‘There was a shortage due to an extraordinary situation. The demand for power went up due to improved economic activity,’ says Union Coal Minister
‘There was a shortage due to an extraordinary situation. The demand for power went up due to improved economic activity,’ says Union Coal Minister
Twice within the latest previous the nation has confronted coal scarcity — in October 2021 and final month. Critics blame poor planning; the federal government says it was an “extraordinary situation” and motion has been taken to make sure that a scarcity by no means happens once more. To talk about this, Business Line caught up with Union Coal Minister Pralhad Joshi at Neyveli, Tamil Nadu, the place he had come to evaluate the efficiency of the general public sector firm, NLC India Ltd. Excerpts from the interview:
You have been repeatedly saying that there is no such thing as a coal scarcity within the nation. Yet Coal India Ltd is taking steps to import coal. If there is no such thing as a coal scarcity, why go in for imports? How ought to we learn the state of affairs?
Even at the moment I’m saying there is no such thing as a scarcity of coal. As of now, we’re having 11-12 days inventory of coal (required by energy vegetation), on common, as a rustic. We have about 33.60 million tonnes of coal (mendacity in varied locations). Pithead energy vegetation have about 25 days of inventory, these about 300 km (from the mines) have about 20 days inventory, these past 500 km could also be having 14-15 days inventory — like that.
In the previous couple of days, there was no depletion of shares. We are replenishing coal shares with energy vegetation on a day-to-day foundation. There was a scarcity of coal on account of a unprecedented state of affairs. The demand for energy went up on account of improved financial exercise, however on the similar time energy vegetation working on imported gasoline and coal stopped producing energy due to excessive gasoline and coal costs. Coal costs elevated from $40 a tonne to $210 a tonne. Also, energy vegetation working with blended coal (partly imported) stopped importing and started demanding home coal. Last yr, home coal manufacturing elevated by 18%. In the primary two months of the present monetary yr, manufacturing from captive mines alone elevated by 70%.
Now, coming to why we’re importing — it’s due to the upcoming wet season, when mines might be waterlogged and never be capable to produce coal. Also, rain might have an effect on transportation of coal. Keeping this in thoughts, we need to import and maintain some shares in order that the nation doesn’t endure.
Some folks have expressed fears of a ‘third round’ of scarcity. You don’t count on that to occur?
There received’t be any coal scarcity. You see, Coal India Ltd will ramp up its manufacturing to 780 million tonnes this yr. Captive mines produced 89 million tonnes final yr; this yr they count on to provide 130 m t. I’m anticipating 5 m t from industrial coal mining and one other 5 m t from deserted coal mines. All put collectively, coal manufacturing will improve by 100 m t. In distinction, the scarcity was not even 10 m t. Still we’re planning for any eventuality by imports. We will import no matter is required.
So, are you assured that coal scarcity is a factor of the previous?
I’m absolutely assured. I need to guarantee the nation that there’ll by no means be a coal scarcity once more.
You have additionally been saying repeatedly that the nation can not do with out coal. On the opposite hand, India has international commitments to cut back carbon dioxide emissions. How do you deal with this dichotomy?
We would positively want coal for a minimum of for a very long time. Without coal we can not fulfil the aspirations of the nation. The query is, the way to use coal in a fashion that doesn’t have an effect on the surroundings or contribute to international warming. We must do all that we are able to to make sure that utilization of coal doesn’t trigger any hurt. There are some ways of doing it, corresponding to coal gasification and planting bushes.
We are stepping into for coal gasification of excessive ash coal. Coal gasification is roofed by the PLI scheme (production-linked incentive scheme, which provides a monetary incentive for each unit of manufacturing that’s offered.) We are stepping into for 4 pilot vegetation for coal gasification, with imported know-how.
But coal gasification vegetation sometimes endure big delays. For instance, the Talcher undertaking —
That is why we need to invite personal gamers and in addition worldwide gamers. Even the Talcher undertaking is being expedited. Necessary steps are being taken.
There are many studies saying that coal energy is not going to be aggressive in future. Do you foresee any issues in coal mines getting finance?
There isn’t any drawback, they’re already getting finance. We have offered 47 mines —
But solely about 15 of them have began work
You see, it takes time to develop any mine. About 4-5 years. There are 21 permissions or clearances to be obtained.
But the query is, how do the financiers see the coal sector. Many worldwide funds, such because the Norwegian sovereign fund, have mentioned they might cease funding fossil fuels.
Many international locations that had earlier mentioned they might not burn coal are actually turning again to coal. There isn’t any drawback in getting funding. Only, we have now to point out that we’ll use coal with out harming the surroundings.
(The writer is the correspondent of Business Line)
Source: www.thehindu.com
