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ISSUES AND CHALLENGES OF INDIAN COAL INDUSTRY AND THEIR POSSIBLE REMEDIES

S. Bose

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.

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