Modi’s Kala Dhan Dhamaka

e-action on Coal Blocks’ e-auction Govt releases draft rules ……/posts/KLxyw4JYhYk

1 hour ago – Govt releases draft rules for e-auction of cancelled coal blocks HT Correspondent , Hindustan Times New Delhi, December 18, 2014 First Published: 23:25

Govt releases draft rules for e-auction of cancelled coal blocks

HT Correspondent, Hindustan Times  New Delhi, December 18, 2014

First Published: 23:25 IST(18/12/2014) | Last Updated: 23:26 IST(18/12/2014)

The government on Thursday released draft rules for e-auction of cancelled coal mines in an approach paper that is open for public consultation.

The coal ministry has sought comments from stakeholders by Monday. The government said coal mines shall be earmarked for different end-use sectors and allocated through a competitive bidding process of e-auction.

The approach paper proposes the e-auction of the 204 coal mines that were cancelled by the Supreme Court in September 2014, fixing a floor price of Rs. 150 per tonne for sectors such as steel, sponge iron, cement and captive power.

In the first phase the government plans to e-auction and allot 92 coal blocks under the Coal Mines (Special Provisions) Ordinance 2014.

The intrinsic value of the coal block will be calculated by computing its net present value, based on the discounted cash flow method. Operators will have to pay 10% of the intrinsic value upfront.

The approach paper has pointed that the floor price shall not be less than Rs. 150 per tonne. The ceiling price of the prevailing Coal India Ltd notified price for each coal mine will be fixed and the bidder will be mandated to quote lower than this ceiling price, states the approach paper.

A fixed reserve price of Rs. 100 per tonne of coal shall be payable, as per actual production by the mine allottee.

For power plants having uncontracted capacity, the bidder shall be restricted to cap its merchant capacity at 20% of the installed power capacity linked to the allotted coal mine. The reserve price in such cases shall not be less than Rs. 150 per tonne, stated the approach paper.

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    External Articles

    Sarah Stirk, “India’s coal inferno,” Ecologist, Jan 28, 2014.
    Rohit Chandra, “India’s Coal-ed Streak,” The Center for the Advanced Study of India, Nov. 21, 2011.
    “Sierra Club India Trip” Sierra Club, April 12, 2011
    Jeff Biggers, “India’s Coal Rush: Interview With Jharkhand Leader Bulu Imam” League of India, March 6, 2011
    “Jharkhand: A Disappearing World” Panos Pictures, accessed May 2011.
    Srinivas Krishnaswamy, “SHIFTING OF GOAL POSTS: Rural Electrification in India: A Progress Report,” Vasudha Foundation, March, 2010
    Jason Miklian and Scott Carney, “Fire in the Hole: How India’s economic rise turned an obscure communist revolt into a raging resource war,” Foreign Policy, September / October 2010
    Abhay Singh and Pratik Parija, “Coal India Seeks Faster Approvals, Imports, Overseas Miners”, Bloomberg, July 1, 2009.
    Ministry of Coal, “Coal Mining in India: The Past”, Ministry of Coal website, accessed June 2008.
    Ministry of Coal, 2007-2008 Annual Report”, Government of India Ministry of Coal. (Large Pdf)
    International Energy Agency, “Coal in India in 2005″, International Energy Agency website, accessed June 2008.
    U.S. Geological Survey, India 1994-2006
    “India”, World Coal Institute, undated, accessed June 2008.
    Country Profile: Focus on India”, Ecoal, World Coal Institute, July 2006.
    Tony Herbert and Kuntala Lahiri-Dutt, “Coal Sector Loans and Displacement of Indigenous Populations: Lessons from Jharkhand” Economic and Political Weekly, June 5, 2004
    Natalie Obiko Pearson, “India’s ‘astonishing auction’ pushes down global solar price,” Blombergy, December 5, 2011
    “Smoke Screen: Ambient Air Quality in India,” Community Environmental Monitoring, June 2006
    Salil Deshpande, “People power takes on thermal power,” Daily News and Analysis, October 24, 2006
    K. Raja, “Complete information on the Production of coal in India,” Preserve Articles, accessed February 7, 2012
    Markus Hyvonen and Sean Langcake, “India’s Steel Industry”, Bulletin, Reserve Bank of Australia, March Quarter 2012, pages 29-35.

    External References

    “India: National Ambient Air Quality Standards,” India Central Pollution Control Board, published 1984 and 1988.

  • Coal India to use GPS to stop pilferage
    It was announced in November 2011 that Coal India
    would use satellite technology to prevent shipments from being hijacked
    amid a shortage that has hit supplies to thermal power projects in the
    country. It is estimated that at least a quarter of 431 million tonnes
    of coal was stolen in transit.[104]

    Citizens Groups Tracking Coal Power and Mining in India

    Conservation Action Trust
    Environmental Protection Group, Orissa
    India Youth Climate Network
    Jharkhand Mines Area Coordination Committee
    Kalpavriksh Environment Action Group
    Kuntala Lahiri Dutta Australia
    Mines, Minerals and People

    Government Agencies

    Ministry of Coal (India)[2]

  • Carbon credits
    As of 2011, India has become the world’s second largest source of carbon credits,
    or Certified Emission Reductions (CERs), and has attracted foreign
    companies who trade them to the West. To qualify for saleable credits,
    companies in “developing” countries must demonstrate their emission
    reductions go beyond their “business as usual” plans. But according to
    July 2008 American diplomatic cables released by Wikileaks,
    most credits certified in India are questionable and do not meet
    international standards. The cable, written by staff at the United
    States Consulate in Mumbai, quote a senior Indian carbon credit assessor
    admitting no projects in India meet the international benchmark. R K
    Sethi, head of India’s Clean Development Mechanism
    Authority, admitted his colleagues simply take “the project developer
    at his word” when they approve carbon credit applications. Eva Filzmoser
    of CDM Watch, which campaigns for a more rigorous carbon credit system,
    said the cable effectively dismissed Indian schemes as “a source of
    extra revenue for projects that would have happened anyway.”
    Thirty-three coal power plants were among 1700 carbon credit project
    bids in India, and four of the power stations are among 700 projects
    approved to date.[102]

    A 2011 Stockholm Environment Institute report found that project documents for Indian Clean Development Mechanism
    projects “inflate the benefits of switching from subcritical to
    supercritical technology. Specifications of technologies currently
    available in the market suggest the relative efficiency and emissions
    improvements are likely to be on the order of 2 to 4%. In contrast,
    these coal projects are claiming improvements on the order of at least
    11%, on average.”[103]

  • Avatar

    November 2011: Activist nun who fought Indian mining companies brutally murdered
    In mid-November 2011 Sister Valsa John, an anti-coal activist in India, was killed in her village of Pachwara,
    a small community in the eastern Indian state of Jharkhand. She was
    allegedly killed by individuals hired by coal mining companies. The
    individuals beat and hacked her to death. Sister Valsa was 52 and took
    her vows was a member of Sisters of Charity of Jesus and Mary. It was
    reported that on numerous occasions she had gone to the police after
    threats where made on her life. The following was written in the Globe
    and Mail following her death:

    She was one of the remarkable breed of Indian religious figures who
    are grassroots social activists, who immerse themselves in the most
    marginalized and impoverished communities and work on literacy, basic
    health care and human rights. Sister Valsa said she did Jesus’s work by
    teaching the aboriginal people – known in India as adivasi or “tribals” –
    about their rights to their land.[99]
    On November 20, 2011 seven residents of Pachwara and adjoining
    Aloopara village, were arrested for the killing of Sister Valsa John.
    The Sister’s family in the India region of Kerala had alleged she faced
    death threats from the “mining mafia” in the area and was killed because
    of her campaign against the Panam Coal Company. However, police alleged
    that that locals were responsible for her death instead.[100]

    Prior to being killed, Sister Valsa John stood up for a rape victim
    in her community and a police report filed for the case. The alleged
    rapist, arrested days after the murder and later charged with that too,
    reportedly told the police that Sister Valsa was “an agent” of a private
    coalmine company.[101]

  • September 2011: Moving Planet day of action
    On September 24, an Indian delegation and US mountaintop removal
    activists will take part in “Moving Planet” day in support of fossil
    fuel-alternative energy, in West Virginia and India. The India
    delegation is calling on the World Bank to follow through with its
    proposal to dramatically cut funding for coal-burning power stations.[98]

    September 2011: Greenpeace calls for moratorium on new coal projects in Singrauli
    After releasing the 2011 report, “Singrauli: The Coal Curse,”
    Greenpeace called for a moratorium on new coal mining activities in the
    Singrauli region, based on the findings of a Greenpeace team in the
    region that the projects “deprive the livelihood of displaced people and
    ruin their health.” According to Priya Pillai, the communities are
    living in an atmosphere which is full of coal dust: “The people gave up their land for power that doesn’t reach them.”

    In Singrauli, the Mahan, Chhatrasal, Amelia and Dongri Tal II forest
    blocks, which were earlier categorised as ‘no go’, are awaiting approval
    for coal mining from the government. Officially, 5,872.18 hectares of
    forest in the Singrauli region had been marked for non-forest use after
    the Forest Conservation Act came into force in 1980. According to the
    divisional forest officer of Singrauli, another 3,229 hectares have been
    proposed for such activities.

    Singrauli is all set to become the country’s “power capital” with a
    number of power plants coming up in Madhya Pradesh, apart from the nine
    open cast coal mines which are going to start production by 2014. The
    combined investment of all these projects is estimated to be over Rs 1
    lakh crore.

  • May 2011: Mango farmers protest coal plants in Maharashtra’s Ratnagiri district
    Farmers marched to protest coal plants in Ratnagiri district of
    Maharashtra, in an area known as the Konkan Coast. The protests were
    organized by the Ratnagiri Zilla Jagruk Manch, an organization leading a
    campaign against seven thermal power plants proposed for the district.
    In Pawas, Ratnagiri district, villagers protested with a hunger strike.[94][95]

    In July 2011, JSW Energy
    – an Indian power producer controlled by the billionaire Jindal family –
    delayed expansion of a 3,200 MW coal plant in Ratnagiri as it waits for
    coal-pricing “clarity” from Indonesia and Australia.[96]

    June 2011: Three deaths believed to be related to coal mafia
    On June 2, 2011, a 15-member motorbike gang shot dead a realtor and
    two others at the Asansol courthouse in India, which the police said was
    likely a rivalry between coal mafias. Councillor Rohit Nunia from
    Kulti, a town 30km from Asansol whose municipality is run by a
    Trinamul-Congress alliance, is believed by police to be involved in coal
    smuggling and seeking revenge for an attempt on his life in December
    2010, although a Left Front leader claimed the coal connection crosses
    political parties.

    The 15 youths appeared suddenly, called realtor Ram Lakshman Yadav’s
    name, and began shooting. Within seconds, the realtor, a guard, and
    Mukesh Singh, had slumped to the ground while the gang chased Kamalesh
    Singh to the basement. Mukesh was sent to a hospital in Durgapur while
    the other three were declared dead on arrival at an Asansol hospital.
    Yadav had been riddled with 10 bullets, sources said, and the other two
    slain men too had multiple wounds.

    Jagmohan, the deputy inspector-general, said the slain realtor had
    two cases pending against him, one for possession of illegal arms in
    1994 and the other for a murder attempt in 1999. Another officer said
    three suspects had been detained, including CPI councillor Nunia: “An
    attempt was made on Nunia’s life six months ago but he escaped unhurt.
    He was involved in smuggling coal out of the IISCO factory.”[97]

  • April 2011: Four killed in protests against anti-encroachment drive in Jharkand
    The state of Jharkhand is home to one of the largest Adivasi (tribal)
    populations in India. It is also the location of an estimated 40% of
    the country’s deposits of coal, iron ore, uranium and other minerals.
    Jharkhand’s Adivasis have farmed and hunted on the land for millennia,
    but do not hold title deeds, but as the original inhabitants of the
    Indian subcontinent, Adivasis have ancient land rights protected by law.
    They are, however, being forced to leave their ancestral lands to make
    way for new mines, steel mills and hydroelectric projects, with little
    or no compensation.[90]

    Following resistance by local residence against house demolitions at
    Matkoria, four people were killed in clashes with police attempting to
    clear land owned by Bharat Coking Coal Limited. In addition, 21 people
    were injured and 27 arrested. Among the arrested were former ministers
    Bacha Singh and OP lal, Congress MLA Manan Mallick, and deputy mayor
    Niraj Singh. A curfew was imposed on Dhanbad town.[91] Among those killed in the fighting was Vikash Kuman, an auto driver.[91] Another fatality was that of Sanjay Paswan.[92]The
    protesters blocked National Highway 32 between Dhanbad and Bokaro for
    several hours. Police used lathis and teargas to disperse protesters. A
    Mob set fire to offices of Bharat Coking Coal Limited at Kunsunda and
    Godhar. Protesters also set on fire a police check post in Matkuriya as
    well as three police vehicles. Nine people were reported in critical
    condition with bullet wounds. Among the injured were a half dozen
    members of the media, including four camera men. Most of those being
    subjected to the anti-encroachment drive had settled in the area 80
    years earlier.[93]

  • January 2011: 25 people injured in Chhattisgarh protests
    On January 17, 2011, at least 25 people were injured and over a
    hundred were taken into custody during protests by farmers against land
    acquisition by KSK Energy Ventures Limited, sponsors of the 3,600 MW KSK Mahanadi Power Project
    at Nariyara village in the Akaltara district of Chhattisgarh, about 170
    km from the state capital Raipur. At issue in the protests is the prime
    quality of the agricultural land being made available for an estimated
    40,000 MW of power plants planned for the Janjgir-Champa district. State
    Congress president Dhanendra Sahu told reporters, “It’s a foolish
    decision, Janjgir-Champa has highly productive farm land and also has
    access to irrigation facilities. This is a conspiracy by the state
    government to hand over farmers’ prime land to industries.”[88]

    February 2011: Two killed, 25 injured in Andhra Pradesh

    “No power to people?”

    On February 28, 2011, in a set of clashes sparked by construction of the Bhavanapadu Thermal Power Project by East Coast Energy,
    police in Srikakulam fired into villagers, killing two people and
    injuring nearly 25 others. The plant at the center of the violence was
    in the same district as the coal plant where two people were killed the
    previous July 2010, protesting the Nagarjuna Construction Company Sompeta Thermal Plant.
    The dead were identified as Sirapu Yerraiah (36) of Sirapuvani Peta and
    J. Nageswara Rao (35) of Akashalakkavaram. At least two of the injured
    were hit at close range with rubber bullets. Police used guns, teargas,
    and lathis against villagers, who used stones and sticks. After police
    threw smoke bombs in Vadditandra village, 50 houses were gutted. A
    police jeep was burned by villagers.[89]

  • January 2010: Hanakon thermal project shelved after intense protest; protesters tortured

    Unidentified woman arrested during Hanakon protest; 28 protesters later testified to torture while in police custody

    On July 18, 2009, thousands rallied in Karwar to protest the proposed
    Hanakon thermal station. The rally began at the Maladevi ground, and
    was followed by a meeting at Savitha circle. A series of speakers
    denounced the project as a threat to a biologically sensitive region,
    and criticized the company’s suppression of protest. The protest passed
    the office of Ind Bharat Company, sponsor of the project. Protesters
    allegedly pelted the offices with stones, then attempted to block the
    national highway. A coalition of 24 groups submitted a joint memorandum
    opposing the project.[83]
    Following a call for a bandh, or general strike, in response to police
    violence against protesters in Hanakon village, schools and colleges
    closed in August 2009. The bandh was also observed by shopkeepers of
    Nandanagadda area of Karwar. Students from multiple colleges marched to
    primary and high schools in Karwar, closing in each school.[84] The project was shelved in January 2010.[85][86]
    According to S R Nayak, chairman of the State Human Rights Commission,
    police tortured agitators in custody. During a hearing sponsored by the
    Commission, 40 people testified, including 28 victims of torture at the
    hands of police.[87]

  • July 2010: Two killed, 150 injured in Andhra Pradesh

    July 2010: Protesters beaten with lathis by riot police in Srikakulam

    On July 14, 2010, police in Adhra Pradesh’s Srikakulam district fired
    on farmers and fisherman protesting a 2,640 MW coal plant under
    construction by Nagarjuna Construction Company
    (NCC), killing two. In addition, 150 people were injured, including 45
    policemen, during clashes between protesters and police. In the wake of
    the violence, police were deployed in about a dozen villages and banned
    assembly by more than five persons.[82]

  • World Bank financing
    In October 2010 Green groups criticized the U.S. Export-Import Bank
    (Ex-Im Bank) for its expected final approval of hundreds of millions of
    dollars in subsidized federal financing for the 4,000 megawatts (MW)
    Sasan coal power plant and mine in India.

    The groups also accused the Bank of falsely linking renegotiation of the coal financing to a renewable energy project.

    “Ex-Im Bank flip flopped on this massive climate-damaging
    project–and belly flopped on the first major test of the agency’s
    carbon policy,” said Michelle Chan, director of the economic policy
    program at Friends of the Earth.[79]

    Community impacts and resistance
    The United Nations estimates that more than 25 percent of India’s 1.2
    billion people live without electricity. Yet many communities protest
    new coal mines and plants because it displaces them from their land, and
    they do not receive the electricity generated.[80]

    August 2007: 6,000 people face displacement in Madhya Pradesh
    Five villages — Sidhikhurg, Sidhikala, Tiyara, Jhanjhi, and Harrhawa
    — covering approximately 3,000 acres and with a population of 10,000
    people are slated for displacement by the Sasan Ultra Mega Power Project
    in the far western corner of Madhya Pradesh, a state located in central
    India. The project will use caol from coal mines located 20 to 25
    kilometers away, in Mohar, Amlori, and Chatrasal. The project is
    sponsored by Reliance Power.[81]

  • Citizen Action

    Arrest of indigenous rights activists
    On May 28, 2011, two indigenous rights activists, Ramesh Agrawal and
    Dr Harihar Patel, were arrested in the central Indian state of
    Chhattisgarh and denied release on bail.

    The state police charged the two men with “circulating defamatory
    material”, “disrupting public order” and “causing alarm and panic among
    the public” at a May 8, 2010 mandatory public consultation, held by the
    state pollution board at Tamnar village, relating to the proposed
    expansion of a coal-fired plant run by Jindal Steel and Power.

    Agrawal and Patel expressed concerns that the expansion would lead to
    the forcible acquisition of lands from the surrounding local
    communities by the authorities. The two activists had objected to the
    proposal and cited an official inspection report which stated that the
    expansion began before the mandatory clearances were given. Ramesh
    Agrawal also successfully petitioned India’s Ministry of Environment and
    Forests to temporarily suspend the terms of reference for the
    expansion. Following a complaint relating to the delay, the state
    authorities decided to arrest the two activists.

    Ramesh Agrawal works for the environmental rights organization Jan
    Chetna, and Dr Harihar Patel practices indigenous medicine. They had
    been actively campaigning against the pollution caused by existing
    industrial projects, including coal plants, and the potential negative
    environmental impact of proposed industrial projects in central
    Chhattisgarh. The two activists have been at the forefront of the
    campaign for the public disclosure of information relating to projects
    which affect local Adivasi (Indigenous) communities and for ensuring
    that these are available to the communities. Their arrest, Amnesty
    International believes, is intended to stop their peaceful campaign

    The two activists were sent to Raigarh prison until June 3, 2011, and
    a local court rejected their appeals for release on bail on June 2.
    Ramesh Agrawal, who complained of hypertension, was taken for treatment
    at a government-run hospital where he is being kept chained to his bed.[78]

  • The report argues that: “These projects in pipeline represent a
    massive overcapacity in the making. Thus, valuable and scarce natural
    resources of land, water, gas and coal will be allocated to projects
    that are not required. Crucially, land for such TPPs [thermal power
    plants] is invariably acquired compulsorily by governments by using the
    Land Acquisition Act (LAA), which allows forcible acquisition for a
    public purpose. Given that the thermal capacity in pipeline is far in
    excess of that required, it is clear that many of these plants will not
    serve a public purpose. Hence, the use of the LAA to acquire land for
    such TPPs cannot be justified.

    “…The report therefore recommends an immediate moratorium on any
    further environmental clearance to new power plants. Further, it also
    recommends that from the 200,000 MW that have already been given
    environmental clearance, projects with very high social and
    environmental impacts, projects that do not have broad local acceptance,
    and projects leading to sub-optimal use of transmission, fuel, land and
    water should be put on hold. It also calls for simultaneously
    initiating a fully transparent deliberative process to (a) completely
    revamp the environmental clearance procedures of power plants, so as to
    minimise social and environmental impacts of power projects, and mandate
    prior regional carrying capacity studies to decide on the extent of
    projects in an area, (b) to ensure a coordinated approach of different
    agencies for optimising fuel, land and water allocations for different
    projects and (c) to reassess the long term demand for power and measures
    to meet this demand in an optimal manner, including energy efficiency
    as well as renewable energy, so as to improve energy security and
    minimise the social and environmental damage due to power sector

  • New coal plants
    According to the 2011 report “Thermal Power Plants on The Anvil : Implications And Need For Rationalisation”
    by Prayas (Initiatives in Health, Energy, Learning and Parenthood) — a
    non-governmental, non-profit organisation based in Pune — the India
    Ministry has given environmental clearances to coal and gas-based power
    plants whose capacity totals 192,913 MW, while another 508,907 MW are at
    various stages in the environmental clearance cycle, for a total of
    701,820 MW. Coal-based plants account for 84% of the projects. These
    additions are more than six times the currently installed thermal
    capacity of 113,000 MW.

    Many of the projects in pipeline will be geographically concentrated
    in a few areas: 30 districts (4.7% of the total 626 districts in India)
    will have more than half of the proposed plants, with their capacity
    adding up to about 380,000MW. Fifteen districts each have plants with
    capacities totaling 10,000 MW or more. Districts Janjgir-Champa and
    Raigarh in Chhatisgadh have the highest concentration of proposed plants
    in the country, with 30,470 MW and 24,380 MW planned, followed by
    Nellore in AP with 22,700 MW. The districts of Rewa (17,820 MW),
    Singrauli (15,240 MW), Sonbhadra (7,638 MW), Sidhi (5,240 MW, not in the
    top 30) and Allahabad (5,280 MW, not in top 30) are adjoining, and add
    up to a proposed capacity of 51,218 MW.

    The private sector accounts for 73% of all projects, with 10 private corporate groups planning to build about 160,000 MW.

  • Reports

    Health costs of coal
    The 2013 study “Coal Kills: An assessment of death and disease caused by India’s dirtiest energy source,”
    conducted by the NGOs Conservation Action Trust (CAT), Urban Emissions,
    and Greenpeace looked at emissions data of 111 coal-fired power plants
    (generation capacity of 121GW) and found that in 2011-2012:

    emissions from Indian coal plants resulted in 80,000 to 115,000
    premature deaths and more than 20 million asthma cases from exposure to
    total PM10 pollution; and
    the monetary cost associated with the health impacts of coal exceed
    Rs.16,000 to 23,000 crores (USD $3.3 to 4.6 billion) per year.
    NASA calculates that sulfur dioxide emissions from power plants in India increased by more than 60 percent between 2005 and 2012, based on satellite data.

  • India and climate change mitigation
    In August 2010, the Indian government announced it was sanctioning $6.4 billion to finance efforts to mitigate the impacts of climate change
    on the environmentally sensitive and populous areas of the country. The
    funds will be used to achieve the targets and goals mentioned in the
    National Action Plan on Climate Change released by the Prime Minister’s
    Council on Climate Change in 2008. The plan of action to mitigate the
    impacts of climate change have been subdivided into eight broad
    categories covering the most critical areas: energy efficiency, solar
    energy, sustainable agriculture, water conservation, sustaining the
    Himalayan ecosystem, and building a knowledge base for understanding
    climate change and its impacts better.[62]

    India and renewable energy
    In May of 2011 it was reported that India plans to invest $37 billion
    to create 17,000 MW of renewable energy generation by 2017, the
    Ministry for New & Renewable Energy said in a statement. The
    projected investment would come primarily from the private sector.

    The current operating renewable energy capacity in India is 20,000
    MW, which accounts for 11% of the total power capacity in the country.
    The major share of power as of 2011 comes from coal which accounts for
    40% of the country’s energy usage.

    The Indian government had quadrupled its renewable energy targets
    earlier in 2011 as part of its national plan to reduce carbon intensity
    which aimed at installing 74.4 GW of renewable energy capacity by 2022
    and reduction in carbon emissions intensity by 20-25% of 2005 levels
    over the next ten years.[75]

    In February 2012, India’s largest state-run lender to electricity
    utilities, Power Finance Corporation, announced it will increase lending
    to wind and solar plants from 1.2% to 4% of its total lending budget.
    Chairman Satnam Singh cited the volatility of coal prices as a factor in
    the decision. Praveen Kadle, managing director for Tata Capital Ltd.,
    says escalating investment risk in coal plants has movitaved some
    investors to take their money elsewhere.[76]

  • Indian company buys stake in Australian coal port
    In April 2011, Indian company Adani Enterprises, the country’s largest coal importer, agreed to buy Australia’s Abbot Point Coal Terminal for A$1.83bn ($1.98bn).

    The purchase was among a number placed by Indian groups in Australia
    and elsewhere as the country to secure energy resources to meet rising
    demand for power to complete infrastructure projects in India.[72]

    Funding and Programs for Clean Energy and Climate Change

    India Rejects Calls to Reduce Greenhouse Gas Emissions
    In June 2009, Environment Minister Jairam Ramesh said that India will
    reject any international treaty to reduce greenhouse gas emissions.
    Ramesh said that the effort to cut global warming emissions should
    instead be undertaken by industrialized countries. Ramesh said India has
    pledged to contain per capita CO2 emissions below those of
    developed nations, but said, “There is no way India is going to accept
    any emission reduction target, period, between now and the Copenhagen
    meeting and thereafter.”[73]

    India carbon tax
    On July 1, 2010, India imposed a carbon tax
    on coal producers, and expects to raise $535 million, the first step by
    Asia’s third-largest energy consumer to charge companies for fossil
    fuel pollution. Coal, used to fire more than half of India’s electricity
    generation, will be taxed at 50 rupees a metric ton to help fund
    clean-energy projects. Coal producers nationwide will be charged the tax
    starting July 1, 2010, the Central Board of Excise and Customs said in a
    notice on its website after the levy was proposed in the federal
    government budget in February. The clean-energy levy will also apply to
    imported coal, Finance Minister Pranab Mukherjee said in his budget
    speech. Coal emits more carbon dioxide per unit of energy than other
    fossil fuels, according to the U.S. Energy Information Administration.[74]

  • It was announced in November 2011 that Coal India was in talks with Peabody Energy and Massey Energy
    about acquiring two of the companies’ mines. Coal India has budgeted
    $1.2 billion to buy assets in the U.S., Indonesia and Australia during
    the year ending March 2011 as it battles a widening gap between domestic
    coal supply and demand.[64]

    In early January 2011, MMTC, India’s largest state-run trading
    company, announced that India was going to increase its coal imports
    from South Africa. Indian demand for South Africa’s coal contributed to
    Asia overtaking Europe in 2009 as the largest shipping destination for
    the fuel used in power plants.[65]

    NTPC, India’s largest state-owned energy provider, is “exploring”
    bilateral pacts with African nations to increase coal imports.
    Mozambique currently has such an arrangement with India.[66] The first shipment of 37,600 metric tons of coal was made January 18, 2012 by Vale, a private Brazilian based company.[67]

    Peabody Energy Corporation reports that it will “rely on” demand for
    coal in India, among others, as demand in the United States decreases.[68]

    In January 2012, Russia’s Energy Minister Sergey Shmatko said the country will double its coal exports to Asia by 2030.[69]

    BP’s Energy Report details new projections that India will burn more
    coal than China by 2030. The report notes a plateau in Chinese coal
    demand following a stabilizing industrial system that will push India
    into the top spot.[70]

    In July 2012 it was reported that India will need to import 185
    million tons of coal annually by 2017 to the country’s growing
    shortfalls. A draft paper by the government’s commission on energy
    warned of “an urgent need to take effective measures to step up coal

  • Future imports
    Tata Power,
    a Tata group company, is looking for a strategic stake in Indonesian
    and South African coal mines for supply of 6-8 million tons of coal to
    fuel its 2x800MW thermal power project, the Mundra Ultra Mega Power Project. The company targets to acquire a stake that will assure 8-9 million tons of coal supply.[61] Tata Power is also seeking out coal from East Kalimantan and Mozambique.[62]

    Coal India (CIL) plans to forge new deals with a mix of domestic and foreign companies. The latter includes BHP Billiton, Rio Tinto, and Vale of Brazil, as well as Vedanta Resources,
    a London-based metals producer that has embarked on a US$10 billion
    expansion of Indian coal mining to also increase its output of zinc, lead, and silver, and to power its expanding Jharsuguda aluminum
    smelter in Orissa. The Coal Ministry in early 2010 announced it was
    “encouraging” CIL to acquire or develop coal mining operations in
    Mozambique, Australia, Indonesia, South Africa and the US. The state
    company is also negotiating with Peabody Energy for stakes in four Australian mines, aimed at producing12 mt per annum by 2012.[62]

    On August 2, 2010, news reports said India’s Adani Group will buy a coal tenement in Queensland’s Galilee Basis from Australia’s Linc Energy.
    The deal could be worth more than 1 billion Australian dollars (900
    million US), and would be the first time an Indian company has bought a
    coal seam rather than invested in a coal mining company. Adani is
    India’s largest coal importer and a key player in India’s plans to
    double power generation over the coming decade: there are 28 coal-fired
    plants under construction and another 28 on the drawing board. The value
    of shares in Linc has risen nearly 60 per cent since the start of July
    in anticipation of the sale of three Queensland coal assets. Linc’s
    primary business is coal seam gas.[63]

  • In 2011, coal imports rose an estimated 7.6% from 2010 to 118.4
    million metric tons. This fell short of previously projected imports due
    to economic factors. [58]
    It was announced in March 2012 that India’s Coal Ministry was looking
    to remove a duty on coal imports to the country, potentially making it
    easier to import coal into India.[59]

    In July 2012 Coal India
    reported that they planned to import up to 30 million metric tons of
    coal in 2012 in order to meet rising domestic demand and mitigate power

    India is dependent on a number of coal terminals to bring these imports into the country. (See map at bottom of page.)

    India coal ports

    Annual Capacity (MM Tonnes)

    Bedi Port

    Cochin Port


    Dahanu Port

    Dahej Port

    Dharamtar Port

    Ennore Port
    Tamil Nadu

    Gangavaram Port
    Andhra Pradesh
    Gangavaram Port Ltd.

    Haji Bunder Port (MBFL)
    Mumbai Port Trust

    Haldia Port
    West Bengal

    Nhava Sheva Port
    Jawaharlal Nehru Port Trust

    Kakinada Port
    Andhra Pradesh

    Kandla Port

    Karaikal Port

    Krishnapatnam Port
    Andhra Pradesh

    Magadalla Port

    Mormugao Port


    Muldwarka Port

    Mundra Port
    Adani Enterprises

    New Mangalore Port

    Okha Port

    Panjim (Panaji) Port

    Paradip Port


    Pipavev Port
    APM Terminals

    Porbandar Port

    Port of Chennai
    Tamil Nadu


    Sikka Port

    Tuticorin Port
    Tamil Nadu


    Visakhapatnam Port
    Andhra Pradesh

  • Coal Exports
    India has almost negligible coal exports, estimated to be at only 1.5 million tonnes in 2005.[12]

    Coal Imports

    Note: 1 metric ton (tonne) = 1.10231 short tons

    Imports of Coal by India and year (million short tons)*[48]



    (*Estimates are from the U.S. Energy Information Administration’s International Energy Statistics.)

    In 2009, India imported 67 mega tons (Mt) of coal, according to estimates by the World Coal Institute.[49] According to the U.S. EIA, in 2009 India mined 613.4 million, imported 77 million, and used 680.9 million short tons of coal.[50]

    Indian coal imports are rising rapidly. According to India Coal
    Market Watch, from April 2008 through March 2009, the country imported
    59 million metric tons (tonnes); from April 2009 through March 2010
    imports rose 24 percent to 73.25 million tonnes.[51] India’s coal imports rose by 14 percent from 2009, to 86.28 million metric tons in 2010.[52]

    In 2010, Chairman of Coal India
    Partha Bhattacharyya projected that India may import close to 100
    million metric tons of coal in the year 2010 – ending March 31, 2011 –
    to meet growing demand, as India generates 70% or more of its
    electricity by burning coal.[53]
    In February 2011, Coal Minister Sriprakash Jaiswal projected that
    2010/2011 imports would jump 70 percent to 142 million tonnes.[54]
    In September 2011 it was announced that the country could import
    approximately 114 million tonnes of coal in 2011/12, up by over a third
    from the 2010. Imports will come primarily from Indonesia and South
    Africa.[55] It was also reported that coal imports were up about 70 percent in the first six months of the year ending March 2011; [56]between April-October 2011, coal imports rose 51% compared to the same period during the previous year.[57]

  • The shortage of coal, rising coal prices, and the effect on proposed plants
    Forty-two gigawatts of planned capacity has been mothballed as of
    Jan. 2012, due to coal supply bottlenecks and price curbs. Utilities won
    rights to build plants by bidding prices at which they would sell
    electricity. The utilities that have put additional coal capacity on
    hold had bid to sell electricity at an average of 2.5 rupees (5 cents) a
    kilowatt-hour, while current fuel prices put the cost of producing
    power at about 3 rupees a kilowatt-hour, slowing the growth of coal

    The coal crisis has made financiers such as Infrastructure
    Development Finance Company (IDFC) wary of coal projects. In December
    2011, IDFC managing director and CEO Rajiv Lall told The Times of India that IDFC was halting its financing of new coal-fired power plants. In an interview, Lall said,

    “The biggest problem is in the power sector due to (un) availability
    of fuel, notably coal, and due to continuing challenges of the state
    electricity boards (SEBs). Coal India never really believed that we can
    add 50,000 mw capacity addition in the plan period. It was unprepared to
    meet the extra demand. It is also true that they have had challenges in
    terms of developing new mining assets because of the environment
    debate. Thousands of crores ave been invested in generating plants that
    are about to come on stream and will not have enough coal to allow them
    to function at their optimal capacity. This has all kinds of potential
    knock-on effect. As cash generation will decline, debt servicing
    capacity shrinks, banks will have to either restructure loans or they
    will have less capital to fund growth. As banks become nervous on
    funding such projects, they are not financing to build more capacities.
    Problems in land acquisition and environment have led to most
    entrepreneurs losing risk appetite. Public sector banks are not lending
    to SEBs. The structural problems can’t be brushed under the carpet and
    tariffs have to be raised, which some states have done. We don’t have
    any exposure to SEBs. We have ring-fenced our exposure to coal-fire
    projects very well. But if SEBs start defaulting, then we can’t help it.
    We are basically not lending to new coal-fired projects… We will not
    get back to thermal until a couple of these issues are solved.”[47]

  • Environment Minister approves sixteen coal projects
    On February 11, 2011 India’s Environment Minister Jairam Ramesh
    approved a total of sixteen new coal projects that were on hold due to
    environmental regulations. Coal Minister Sriprakash Jaiswal stated that
    the environment minister’s okay of Coal India’s
    proposed coal mine projects was due to pressure from higher levels in
    the Indian government. The Coal Minister also stated that environmental
    regulations are one of the reasons why the growth of Coal India – which
    produces 80 percent of the country’s coal – dropped to 2 percent in
    2010, compared to 2009’s figure of almost 7 percent. However, the Coal
    Minister said the areas off limits to coal mining would remain off
    limits, despite the likely increase in the country’s coal use.[44]

    DB Power’s proposed Dharamjaigarh coal mine and plant
    DB Power
    is a subsidiary of DB Corp Ltd, a media conglomerate in India. DB Power
    is seeking the acquisition of 693.32 hectares of land for a coal mine, a
    project in Dharamjaigarh that would displace an estimated 524 families
    from six settlements to extract 2 million tonnes of coal annually. The
    coal would be used to fuel a 1320 MW thermal power plant that would be
    built in the adjoining district of Janjgir. After public protest against
    the proposed mine, DB Power submitted an affidavit pledging not to
    conduct any mining operations in nagar panchayat land. A supplementary
    letter filed at a Feb. 2011 public hearing promised to re-site any
    proposed water tanks and coal piles from nagar panchayat land to the
    remaining leased area. Four villages, however, would still lose their

  • Andhra Pradesh, India
    As of 2011, the installed capacity in the state of Andhra Pradesh is
    15,800 MW. According to a survey by the Central Electricity Authority,
    the peak electrical demand in the state is expected to reach 28,215 MW
    by 2021. According to Grist, there are 117 proposed power plants in the
    state, geared to generate an additional 77,800 MW; of this, 55,925 MW
    will be coal-based.[39]
    According to the Guardian, seven major and more than 30 smaller
    coal-powered power stations are planned, together intended to have a
    capacity of 56GW.[40]

    There has been community resistance against coal plants in Andhra Pradesh, particularly in the Srikakulam District, where six coal plants are proposed including the Nagarjuna Construction Company Sompeta Thermal Plant,
    and the Krishnapatnam port, where 24 plants are proposed. Police are
    reported to be unleashing violence and intimidation to suppress
    villagers as they struggle to protect their livelihood and habitats.[41]

    The Nagarjuna Construction Company Sompeta Thermal Plant
    is a 2640 MW coal-fired power plant proposed for Sompeta in Andhra
    Pradesh, India. In the wake of highly publicized protests and the
    killings of local residents by police, the project’s environmental
    clearance was revoked by the ministry of environment and forests in
    July, 2010.[42]

    The Bhavanapadu Thermal Power Project is a 2,640 megawatt (MW) coal-fired power station proposed by East Coast Energy to be constructed in Andhra Pradesh, India.[43]

  • Estimated number of new plants approved
    According to the Sierra Club, India approved 173 coal fired power plants in 2010.[36]

    According to Economic and Political Weekly, if you count only
    projects that have a capacity of 500 MW or above, data from the Ministry
    of Environment and Forests (MoEF) indicates that since 2006,
    environmental clearance has been given to nearly 200 thermal coal
    projects for generating close to 220,000 MW of power: “To put this
    number in perspective, the total existing electricity generation
    capacity in the country – from thermal, nuclear, hydro, and other
    sources – was just over 176,990 MW at the end of June 2011 (CEA 2011).
    The thermal generation capacity expansion underway works out to 1.3
    times the total generation capacity in the country.” The top six
    coal-mining states – Jharkhand, Orissa, Chhattisgarh, West Bengal,
    Madhya Pradesh (MP), and Andhra Pradesh (AP) – account for close to half
    of the capacity addition. Tamil Nadu, Maharashtra and Gujarat account
    for a third. The remaining is spread across Uttar Pradesh (UP), Bihar,
    Haryana, Rajasthan, Karnataka, Punjab, Delhi and Tripura.[37]

    According to an August 2011 report
    by Prayas Energy — a non-governmental, non-profit organisation based
    in Pune — the India Ministry has so far given environmental clearances
    to coal and gas-based power plants whose capacity totals 192,913 MW,
    while another 508,907 MW are at various stages in the environmental
    clearance cycle, for a total of 701,820 MW. Coal-based plants account
    for 84% of the projects. These additions are more than six times the
    currently installed thermal capacity of 113,000 MW.[38]

  • Trapped Miners
    During a major power blackout in India in late July 2012, two hundred
    workers became stranded in three coal mines in West Bengal when a
    blackout affecting half the country cut off electricity to elevators in
    their underground pits, a mining company official said.[32]

    Proposed coal projects

    Proposed coal-to-liquids projects
    In March 2009 the Indian government announced that it had awarded two
    coal blocks for the development of two different coal-to-liquids
    projects in the state of Orissa. These are:

    the north Arkhapal coal block to Strategic Energy Technology Systems Ltd, a 50:50 joint venture between Tata Power and Sasol Synfuels International, the international synfuels subsidiary of Sasol. It is projected that the $10 billion.[33] plant would produce 80,000 barrels of crude oil a day.[34]
    In early 2010 Orissa’s Chief minister Naveen Patnaik told reporters
    that “though we have not identified the location, the proposed plant
    will be somewhere in the state.” It was also reported that the coal
    would come from the Srirampur area in Talcher. The Business Standard
    also stated that the project “requires 3,000 acre of land for its main
    plant, additional land would be required for setting up coal mines,
    benefication plants, coal handling plants, water reservoirs, power
    plants and a township” and would involved the establishment of a 1600
    megawatt power station. The newspaper also reported that the joint
    venture was “yet to make a formal application” for the plant the company
    was pressing the state government “to provide adequate facilities for
    early commissioning of the project.”[35] (See Srirampur Coal-to-Liquids Project for more details).

    the Ramchandi block to Jindal Steel and Power
    Limited (JSPL) is projected to produce 80,000 barrels per day will use
    the German Lurgi technology. The plant is proposed to be established at
    Kishore Nagar in Angul district of Orissa. Waste coal from the washery
    is proposed to be used as fuel for a 1,350MW power station. [34] (See Kishore Nagar Coal-to-Liquids Project for more details).

  • Coalbed methane in India
    On January 4, 2011, Great Eastern Energy
    said it had signed an agreement with the Tamil Nadu government for the
    development of gas reserves lying below coal seams in the Mannargudi
    block in the state. Great Eastern was awarded the Mannargudi block
    located near Tiruchirapalli in June 2010 in the fourth round of bidding
    for Coal Bed Methane (CBM) blocks. Great Eastern is the first company to
    commercially produce CBM in India. Great Eastern is currently producing
    CBM from its block in Raniganj, West Bengal, and is already supplying
    CBM to various industrial customers in and around Asansol/Durgapur, West
    Bengal as well as syngas to vehicles through India Oil petrol pumps and, potentially, Bharat Petroleum
    outlets as well. The Mannargudi block is spread over an area of 691 sq
    km and the CBM resource is estimated at 0.98 trillion cubic feet.[29]

    Mining Deaths
    The Union Ministry of Coal released information stating that 342
    people died in accidents in mines operated by public sector undertakings
    (PSUs) over the past four years. “Experts say that non-compliance with
    safety regulations have led to these deaths.” The companies with the
    most accidental deaths are the South Eastern Coalfields Limited (SECL)
    with 67 deaths, Singareni Collieries Company Limited (SCCL)with 54
    deaths, and Western Coal Limited (WCL) with 51 deaths. The government
    ascribes most of the accidents to roof collapse, inundation, explosion
    of fire damp, coal dust explosion, premature collapse of workings,
    ignition of fire damp, water gas explosion and fire/suffocation by
    gases. “All these companies are subsidiary companies of Coal India
    limited (CIL).” Souparno Banerjee of Centre for Science and Environment
    (CSE) argues that “safety practices in most mines are inadequate”…
    “Even the health aspect of miners is being neglected which causes
    casualties in the long term,” he said.[30]
    However, not all mining deaths are reported. In the state of Meghalaya,
    some state laws overrule national ones. Some state laws were enacted to
    protect small coal industries, but “many mines are owned by state and
    national lawmakers or their relatives”. “[D]eaths in Meghalaya aren’t
    recorded or investigated, with most hushed up to avoid mines being
    shuttered.” [31]

  • Another major coal mining operation is Singareni Collieries Co. Ltd., India’s oldest coal miner, and the second largest Indian coal miner after Coal India.
    SCCL operates 13 opencast and 42 underground mines in the Godavari
    River Valley, in southern India (Andhra Pradesh), producing 52-million
    tons a year of coal, as of 2011.[25]
    SCCL is 50% owned by the Andhra Pradesh State government and 50% by the
    Indian government. In 2006, it had an annual capacity of 18 million

    Children miners
    An estimated 70,000 children work in the coal mines in the Jaintia
    Hills in northeast India, according to Impulse, a children’s rights
    organization working to end the practice. The youngest of the miners are
    just 7 years old. An article in The Christian Science Monitor
    reported that many work for a few dollars a day – $5 per cartload of
    coal – in narrow, unreinforced seams in 5,000 small mines. Most are
    Nepalese, who are allowed to apply to work there, but many are
    Bangladeshis, who are there illegally. Others are Indian. Some have been
    sold by their families as indentured laborers, according to Impulse.[27]

    The number of children working in the state’s 5,000 coal mines is a
    matter of dispute, with Impulse estimating tens of thousands and local
    politicians putting it in the hundreds. In May 2011, the LA Times
    reported that most of the children miners work in Meghalaya, where the
    government “with only seven labor inspectors and no vehicle, all but
    ignores child labor and safety problems, keen to goose the economy” and
    that the government “acknowledged that 222 children worked in 20
    villages mining and hauling coal and doing related jobs, but it has done
    nothing to rescue them.”[28]

  • Major Indian Coal Companies
    The World Coal Institute states that “almost all of India’s 565 [coal] mines are operated by Coal India
    and its subsidiaries, which account for about 86% of the country’s coal
    production. Current policy allows private mines only if they are
    ‘captive’ operations, i.e. they feed a power plant or factory. Most of
    the coal production in India comes from opencast mining, contributing
    over 83% of the total production. Coal India employs some 460,000 people
    and is one of the largest five companies in India.”[24]

    The USGS estimates coal production from major wholly Coal India owned subsidiaries as being:

    Bharat Coking Coal Limited;
    Bihar Coking Coal Ltd which operates in Bihar and West Bengal and has an annual capacity of 26 million tonnes;
    Central Coalfields Ltd which operates in Bihar and has an annual capacity of 27 million tonnes;
    Eastern Coalfields Ltd which operates in Bihar and West Bengal and has an annual capacity of 21 million tonnes;
    Mahanadi Coalfields Ltd which operates in Orissa and has an annual capacity of 21 million tonnes;
    North-Eastern Coalfields Ltd which operates in Assam and has an annual capacity of 640 million tonnes;
    Northern Coalfields Ltd which operates in Indian Madhya Pradesh and Uttar Pradesh and has an annual capacity of 24 million tonnes;
    South Eastern Coalfields Ltd. which operates in Madhya Pradesh and has an annual capacity of 36 million tonnes;
    Western Coalfields Ltd. which operates in Madhya Pradesh and Maharashtra and has an annual capacity of 18 million tonnes;
    Neyveli Lignite Corporation which operates in Tamil Nadu and has an annual capacity of 17 million tonnes of lignite.

  • Coal leases
    In March 2012, it was reported that India’s government lost hundreds
    of billions of dollars by selling coalfields to companies without
    competitive bidding, according to a leaked audit report that the auditor
    itself called misleading. Opposition party leaders demanded an
    explanation from Prime Minister Manmohan Singh of why about 155
    coalfields were sold to select private and state-run companies without
    competitive bidding, resulting in an estimated loss of nearly $210

    Coal Reserves
    A report issued by India think tank Energy and Resources Institute
    (TERI) in December 2009 estimated that the country has approximately 45
    years’ worth of usable coal reserves. Previous estimates from geological
    studies had suggested that India had about 267 billion tonnes of coal,
    including approximately 105 billion tonnes of proven reserves, which
    could last for up to 200 years. The TERI report said the revised
    estimate showed the importance of developing policy initiatives for renewable energy, including aggressive promotion of solar energy
    technologies. Rajendra Pachauri, TERI’s director-general, said, “It’s a
    myth that India has a virtually unlimited supply of coal. Much of our
    coal is so deep that it cannot be mined.” According to the report, India
    will have to increase its coal imports to about 1,300 million tonnes
    per year by 2030, unless initiatives are launched to lessen the
    country’s dependence on coal – if renewable energy initiatives are
    launched effectively, coal imports could be restricted to 200 million
    tonnes per year.[20]

    In August 2010, the EIA projected that India has coal reserves of 62,300 million short tons.[21]

    In May 2011, the coal ministry said it plans to redefine the
    boundaries of 28 coal blocks in the country, to “help in improving
    availability of the essential fuel by 34 per cent.” Out of a total 602
    coal blocks in nine coalfields in the country, the environment ministry
    said the available areas for mining in the country would increase by up
    to 64 per cent from 59 per cent, according to estimates of the coal

    On June 24, 2011, India Environment Minister Jairam Ramesh approved
    coal blocks in Chhattisgarh, after overruling the Forest Advisory
    Committee. Out of three blocks – Parsa East, Kante Basan and Tara in the
    Hasdeo-Arand forest region – the first two are allotted for Rajasthan
    and third is for Chhattisgarh.[23]

  • Domestic Coal Mining
    Between 1996 and 2005 Indian hard coal production increased from 285
    million tonnes to 397.7 million tonnes in 2005. In addition, 37.1
    million tonnes were estimated to have been imported in 2005 with a total
    coal consumption of 433.4 million tonnes. The World Coal Institute
    estimates that coal demand could grow to 758 million tonnes in 2030.[12]

    In 2011 it was reported that India was the third largest miner in the
    world and will produce around 554 million tonnes of coal, but will burn
    696 million.[13][14]

    Government sources said the production target for Coal India (CIL) is
    likely to be set at 464 million tonnes (MT) for 2012-13. CIL has
    decreased its current production target to 440 MT from 452 MT, and has
    also decreased its production target for the 2011-12 to 448 MT. CIL has
    emphasized delays in the grant of forestry and environmental clearances
    for decreased output.[15] Other problems include coal shortages and high fuel prices.[16]
    In January 2012 the chairman of CIL, Nirmal Chandra Jha, is quoted as
    saying delays in rail construction has been a major factor in lower than
    expected coal output. He stated, “For over a couple of years, our
    production has not grown, but our inventory at rail sidings all across
    kept piling up.” One rail project connecting the Vasundhara and
    Mand-Raigarh rails had a completion date of March 2012 (end of 11th Five
    Year Plan) but is currently not close to completion, with one connector
    track not yet started.[17]

    It was reported in July 2012 that the ministry of environment and
    forest gave conditional approval to 15 mines operated by PSU coal miner
    Coal India.[18]

  • Financing of India’s coal plants
    Financing of India’s coal rush is an under-studied topic. The Power Finance Corporation is the lead government-owned entity, and it is the “nodal agency” for the program of Ultra Mega Power Projects. International public investment institutions such as the World Bank
    have also played a significant role in financing India’s coal plants,
    and that role has been highly controversial due to the application of
    funds from the Clean Development Mechanism for new coal plants. Private equity has been a smaller factor but is growing rapidly.[11]

    Barh power station
    Bhilai Works power station
    Ib Valley power station
    Kahalgaon power station
    Krishnapatnam Ultra Mega Power Project
    Krishnapatnam power station
    Mumbai Jindal power station
    Mundra Ultra Mega Power Project
    Pathadi power station
    Simhadri power station
    Sipat power station

  • Madhya Pradesh
    Sasan Ultra Mega Power Project 6
    Reliance Power

    Devgad UMPP


    Girye Ultra Mega Power Project
    not yet determined


    Ghogarpalli Ultra Mega Power Project
    Power Finance Corporation


    Sakhigopal Ultra Mega Power Project
    Power Finance Corporation


    Sundargarh Ultra Mega Power Project (Lankahuda)


    Tamil Nadu
    Cheyyur Ultra Mega Power Project
    Coastal Tamil Nadu Power


    Tamil Nadu
    Marakkanam Super Thermal Power Project


  • Gujrat
    Tata Mundra Ultra Mega Power Project 1
    Tata Power
    Newly commissioned

    Tata Mundra Ultra Mega Power Project 2-3
    Tata Power

    Tata Mundra Ultra Mega Power Project 4-5
    Tata Power
    Advanced development

    Tilaiya Ultra Mega Power Project 1-5
    Reliance Power
    Early development

    Tilaiya Ultra Mega Power Project 6
    Reliance Power
    Early development

    Madhya Pradesh
    Sasan Ultra Mega Power Project 1-2
    Reliance Power

    Madhya Pradesh
    Sasan Ultra Mega Power Project 3
    Reliance Power

    Madhya Pradesh
    Sasan Ultra Mega Power Project 4-5
    Reliance Power

  • State
    Annual CO2 (tons)

    Andhra Pradesh
    Krishnapatnam Ultra Mega Power Project 1-2
    Reliance Power


    Andhra Pradesh
    Krishnapatnam Ultra Mega Power Project 3-6
    Reliance Power


    Andhra Pradesh
    Pudimadaka Ultra Mega Power Project
    Advanced development

    Andhra Pradesh
    Vadarevu Ultra Mega Power Project Stages II-III
    Andhra Pradesh Power Generation Corporation (APGENCO)


    Andhra Pradesh
    Varadevu Ultra Mega Power Project Stage I
    Andhra Pradesh Power Generation Corporation (APGENCO)

    Early development

    Akaltara Ultra Mega Power Project
    Akaltara Power


    Surguja Ultra Mega Power Project
    not selected


  • Ultra Mega Power Projects
    For more details, see Ultra Mega Power Projects in India.

    India has proposed a series of ‘ultra mega’ coal-fired power stations of 4,000 megawatts or more.

    The program of Ultra Mega Power Projects (UMPP) was introduced in 2005 by the Ministry of Power in association with the Central Electricity Authority and the Power Finance Corporation
    to overcome bureaucratic obstacles hindering the development of large
    thermal plants and thereby address India’s chronic power deficits.[8]
    “The government’s capacity addition programme has been grossly
    inadequate in the past. In the 9th and 10th Plans, less than 50% of the
    targeted capacity was added. In the on-going 11th Plan, while the Centre
    had originally planned to add 768,577 MW [sic – one digit too many] of
    capacity, the power ministry has now scaled down the target to 62,000
    MW,” wrote Amiti Sen & Subhash Narayan in the Economic Times.[9]
    The Ministry of Power stated that the projects would be ‘super
    critical’ coal plants which would either be located at the pithead of
    specific coal deposits or at coastal projects to be based on imported

    In an attempt to make the projects attractive for private sector
    investors, the Ministry of Power, the Central Electricity Authority and
    the Power Finance Corporation determined that it “was deemed necessary
    to provide the site, fuel linkage in captive mining blocks, water and
    obtain environment and forests clearance, substantial progress on land
    acquisition leading to possession of land, through a Shell Company.” The
    shell companies were also given the initial task for finalizing
    agreements with power purchasers.[10]

    The Ministry stated that the Central Electricity Authority (CEA) had
    selected the sites in consultation with state governments with the
    coastal sites being the Mundra, Krishnapatnam, Tadri, Girye, and Cheyyur
    projects. The mine pithead sites are the Sasan, Tilaiya, Sundergarh and
    Akaltara projects.[10]

  • Table 2: Summary statistics for proposed coal plants in India

    # of Plants
    Capacity (MW)
    Annual Tons of CO2


    Early development

    Advanced development


    Newly commissioned (since 1/1/2010)






    For a complete table of over 400 proposed coal plants in India, sortable by state, project name, sponsor, size, status, and CO2 emissions, see Proposed coal plants in India.

  • 2012: The plant boom shows signs of slowing, but hundreds of projects remain in the pipeline
    In August 2011, a study by Prayas Energy Group found approximately
    590,000 megawatts (MW) of coal projects in the pipeline, having received
    or expecting imminent environmental approval.[6][7]
    However, since the release of the Prayas study there has been a major
    slowdown among planners of new coal capacity. As shown in Table 2,
    41,650 MW of projects were deferred (i.e. progress was on hold) as of
    May 31, 2012, and an additional 22,420 MW of projects had been
    cancelled. The reasons for the slowdown were multiple: (1) Dramatic
    rises in the cost of imported coal; (2) Insufficiency in domestic coal
    output; (3) An unfolding domestic crisis over the integrity of the coal
    allocation process, known as “Coalgate,” (4) Difficulties obtaining
    financing. Nevertheless, 87,122 MW or projects were under construction
    as of May 31, 2012 and an additional 68,200 MW of projects were in
    advanced development, having achieved most milestones (permits, water,
    land, coal, and financing).

  • 2007-2012: The Rush to Build Coal Plants
    For more details, see Proposed coal plants in India and Existing coal plants in India

    2007-2011: The rush begins
    As shown in Table 1 below, India’s coal plant capacity was relatively
    stagnant through the end of the 10th Plan on March 31, 2007. Since
    then, growth has been rapid, including a 79% increase in capacity from
    March 31, 2007 through May 31, 2012 (mostly since the beginning of 2010)
    and an additional 76% increase represented by projects currently under
    construction. [4][5]

    Table 1: Coal plant capacity additions since 1985, and current capacity under construction

    Capacity (MW)
    Growth (MW)
    Growth rate


    (7 years)

    (5 years)

    (5 years)

    (5 years)

    (5 years, 2 months)

    Under construction 5/31/12


  • Introduction

    Ramagundam Thermal Power Station, Andhra Pradesh

    Coal is the main commercial energy fuel in India, amounting to 55% of installed electrical capacity in 2011[1]Ambitious
    plans by the Indian government to extend the electrification rate from
    its 2005 level of approximately 44% to the whole population, as well as
    catering for rapid growth in industrial and household consumption, are
    driving plans for a massive expansion of installed electricity capacity.

    India has “proved” coal reserves estimated by the Ministry of Coal at
    93 billion tonnes and are estimated to be sufficient for 30 to 60
    years; however Indian coal is of low quality as it has a high ash
    content.[2] In August 2010, the EIA projected that India has coal reserves of 62,300 million short tons.[3]

  • Peak (thermal) coal ?

    December 10th, 2012
    John Quiggin

    Most of the news on CO2 emissions has been bad. In particular,
    there are plenty of stories suggesting that coal-fired electricity is
    booming, and that this can be expected to continue. Although the
    evidence is mixed, I’m coming to the opposite conclusion. It’s already
    clear that no new coal-fired power stations will be constructed in the
    US for some time to come, and that many old ones will close, thanks to
    cheap gas and EPA regulations. And, while there are some new stations
    coming on-line in the EU, closures will predominate there too, although
    they still need to work out what to do with Poland.

    But the big news is from China. Not that long ago, the standard story was that China was turning on two new coal-fired power stations every week. Now as this AFR report (paywalled, but another version here) says, China is cutting back hard on coal expansion.
    I found this story from March, in which the China Electricity Council
    says that it expects coal consumption in 2015 to be below the 2011
    level, implying that the peak is very near. India is also planning some
    big expansions, but if China can grow without coal, so can they.

    All of this suggests that the peak in global use of thermal coal
    could be much closer than is generally thought. Demand for metallurgical
    coal, used to produce steel, seems much more robust at least as long as
    investment-driven growth continues apace in China and India. Looking at
    the other fossil fuels, we reached plateau oil
    at least five years ago. On the other hand, gas (less carbon-intensive
    than the others, but still a source of CO2) is booming. So, there’s
    still a lot of work to be done before we can end the growth in
    emissions, let alone start on the 80 per cent reductions we need.

  • Source: National Grid, ‘Going Green’ scenario in the

    Future Energy Scenarios 2014

    Coal and the UK’s climate legislation are basically
    incompatible, barring large-scale carbon capture and storage. The
    UK has a legally binding commitment to
    reduce emissions by 80 per cent by 2050. As the power sector
    currently accounts for
    about 30 per cent of the country’s emissions, a lot of the cuts
    will have to be made by switching to cleaner sources, like nuclear
    or renewables. EU legislation also requires the UK to
    ramp up renewables and
    phase out
    old coal power plants.

    But as the data we’ve just discussed suggests, without
    international efforts to decarbonise, it’s likely the coal that the
    UK or Europe would have used will still get burned somewhere.
    Coal’s global future ultimately depends on whether policymakers
    implement stringent climate policy.

    In summary, a range of projections suggest coal is
    not dead and is probably not going to die any time soon. For now,
    assessments of the coal industry’s health rather depend on which
    part of the world is under the microscope.

    the climate brief

    Licensed under a creative
    commons license

    Published by Climate Brief Ltd – Company No. 07222041

  • Source:
    Eurostats, Inland energy consumption by fuel: solid fuels, by
    1,000 tonnes of oil equivalent

    In the long term, the downward trend in coal use is likely to
    resume. Policies such as the
    large combustion plant directive and
    industrial emissions directive which limit air pollution are
    expected to force many coal plants to reduce the amount they
    operate, and eventually shut.

    Officials hope the EU’s
    energy efficiency policies and renewable
    energy goals will also see the region use less energy and
    switch to less polluting power sources.

    UK: A coal minnow

    The EU trends are expected to be reflected in the UK.

    A new
    report from the network operator National Grid looks at four
    ways the government could decarbonise the UK’s energy sector.
    Unsurprisingly, coal has a limited role in each of them.

    The scenarions show coal’s share of the UK’s power generation
    falling to between one and nine per cent by 2035, down from around
    40 per cent today.

    Gas could be expected to take over as the primary fossil fuel
    used to generate electricity, with perhaps as much as 47 per cent
    of our electricity coming from gas in 2035, National Grid

  • Avatar

    Credit: Doc Searle

    Coal is primarily used for power generation. Despite the
    country’s well publicised shale gas boom, coal remains the main
    fuel used for electricity generation, generating
    about 40 per cent of the US’s power in 2013, with gas producing
    about 29 per cent, according to the Energy Information
    Administration (EIA), the energy statistics department of the US

    The EIA
    doesn’t expect this to change much in the next two decades. It
    projects coal providing about 40 per cent of the US’s power in
    2035, despite the
    President’s much lauded plans to curb coal power

    Similarly, the US is likely to keep producing a lot of coal. The
    EIA expects coal production to increase gradually to 2035, with
    most of the fuel exported.

    US Energy Information Administration. Graph by Carbon

    EU: Long term squeeze

    It’s a very different picture on the other side of the Atlantic,
    where the EU’s long term commitment to
    addressing climate change should see coal increasingly squeezed
    out of the energy mix.

    The European Commission expects energy
    consumption from coal to halve by 2050, from 16 per cent to 8
    per cent. As renewables increase their
    share of electricity generation, much less coal is expected to
    be used to fuel the region’s power stations. The commission
    projects coal generation will account for 12 per cent of the EU’s
    electricity in 2030, and 7 per cent in 2050 – down from 24 per cent
    in 2010.

    Although the EU’s coal consumption has dropped significantly
    over the last two decades, there has been a slight uptick in recent
    years, as the graph below shows. That’s partly down to countries
    using cheap coal imports for power generation instead of
    less-polluting gas, in part as a consequence of the US shale
    gas boom.

  • Source: PwC,
    The Indian coal sector: Challenges and future outlook

    That means India is likely to become increasingly
    depend on imports, and is set to become the world’s largest coal
    importer by around 2020, according to the IEA.
    Australia: Relying on exports

    While some have argued that a solar power boom means the
    coal industry is no longer economically viable, the country
    remains the world’s second-largest coal exporter.

    While domestic consumption is expected to reduce in coming
    years, the Australian Bureau of Resources and Energy Economics
    (BREE), an Australian government economic research unit, still
    thinks coal has a future.

    Credit: Calistemon

    Electricity consumption from coal is expected to get squeezed in
    the coming decades as renewable energy – particularly small scale
    solar – starts to become more competitive, the BREE predicts.
    Likewise, domestic energy consumption from coal is expected to tail
    off (the dark blue bars on the chart below).

    Source: Australian Bureau of Resources and Energy
    Economics data. Graph by Carbon Brief.

    In contrast, BREE expects coal production (the light blue bars
    on the chart above) to increase up to 2035, before falling

    BREE predicts that coal production will be at a higher level in
    2050 than it was in 2013, with most of the coal likely to be
    exported to Asia’s emerging economies, as China’s demand drops.

    USA: Coal going strong despite shale gas

    The US uses the most coal of any developed economy, according to
    the IEA – with the country accounting for 45 per cent of the OECD’s
    total coal consumption.

  • Source: US
    Energy Information Administration

    Last September, the government prohibited the building of new
    coal power plants in three populated areas around Beijing,
    Shanghai, and Guangzhou
    as part of the country’s national action plan. That should help
    curb coal power generation. But the
    World Resources Institute, an environmental thinktank, says
    further national policies will be needed if the country is to make
    significant steps to reduce power sector emissions.

    Credit: ZHart

    The IEA
    expects China to continue to be a major industrial coal consumer.
    Aside from the power sector, the iron, steel and cement industries
    all rely on the fuel for heat and power. As such, coal is set to
    continue as China’s main energy source all the way up to 2035, and
    possibly beyond, according to the IEA. And China will continue to
    ramp up coal production to meet demand, the IEA says.

    India: Coal boom

    India is currently the world’s third largest coal consumer, and
    demand for the fuel is set to grow in coming decades.
    PwC, a consultancy, projects India’s coal demand will grow by
    about seven per cent each year for the next decade. The IEA expects
    India to more than double its coal consumption by 2035.

    Commercial, technical and legal difficulties – alongside a
    series of major political
    scandals – have held up the expansion of India’s mining
    industry. That means that while India produces a lot of coal, it’s
    unlikely to be able to increase production quickly enough to meet
    rocketing demand – creating an ever-largening gap between
    production and demand, as this chart shows:

  • Blog

    The future of coal in China, India, Australia, the US, EU, and UK

    16 Jul 2014, 13:00
    Mat Hope

    Have reports of coal’s demise been greatly
    exaggerated? It depends which part of the world you look
    Global coal use has grown significantly over the last decade,
    with global demand increasing 60 per cent between 1990 and 2011,
    according to research body the International Energy Agency (IEA).
    With some countries implementing climate policies to limit the use
    of polluting fuels, some commentators are predicting
    coal’s imminent demise.

    BP Statistical Review of World Energy

    That’s probably premature. While some European countries are
    ramping up renewables, shutting coal plants and closing mines,
    other parts of the world are planning an extraction frenzy to feed
    emerging economies’ seemingly insatiable energy demand.

    Here’s a quick guide to coal’s prospects around the world.

    China: Coal is dominating the market

    China is the world’s largest coal user, producer and importer.
    Motivated by air quality concers, China is making some efforts to
    reduce use of coal power, but the country still uses a huge amount
    of coal –
    4.2 billion tonnes in 2012, according to the Energy Information

    That’s about four times as much as the whole of
    Europe consumed the same year.

  • Congestion persists, but India’s improvements in coal import infrastructure center on smaller and deeper ports. Imports are up after the
    Supreme Court ruled in August that India’s longstanding method of
    allocating coal mining concessions was “illegal and arbitrary.” UMPP
    (started in 2006) focuses specifically on coal imports because the more
    efficient plants being deployed need higher quality coal to achieve full
    load. Larger plants can obtain the economies of scale to compensate for
    the higher costs associated with foreign coal. India’s domestic thermal
    coal is currently around $10 or $20 cheaper per tonne than imports, so
    a bifurcated approach using imported coal with high-efficiency global
    technologies could establish a pathway for Indian coals. Many boilers in
    India are jumbo-sized because of the elevated ash content of local
    coal, and these units can blend higher quality imports with domestic

  • Coal Imports Will Continue to Boom

    The IEA projects that India will be the world’s largest coal importer
    by 2020. India’s large reserves (5th globally at 61 million tonnes)
    should be tempered by a few factors:

    India needs more capital intensive underground mining, which has
    stagnated from an over-focus on cheaper opencast mining. Underground
    mines account for 60% of CIL’s mines, but they only account for ~10% of
    the company’s total production, versus 95% in China, 40% in the U.S.,
    and 28% in Australia.

    Technical and institutional problems have restricted the mechanized
    longwall technology used to minimize underground mining losses. India’s
    underground output requires a quantum jump from 0.50 to 2.7 tonnes per
    man year.

    The true size of India’s coal endowment isn’t known. Natural
    resources in the country are often assessed geologically, not the more
    appropriate techno-economically. Technical energy terms like “resources”
    and “reserves” have been misused in Indian appraisals.

    The quality of Indian coals is lower, especially high ash and low
    calorific values. Indian coal does have low sulfur content, but this
    leads to less boiler efficiency, meaning more coal input per output

    India’s own met coal supply has been falling, and domestic reserves
    constitute just 13% of the country’s total. Many are inaccessible
    because they sit under communities or land reserved for farming.

  • The Incredible Scale of Latent Demand for Coal-Based Electricity in India

    Source: IEA

    India’s Coal Generation Capacity Will Nearly Quadruple (2011-2035)

    Source: IEA, WEO 2013; Mining Weekly

    The Need for More Coal to Make Steel

    Met (metallurgical) coal is used to produce coke which is critical in
    steelmaking. Indian steelmakers used ~40 million tonnes of met coal
    last year, and imports could more than triple to 110 million tonnes by
    2025, while steel capacity also triples to 300 million tonnes. India’s
    needs for more met coal and steel arise from a rapid urbanization
    process that has population centers swelling by nearly 15 million people
    annually. India is still just 32% urbanized, compared to 52% in China
    and 82% in the U.S. Thus, India’s per capita steel use is still very low
    at 57 kg/year, versus 310 kg in the U.S. and 480 kg in China. Steel and
    Mines Minister Tomar wants to roll back the 2.5% customs duty on met
    coal to help the domestic steel industry. Global overcapacity has met
    coal markets at the bottom of the cycle, and the inevitable recovery is
    emerging (see here and here).
    Coal market watchers remember: 1) cities are built on electricity,
    steel, and cement (coal is the basis of all three) and 2) global cities
    are expanding by ~75 million people a year.

  • Importantly, India has watched neighbor China leverage coal power to
    lift 650 million people out of poverty since 1990, and sail past the
    global average for Human Development Index. Over that time, China’s per
    capita coal electricity use rate increased to 3,200 kWh, up from just
    420 kWh in 1990. Wanting the same, India’s coal demand structure has
    evolved from 54% power generation in 1990 to 68% today, against 85% in
    the EU and 93% in the U.S. Since 2000, India’s coal power has nearly
    doubled to 800 TWh, while real GDP/capita doubled and Health Adjusted Life Expectancy increased 5 years to 58. India’s new modern coal plants are reducing SO2, NOx, and particulates and slash CO2 emissions by nearly 40%. And
    despite staggering energy poverty, India has impressively lowered its
    carbon intensity (on a PPP level) by ~17% since 2006 (when UMPP
    started), on par with EU progress. Indeed, environmental groups MUST
    realize that even under the IEA’s highly optimistic best-case policy
    projection for renewables (450 Scenario), wind and solar together will
    be just 8% of India’s electricity in 2020 and 17% in 2035. And even
    then, 20 years from now, Indians at most are expected to consume just 20% of WHAT AMERICANS CONSUME TODAY.
    Note: refrigerators are among the biggest consumers of electricity in
    homes, generally using more than the average Indian uses in total.

  • Source: EIA; Reuters; The Sydney Morning Herald

    The Need for Coal-Based Electricity

    India is easily the most energy-deprived nation on Earth, with 1) 700 million lacking modern energy services,
    2) 310 million lacking electricity, and 3) just a 700 kWh/capita/year
    electricity use rate (80% below the global average). India’s long-term
    demand for thermal coal stems from a massive coal-fired build out (Ultra
    Mega Power Plants, UMPP) that will deploy larger (capacities > 4,000
    MW) and much more efficient (> 43% vs. 29% for subcritical)
    super/ultra-supercritical plants to reduce feed and emissions. Well more
    than half of new coal-based capacity for the 12th Five Year Plan
    (2012-2017) will deploy these advanced coal technologies. Cheaper, more
    reliable baseload coal power will help alleviate widespread electricity
    shortages that have been eroding the Indian economy by some $65 billion a
    year! Power Minister Goyal has coal playing an “essential role” in his $250 billion plan to provide “Power for All” by 2019. Per the International Energy Agency (IEA), coal is expected to rise from 43% of total energy supply today to 46% in 2020 and 51% in 2035, while maintaining its ~68% hold on electricity.

  • …and I am Sid Harth

    Thursday, December 18, 2014
    e-action on Coal Blocks’ e-auction

    Jude Clemente Jude Clemente Contributor
    I cover energy, environment, security, & human development. full bio →
    Opinions expressed by Forbes Contributors are their own.

    Energy 11/09/2014 @ 7:48PM 3,681 views
    India Will Be Using and Importing More Coal

    State-owned Coal India Limited (CIL) is the world’s largest producer (465 million tonnes/year), but underperformance has the country moving toward imports and privatization. CIL’s output/employee/year has been around 1,200 tonnes, compared to over 10,000 tonnes in Australia. Capital expenditures for domestic assets this year were less than $800 million, in contrast to China’s Shenua Group, which spends a few billion dollars a year increasing coal production. It’s no wonder that India’s coal supplies and transportation systems are struggling to keep pace with surging demand, and more foreign coal are needed to fill the gap. Prime Minister Modi’s “Make in India” campaign will bring in foreign firms to build factories, expand economic growth, and elevate India’s living standards, still among the lowest of the emerging markets. India’s real GDP/capita is just $1,700, versus $4,560 for the rest of the developing world.
    India’s Coal Imports Have Nearly Tripled Since 2008

  • I have serious problems in very vague language of this article. Today is Thursday. Stakeholders are supposed to reply, object or propose any, valid or invalid suggestion by Monday, December 22, 2014. Very short time for them to collect their wits, as certain undefined words may prolong this charade till eternity.

    So I said, so sue me.

    …and I am Sid Harth

    Source: HT