Mains Daily Question
Dec. 18, 2023
Q.1) Despite being a major producer of coal, India still faces coal shortage. Mention reasons for such coal shortages alongwith measures taken by the Indian government to solve the issue. (10M/150W)
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Approach to the answer Understanding and structuring the answer: The question gives a statement about the coal shortage in India despite being a major producer of coal. Introduction: Type 1: Give the data on coal in India – India is the second largest producer of coal. Type 2: Give a description of the recent power crisis. Body: Heading 1: Reasons for coal shortage Heading 2: Government initiatives – write some of the steps Conclusion: Give a brief way forward as your conclusion. |
Answer:
India is the second largest producer of coal with fifth largest reserves in the world. India is currently producing about 893.19 million tonnes (MT) of coal. Despite this, domestic production is not able to meet the demand of coal in the country.
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Reasons for coal shortage: |
- Rise in electricity demand: The shortage in coal was a result of a sharp uptick in power demand as the economy recovered from the effects of the pandemic. Total power demand in August 2021 was 124 billion units up from 106 billion units in August 2019.
- Flooding of coal mines: With a delayed and scattered monsoon, coal production was also impacted at CIL’s mines. Moreover, heavy rains impacted coal production especially in central and eastern India due to severe flooding in mines. This has also impacted certain key logistic routes.
- Rise in the imported coal prices by more than 40%: China had put restrictions on the export of coal and competed for securing coal supplies in the international market. This led to thermal coal prices and freight costs soaring in the international market, witnessing over a 100% increase in 2021.
- Inadequate stocks at power projects: Power plants used their coal stocks and did not replenish them. They even did not adhere to the CEA guidelines of stocking the coal for 22 days.
- Lower generation from other fuel sources: Coal and lignite fired thermal power plants account for about 54 per cent of India’s installed power generation capacity but currently account for about 70 percent of power generated in the country.
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Government Initiatives: |
- Opening of Coal Sector: The sector has been opened for commercial coal mining by private players in 2020. 100% Foreign Direct Investment is allowed for commercial mining of coal. A single window for e-auction of coal blocks has been launched for this purpose.
- Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) Policy: 209.614 million Tonnes coal linkage have been booked/allocated under different provisions of the SHAKTI Policy.
- Improved Connectivity: The government has come up with a ‘first mile connectivity’ initiative to improve coal logistics in India.
- Alternative Sources of Energy: India’s push for the renewable sector will help in reducing reliance on coal. India has committed to meet its 50% electricity needs from renewable sources of energy.
The energy crisis due to the shortage of coal witnessed after Covid pandemic calls for a concerted effort, involving technological innovation, policy reforms, investment in renewable energy, and adaptive governance. By investing in non- fossil fuel based energy technologies, India can mitigate its energy vulnerabilities and pave the way for a more resilient and sustainable energy future.
