VDMA

INDIA 2016

Best of Germany 2014 - Mining Equipment and Mining Technology

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8 • E&MJ/Coal Age India 2016 Investment opportunities in Coal Industries Public sector undertakings have been in the total command of the coal production since 1973-74 to present day, but with the liberalisation of economy since June 1991 the scenario has changed. Huge investments are required to meet the increas- ing demand of coal for power and other industries and at the same time Government is looking for private player to invest. Under the present policy of free market economy, Govern- ment is removing controls on industry and trade, reducing the tariff on import and allowing private investment in companies even up to majority share holding by private / foreign sources. • Investment opportunity in Transfer of New Technology • Investment opportunity in Manufacture of Equipment / Spares • Investment opportunity in Construction of Road (Both Approach and Arterial) in Coalfields • Investment opportunity in Building Rail-lines • Investment Opportunity in Major Repair Workshops / Spares depots • Investment Opportunities in Environmental Protection • Investment Opportunities in Joint Venture for Opening New Mines • Investment Opportunities for Leasing of Equipment • Investment Opportunities in Ancillary and Infrastructure Developments • Investment Opportunities in Auxiliary Industries • Investment Opportunities in Development of Ports and for Handling Imported Coal Areas of interest for the Indian Coal Mining Companies are follows: • Powered support Longwall / Shortwall • Continuous miners in Room and Pillar system • Roof bolting systems - application of light bolting machines in Bord and Pillar development galleries • Mechanised depillaring of coal seams developed on Bord and Pillar system • Prediction of Strata behavior in extraction of developed pillars by caving method. • Design of roof support to permit mechanised depillaring. • Use of Road Haul Dumper, Continuous miner • Application of mobile powered supports (Crawler mounted) in depillaring by caving method • Road Headers - Coal Conveyor systems • Simple and cost effective men and material transport system in inclined roadways • Ventilation system in mines • Coal Handling arrangements - high speed loading equipment • Advanced geological exploration techniques to prove faults with small throw (less than 5 metres); in depth range of 20 to 300 m. • Communication system in underground mines • Application of Information Technology in mining activities • Simple method of beneficiation of coal - upgradation of coal needed for Power Plants • Improved hydraulic stowing techniques using river sand, crushed overburden, fly ash and other locally available materials FDI in Mining sector Year (April to March) FDI in Rs. Crore FDI in Euro million 2008-09 161.09 24.78 2009-10 829.92 127.68 2010-11 357.42 54.98 2011-12 436.61 67.17 2012-13 313.55 40.20 2013-14 77.08 9.88 Conclusion If mining continues to grow at historical rates, Indian mineral downstream sector will become heavily dependent on imports, susceptible to global markets movement. India's mining sector has grown at a slower rate compared to GDP, resulting in decrease in contribution of mining sector to India's GDP from 1.3% in 2002 to 1.0% in 2012. With cur- rent growth rate, India will require 160 Mt of iron ore import (10% of global seaborne), 300 Mt of thermal coal import (25% of global seaborne trade) and 70 Mt of met coal import (20% of global seaborne) in 2025. This will create uncertainty due to high dependence on imports, with possible supply shortages depending on global situation. Mining involves digging of soil and going down to hundreds (sometimes thousands) of feet deep below the ground level. The annual growth in the mining sector in India has been varying from three to eight %. Any effort to have abnormal/ unusual growth may bring environmental issues, besides causing safety hazards to men and material engaged in mines. The purpose of this factual statement is to highlight that there is a limit to expect growth in the mining sector. The pro- jections being worked to bring the country's coal production level to 1,000 MT by 2018/19 mean a required annual growth rate of 18 % has to be achieved. Lot is to be done to achieve this very high rate. Going by the country's projection for the growth rate of 8 % in GDP, it would be a good achievement if the coal sector grows annually by 12 % in a consistent manner. This can be done by opening many large coal projects and make them operational in a shortest possible time. The aim should be to make the country self sufficient in coal. Opening the coal sector fully for commercial mining, to private investors to compete with CIL, is the key and answer for the country to accomplish self sufficiency in coal. The apex court's decision should act as an opportunity for the government to have a full review of the coal sector policy and come up with appropriate coal reforms. Therefore, it is now the time to think, address and find the right way forward to resolve the challenges that have emerged from the cancel- lation of allotment of coal blocks. Bibliography • Coal Directory of India • Government of India-Ministry of Coal Annual Report • Report on Overview of Coal Mining sector in India—VDMA • Information from SCCL & CIL website Indian Coal Industry

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