovery and Commercial Utilization aided by UNDP/Global
Environment Facility (GEF) and Govt. of India as collaborators has
been taken up.
 A consortium of CIL and ONGC has been allotted two blocks for
exploration and commercial exploitation of CBM located in Jharia and
Raniganj coalfields. CMPDI is to implement this project on behalf of
CIL. The project is under implementation.
Development of Coalbed Methane and Underground Coal
Gasification
Coal Mine Methane / Abandoned Mine Methane
 Coal Mine Methane/Abandoned Mine Methane (CMM/AMM)
have been considered as an important sub-set of CBM which
relate to CBM produced before, during and after coal mining.
 CIL has drawn a long term perspective for commercial
recovery of CMM/AMM.
 The perspective includes policy formulation and generation of
base line data for evaluation of areas under mining,
abandoned mines and future mining areas for delineation of
viable CMM/AMM blocks for commercial recovery of
CMM/AMM
Development of Coalbed Methane and Underground Coal
Gasification
CBM Data Generation
During the course of initial assessment of CBM resources, it has
been observed that there is lack of dedicated database in respect of
desorption and adsorption character of coal for CBM potentiality
assessment. In view of this, it was evolved in the National
perspective that routine coal exploration through boreholes under
Promotional funding by the Govt. may be used for incremental data
generation in regard of CBM potentiality assessment. Accordingly, a
scheme of assessment of CBM Gas-in-Place Resources of Indian
coalfields during X Plan has been approved by the Govt. at an
estimated cost of Rs.8 crores. The scheme is under implementation
by CMPDI and the data in various coalfields are being generated
Development of Coalbed Methane and Underground Coal
Gasification
Underground Coal Gasification
 In India, a large amount of coal exists beyond present techno-
economically viable mining depth. They are falling within Proved to
Indicated categories. Such coals have immense potential to yield energy
through UCG. Besides, within mineable depth also, there are many small
isolated patches of coal occurrence, which are presently not viable for
mining and the same can be considered for underground coal conversion.
 Additionally, there is a huge occurrence of lignite in India, which has not
even brought into lignite resource inventory, but otherwise known in course
of oil and gas exploration in the country. These lignite fields need proper
exploration and may be taken up for UCG in addition to known lignite
deposits, which could not be economically mined due to greater depth.
Visualizing the opportunity, CIL Board has cleared a MoU with ONGC for
pursuing UCG under collaborative regime on 50:50 cost sharing and is
awaiting approval of Govt.
Conclusion
Coal will remain the major primary source of commercial energy in the
India owing to its large resource base.
Presently, the extractable coal reserves upto a depth range of 600m has
been assessed as 52 billion tonnes.
Considering the average production level of 600-700 Mty with peak of
the production reaching to the forecasted level of 2025, the country’s
coal resources is expected to last for more than 60 years. By this time,
new alternative source of energy will come into commercial operation
Projected high growth rate in coal production is subject to removal of
barriers
There is a need to expand the coal resource base of the country by
expediting coal exploration both regional and detailed.
Indian system of coal resource classification needs to be replaced by
UNFC based classification system for better appreciation of the
economy of coal resources of the country
Production Projections
Coal Production Projection
Company
Production in 2025 (Mt)
Non-coking
Coking
Total
809
30
839
SCCL
47
-
47
Captive & TISCO /
IISCO
169
6
175
CBM-UCG
25
-
25
Sub total Non-CIL
241
6
247
1050
36
1086
CIL
Non-CIL
All India
Issues on Coal Supply
Augmenting indigenous production from
 CIL, & SCCL
 Others (TISCO,IISCO etc.)
 Captive blocks
 CBM & UCG operations
Sustainability of coal production
 Opencast
 Underground
Issues on Coal Supply
Removal of infrastructural constraints
 Coal evacuation
 Land & rehabilitation
 Creating indigenous equipment manufacturing
base
Review of Policy issues
 Forest Zoning/ EMP clearance
 Fiscal incentive for UCG & coal washing
 Lower import duty on mining equipment
 Creation of corpus fund for mine closure
Production Potential from allotted Captive blocks
Captive Blocks (including TISCO, IISCO etc.):
A. Production Requirement (Mt)
06-07
11-12
28.8
16-17
44.0
75.0
Regionally Explored
8
1.28
Total
37
3.85
B. Blocks allotted:
Fully Explored
Till 2003 No.
29
Reserve(Bt)
2.57
1.
2.
2004-06 No.
Reserve(Bt)
41
5.19
13
8.0
54
13.19
Total
70
7.76
21
9.28
91
17.04
No.
Reserve(Bt)
Blocks allotted till 2003 have sufficient Proved reserves to attain 44 Mt production by 2011-12
Blocks allotted till date have sufficient Proved reserves to attain 200 Mt production by 2020
COAL BENEFICIATION
Indian Coals - Need for beneficiation
 Unlike Western Coal, most of the Indian coals contain high
percentage of inorganic impurities (due to Drift origin).
 65% of non-coking coal belongs to high ash category
(grade ‘E’ and below)
 Ash content in ROM coking coal is around 26-35% against
ash requirement for steel making 17+0.5
 Contain high percentage of Near Gravity Materials (NGM)
 Substantial reserves of High Ash (>34%) Non-coking coal
in the country .
 Deterioration in coal quality due to increased
mechanization of mines
 MOEF’s mandatory requirements
 Varying customers’ needs & need for market retention
 To reduce load on Railways Transportation system
Prospect Of Coal Beneficiation : 2011-12
Sl.
No.
Type of Coal
1
Coking Coal
2
Low Volatile High
Rank (LVHR), i.e.,
high ash Coking
coal
3
Non-Coking Coal
3.1 Superior Grade
3.2 Pit Head TPP
linked low grade
Coal (approx)
3.3 Remaining Low
Grade Coal
Projected
Productio
n MTY
26
Existing
Washing
Cap, MTY
31
13
Nil
147
160
275
Capacity
Addition
required
Existing
washeries to be
Modernized/
Replaced
13
Need based
Need based
90
185
LEVEL OF WASHING
Partial washing
 For Non-coking coal : Require banding of UHV to narrow down the
calorific ranges & subsequent pricing to reap the benefit of noncoking coal washing
Full scale washing
 For Coking coal
ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDY
● Raw coal characteristics of Talcher Coalfield
Ash – 40.2%
GCV – 4074 Kcal/kg
Price – Rs. 515 / Te (without sizing)
● Washed coal at 34% ash
Yield % - 80.8
GCV – 4439 Kcal/Kg
Price – Rs 736 / te (excluding sales realisation of rejects) , Rs 701 / te
(including sales realisation of rejects @ Rs 150 / te)
ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDY
● Price of 1000 Kcal in case of raw coal = 12.6
paisa
● Price of 1000 Kcal in case of washed coal (excluding sales
realisation of rejects) = 13.3 paisa
● Price of 1000 Kcal in case of washed coal (including sales
realisation of rejects) = 12.6 paisa
Assumption : Requirement of washed coal in a thermal power
plant is equivalent to 80% of raw coal requirement
PRESENT STATUS OF WASHING & FUTURE REQUIREMENT
● As per Coal Vision – 2025, production is projected as 1060
Mty out of which 874 Mty need to be washed
● Present washing capacities of all non-coking coal washeries
( inside CIL & outside) = 90 Mty
● 3 more washeries of 24 Mty combined capacity are under
construction
● Likely quantity of rejects to be produced = 218 Mty to 260 Mty
which will produce about 17000 Mw to 20000 Mw of power by
FBC / CFBC technology
ENVIRONMENTAL IMPACT
● As per a Japanese estimate, for producing 2.17
million MWHr electricity i.e. for a 275 Mw Power Plant
unit, reduction of 550,000 Te of CO2 emission can be
achieved by using washed coal (34% ASH) instead of
42% ash raw coal.
Washery Rejects : Present Scenario
 Generation of Rejects in 2004-05 was 2.44 Mt from CIL
washeries having

Coking Coal Washeries
: 10 - 15 % of RC feed

Non-coking Coal Washeries
: 15 - 20 % of RC feed
 Washing capacity in non-CIL plants about 81 Mt :
 Coking Coal
: 11.27Mt
 Non-Coking
: 69.6 Mt
 Percentage of Reject is likely to be the same as in CIL
Washeries
 Addl. non-coking Coal Beneficiation by 2011-12(Anticipated) : 185
Mty
Approx.
Washery Rejects : Present Scenario
 Disposal of Rejects in an environment friendly
manner posing problem
 7 units of 10 MW has been installed at five
locations for utilising coking coal washery rejects
for ash % ranging from 55 to 72 in BCCL and CCL.
Thrust Area : Reject Utilization
 To establish an Efficient cost-effective technique for
power generation from Washery rejects
 Ash generated from the power plant will be disposed
as a back-fill material in the Opencast Mines.
 The Power Plants to envisage post combustion
emission control technologies e.g. CO2 control /
sequestration etc.