INDIA

Proved recoverable reserves (total coal, million tonnes) 84 396
Production (total coal, million tonnes, 1999) 314.4

Coal is the most abundant fossil fuel resource in India and places the country in the top rank of world coal producers. The principal deposits of hard coal are in the eastern half of the country, ranging from Andhra Pradesh, bordering the Indian Ocean, to Arunachal Pradesh in the extreme north-east: the States of Bihar, Orissa, Madhya Pradesh and West Bengal together account for about 85% of reserves. In addition to 82.4 billion tonnes of proved reserves of bituminous coal, the Geological Survey of India states that there are 89.5 billion tonnes of indicated reserves and 39.7 billion tonnes of inferred reserves. Coking coals constitute 20% of the tonnage of proved reserves.

Lignite deposits mostly occur in the southern State of Tamil Nadu. India’s geological resources of lignite are estimated to be around 30 billion tonnes, of which about 2 billion tonnes in the Neyveli area are regarded as "mineable under the presently adopted mining parameters", and taken as proved recoverable reserves in the present Survey. Annual production of lignite is currently in the region of 22 million tonnes, almost all of which is used for electricity generation.

Although India’s coal reserves cover all ranks from lignite to bituminous, they tend to have a high ash content and a low calorific value. The low quality of much of its coal prevents India from being anything but a small exporter of coal (traditionally to the neighbouring countries of Bangladesh, Nepal and Bhutan) and conversely, is responsible for sizeable imports (around 10 million tonnes/year of coking coal and 6 million tonnes/year of steam coal) from Australia, China, Indonesia and South Africa.

Within the Ministry of Mines & Minerals, the Department of Coal has the overall responsibility for determining policies and strategies in respect of exploration and development of coal and lignite reserves. Under the administrative control of the Department, key functions are exercised through the public sector undertakings, namely Coal India and its subsidiaries and the Neyveli Lignite Corporation (essentially entrusted with the task of lignite production and associated power generation), and also through the Singareni Collieries Company (a joint sector undertaking of the Government of India and the Government of Andhra Pradesh).

Coal is the most important source of energy for electricity generation in India: about three-quarters of electricity is generated by coal-fired power stations. In addition, the steel, cement, fertiliser, chemical, paper and many other medium and small-scale industries are also major coal users. In the course of phasing out steam traction the direct demand for coal for rail transport has virtually disappeared.

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