DBPapers

ISSUES AND CHALLENGES OF INDIAN COAL INDUSTRY AND THEIR POSSIBLE REMEDIES

AUTHOR/S: BOSE, S.
Sunday 1 August 2010 by Libadmin2003

3rd International Scientific Conference - SGEM2003, www.sgem.org, SGEM2003 Conference Proceedings/ ISBN: 954-918181-2, June 9-13, 2003, 197- 210pp

ABSTRACT

Coal Mining is one of the oldest industry in India. Coal is the predominant
source of primary energy in India. About 63 per cent of the total demand for
commercial fuel is currently met by coal and this feature is expected to persist well
into the future The demand-supply imbalance in the Indian coal industry is a
crucial issue, one that will determine the course of future business strategies
charted by this sector. Rapid growth of India’s infrastructure sector will lead to a
quantum leap in total demand for energy, primarily, electricity; unless market
forces are gradually allowed to operate with greater freedom, the long-term
demand–supply imbalance is unlikely to be eliminated. This, in turn, will seriously
impede India’s developmental programmes, particularly in infrastructure and
industry. However, there are several issues and challenges in Indian coal industry
like legacy problem, geo-mining conditions – choice of appropriate technology,
HEMM availability, utilisation and mis-match, low capacity utilization of mines
and washaries, low performance of underground mines, high ash content of coal
leads to poor yield washeries. Apart from operational issues and challenges there
are number of other issues and challenges like organizational, environmental and
social, project management related and Market challenges like quality of coal,
competition from imported coal & private producer, high ash content leading to
low acceptability. To address these issues and challenges there are number of
possible remedies like classification of mines, action plan for mines, revitalizing
the washeries, developing an institutional framework encompassing organization,
marketing (e.g., supply, marketing organization, quality, pricing, distribution,
contracts), application of Information technology. Lastly the broadening of
operating horizon is required for new projects. Therefore, there is an immense
potential exists in India Coal Mining. The remedies mentioned above cannot solve
the purpose until and unless it will not only be restricted to planning stage, these
should also be implemented for developing a sustainable future for Indian coal
mining industry. A small investment can give huge amount of return to the
industry as well as to the country.