VDMA

INDA 2017

Best of Germany 2014 - Mining Equipment and Mining Technology

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8 INDIA 2017 Coal Mining in India allotments. It was further submitted that in the case of allottees supplying coal to the power sector, they should be mandated to enter into Power Purchase Agreements (PPAs) with the State utility or distribution company (as the case may be) so that the benefit is passed on to the consumers. Import and Export To bridge the demand-supply gap as well as sweeten indigenous production, coal is imported from other countries, especially low-ash coal. As per our import policy 1993-94, coal has been put under Open General License (OGL) and therefore importers are free to import coal based on there requirement. In 2015-2016, Import of coal by India was 203.95 mt against the import of 217.78 mt registered in 2014-2015. It is observed that the share of coking coal in the total quantity was 21.084%, whereas non coking coal was 159.39 mt which in value terms accounted for 78.15%. Indonesia with 47.81% share has remained the leading supplier followed by Australia with 23.97% and South Africa 18.09%. These three countries together accounted for 89.87% of the total import to India in 2015-2016. In the year 2015-2016, the total export was 1.575 mt. Here Bangladesh accounted for 51.68% of export followed by Nepal (35.49%) and Bhutan (4.38%). Investment Opportunities in Coal Industries Public sector undertakings have been in the total command of the coal production since 1973-1974 to present day, but with the lib- eralisation of economy since June 1991 the scenario has changed. Huge investments are required to meet the increasing 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, Government 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, and • 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 need- ed for Power Plants. • Improved hydraulic stowing techniques using river sand, crushed overburden, fly ash and other locally available materials. FDI in Mining Sector The amount of FDI in Mining was €643.33 million in 2014-2015. It increased by €631.36 million as compared to 2013-2014. The share of FDI in Mining in total FDI in India was 2.21% in 2014-2015. The amount of FDI in Mining was €52.40 million in 2016-2017. It decreased by €437.02 million as compared to 2015-2016. The share of FDI in Mining in total FDI in India was 0.13% in 2016-2017. The maximum annual growth in FDI in Mining of €643.33 million was recorded in the year 2014-2015 during the period under consid- eration. The maximum share of FDI in Mining in total FDI in India of 2.21% was recorded in the year 2014-2015 during the period under consideration. New Coal Projects in India Shree Cement is implementing a coal-based CPP project at Baloda Bazar, Raipur, Chhattisgarh. Chettinad Cement Corp plans to set up an expansion of its coal- based CPP unit in Sangem. K, Gulbarga. GPC plans to set up the Khadsaliya-I lignite mining unit at Khadsaliya, Lakhanka & Thalsar. Paras Power & Coal Benefication plans to set up a coal washery in Bilaspur, Chhattisgarh. MNH Shakti is implementing a coal mining project in dist. Sambalpur, Orissa. Conclusion 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 just 1.0% in 2012. With current 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 annu- al 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 projections 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 gov- ernment 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 cancellation 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; and • Information from SCCL & CIL website.

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