Coal deficit for power sector to double by March 2012

The government today said that coal deficit being faced by power utilities is expected to double to 104 million tonnes in the next fiscal, because of rapid increase in demand from the sector.

"For the year 2010-11, coal requirement for power utilities is estimated to be 440 million tonnes (MT) wherein the availability from Coal India (CIL) and other sources is expected to touch 388 MT," Coal Minister Sriprakash Jaiswal said.

"Similarly... A shortfall of 104 MT of coal has been projected for the year 2011-12," in the wake of growing power demand he said in a statement delivered at the 3rd India Coal Summit here, organised by ICC.

Jaiswal said the deficit was being met through coal imports, which are rising fast, already contributing to over 10 per cent of the consumption.

He said steps were on to augment coal production in the country, and projected a demand of 2,500 MT by 2031-32.

"...To reduce our foreign dependence and to bridge the ever increasing gap between requirement and indigenous availability, the government has enhanced its investment from Rs 260 crore in 2009-10 to Rs 400 crore in 2010-11 for infrastructure development."

Moreover, CIL and Singareni Collieries have proposed investments of Rs 3,800 crore and Rs 1,335 crore respectively to augment production this fiscal, he said, adding "as a result of investment made in previous years, an additional production of 38.83 MT is expected in 2010-11".

The Coal Ministry has approved for grant of coal linkage to five super critical thermal power projects of NTPC and DVC the projects in Uttar Pradesh, Bihar, West Bengal and Maharashtra, would add up to a power capacity of 7,260 Mw and will supply power to the National Grid, he said.

Of the total installed power capacity of 159,398 Mw in India, almost 50 per cent is based on coal. Moreover, in the 11th Five Year Plan (2007-12), of the 78,700 Mw capacity planned, 50,570 Mw has been proposed to be coal-based.

Industries such as steel, cement, fertilisers and chemicals are major sectors of coal consumption.

Jaiswal said it has been estimated that coal will continue to have a share of 51 per cent in electricity generation by 2031-32 and 47 per share in total primary commercial Energy Supply.

Coal contributes to more than 70 per cent of power generation, and 35 per cent of commercial energy source.

Globally, the Indian coal industry is the fourth largest in terms of reserves at 267 billion tonnes, and third largest in terms of overall production of around 550 million tonnes per annum.