India asks utilities to import coal amid short supply due to rising demand
Recently, the government has advised users to import coal when the demand increases.
Despite being the world’s fifth largest coal reserves and second largest coal producer, India has suggested importing coal from users. The responsible factor is that various power plants are on the verge of closure under fuel shortage due to increase in demand for electricity.
- Data from the Central Electricity Authority shows that more than half of the 135 coal-fired plants have coal supplies for less than a week.
- Electricity generated by coal accounts for more than 70% of India’s electricity generation.
- Commercial coal mining has been approved for Indian and foreign companies in the first private sector initiated by the government for the coal sector.
- The Mineral Laws (Amendment) Act, 2020 has been introduced to ensure ease of doing business.
- The Coal Mines (Special Provisions) Act, 2015 enables allocation of coal mines through transparent auction.
- The Cabinet Committee on Economic Affairs (CCEA) has approved a new coal linkage policy. Under this, adequate supply of fuel to power plants is ensured through reverse auction.
- UTTAM (Third Party Assessment of Mined Coal for Transparency) Application has been launched for Coal Quality Monitoring.
Challenges before the coal sector in India:
- Delay in land, environment and forest clearances.
- High cost of operation and maintenance.
- The quality of Indian coal is such that it contains high amounts of silica and alumina (rhinestone clay).
Source – The Hindu
