Monday, August 08, 2005

India's energy security - II

Here is the second installment of the blog India's energy security. Sorry for the delay.

India has 92 billion tons and tising coal reserves. One third of this can be easily mined. Yet our annual production at around 400 million tons is grossly inadequate to meet the needs of even existing power stations. In past decades, India used to export coal, mainly to Bangladesh and Nepal. Today, our power plants need to import over 10 million tons to utilise capacity fully. To increase the efficiency of our thermal power station by 1% we require an additional five million tons of coal.

The power minister has given a estimate that the coal shortage may rise to 50 million tons in three years time. This thou being having among the biggest coal reserves in the world. Another analogy is that, High quality imported coal can be cheaper in Tamilnadu and Gujarat than low-ash Indian coal transported from Orissa. The coal industry is nationalised and a law is passed to ban private mining except in captive mines.

If we want to really do something about our energy security we should focus on the coal reserves we have and to allow private and foreign company to do mining. Even we can throw open the coal prospecting to maximise the discovery of high quality coal.

The coal ministry favours such reforms but this has not materilised as the trade union and left front are opposing it. These attitude of ours to rather import coal then allowing healty competion by allowing private or foreign company do mining is the real treat to our enery security.

1 comment:

Anonymous said...

Opening mines to private companies I understand, but why would you ever propose opening them up for foreign companies?
please never mix up privatisation and healthy competition with opening up our country's resources to be exploited by foreign firms. India and its citizens should be mature enough to understand and solve their own problems with all the strength, intelligence, unity, technical skills that we possess. That should be highlighted and encouraged and not be said in the same breath as opening our doors to foreign companies.("we should focus on the coal reserves we have and to allow private and foreign company to do mining. ")