Font size:
Print
Grades of Coal.
Context:
A report by the Organised Crime and Corruption Reporting Project (OCCRP),has alleged that a private group imported low-grade coal and sold it as high-grade coal to a few power generation companies.
More on News:
- The report alleged that in 2014, the Adani Group claimed ‘low grade’ coal, imported from Indonesia, to be ‘high-quality’ coal.
Inflated its value and sold it to Tamil Nadu’s power generation company, TANGEDCO (Tamil Nadu Generation and Distribution Company).
High Grade vs Low-Grade Coal:
- High and low quality coal are relative terms meaningful in the context of their use and processing.
- Coal is a mixture of carbon, ash, moisture, and other impurities.
- Higher carbon content in a unit of coal indicates a higher quality or ‘grade’ of coal.
- Gross Calorific Value (GCV): The amount of heat or energy generated from burning the coal determines its grade. There are 17 grades of coal based on GCV.
- Grade 1: Top quality coal with a GCV higher than 7,000 kcal per kilogram.
Lowest Grade: Coal with a GCV between 2,200-2,500 kcal per kilogram, as classified by the Coal Ministry.
What is Coal?
- Coal is a readily combustible, black or brownish-black sedimentary rock, predominantly made of carbon. It is formed over millions of years through geological pressure applied on plant remains buried under the soil.
Coal in India:
- Coal is the most important and abundant fossil fuel in India. It accounts for 55% of the country’s energy needs.
- India has a total coal reserve of 344.02 billion tonnes and is the second largest producer of coal in the world.
- 72% of the electricity in India is generated from coal.
-
- Coal import share reduced from 22.48% to 21% between April 2023 and January 2024.
- The major coal producing States in the country are Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, Telangana, Maharashtra & West Bengal.
- The heat value of coal reserves in our country (measured in Gross Calorific Value (GCV)), is lower than that of international coal reserves.
- Coking Coal: Needed to produce coke, an essential component for steel making, and requires minimal ash content.
Non-Coking Coal: Despite higher ash content, it can generate enough heat to be useful in thermal power plants.
Types of Coal:
- Anthracite: Highest rank of coal, hard, brittle, black lustrous coal.
- Characteristics: High fixed carbon(86%–97%), low volatile matter.
- Heating Value: Highest among all coal ranks.
- In India it is found in smaller quantities in regions of Jammu and Kashmir.
- Usage: Mainly by the metals industry.
- Bituminous: Middle rank coal between sub Bituminous and anthracite.
- Characteristics: High heating value, blocky appearance with shiny and dull layers, 45%–86% carbon content.
- In India it is found in Jharkhand, Odisha, West Bengal, Chhattisgarh, and Madhya Pradesh.
- Lignite: Lowest grade coal with least concentration of carbon.
- Characteristics: Low heating value, high moisture content, 25%–35% Carbon Content.
- In India it is found in the regions of Rajasthan, Tamil Nadu, and Jammu & Kashmir, 90% concentrated in Tamil Nadu.
- Peat : The precursor to coal,
-
- It is a soft, organic material consisting of partly decayed plant and mineral matter.
Under high pressure and heat, peat undergoes coalification to become coal.
Characteristics of Indian Coal:
- High Ash Content: Indian coal is known for its high ash content, typically exceeding 40% on average.
- Low Calorific Value: The Gross Calorific Value (GCV) of domestic thermal coal in India ranges from 3,500 to 4,000 kcal/kg. In contrast, imported thermal coals have a GCV of over 6,000 kcal/kg.
- Increased Pollution: Burning high-ash coal results in higher emissions of particulate matter, nitrogen, and sulphur dioxide, contributing to environmental pollution.
|
Clean Coal: Coal with increased carbon content achieved by reducing ash content, typically through coal washing or gasification.
|
Issues related to coal mining in India:
- Delayed Environment and Forest Clearances: prohibitions on mining in certain regions needs Clearances from both State and Central Governments.
- Land acquisition difficulties impede coal sector growth.
- Insufficient technological advancements pose challenges in coal extraction and processing.
- Heavily relies on manual labour and outdated techniques.
- Coal India Limited’s long-standing monopoly in commercial coal mining leads to monopolistic behaviours and an inability to meet domestic demands.
- Many coal power plants rely on extensive debt financing from state-owned banks, adding to financial challenges in the sector.
- Coal imports make up 25% of domestic needs due to a demand-supply mismatch.
- Strict regulations incur higher operation and maintenance costs for coal plants.
- India’s power regulators often fail to adjust prices to cover increased operational costs due to regulation.
Government Actions to Enhance Coal Production and Supply:
- Commercial Auction of Coal on Revenue Share Mechanism
- Allow Sale of Excess Coal Production:. Aims to increase coal market supply by utilising mining capacities more efficiently.
- Rolling Auction: Mechanism to expedite auction processes and conduct multiple rounds yearly.
-
-
- Includes mines with no or single bids from previous tranches and newly identified mines.
-
- Single Window Clearance:Unified platform for grant of clearances and approvals.
-
- Streamlines application and approval processes for starting a coal mine.
Government allowed 100% FDI under automatic route for sale of coal, coal mining activities.
