Daily Hot Topic
Topic : Coal Sector in India
GS-3 Mains : Economy
Context
- India’s coal import increased by 5.7% in Q1 of FY24 due to soft seaborne prices and anticipated demand.
Coal in India
- Reserves: India is a major coal producer with reserves primarily in Jharkhand, Odisha, West Bengal, Chhattisgarh, and Madhya Pradesh.
- Production: India is the world’s second-largest coal producer. Coal India Limited (CIL) is the largest state-owned coal producer globally.
- Consumption: Coal consumption surged 10.15% in May 2024, indicating rising demand from energy and manufacturing sectors.
- Import/Export: Despite being a major producer, India imports coal due to transportation challenges and specific coal requirements.
Challenges
- Environmental Impact: Air pollution, greenhouse gas emissions, and ecological damage from mining.
- Infrastructure: Inadequate transportation infrastructure (railways, ports) leading to inefficiencies.
- Regulatory and Policy Issues: Complex regulations affecting sector’s operation and growth.
Transition to Renewable Energy
- Current Scenario: India is the world’s third-largest renewable energy producer with 40% of installed capacity from non-fossil fuels. Coal still provides 55% of India’s power supply.
- Aim: India targets 50% electricity from renewable sources by 2030.
- Challenges: Dependency on natural factors, concerns over hydropower projects, nuclear energy development, infrastructure development, and grid integration.
Government Initiatives
- National Solar Mission (NSM): Launched in 2010 with ambitious solar capacity targets.
- Green Energy Corridors: Enhancing transmission infrastructure for renewable energy integration.
- Renewable Purchase Obligation (RPO): Mandating power purchase from renewable sources.
- Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): Promoting solar pumps and power plants in agriculture.
- International Solar Alliance (ISA): Coalition for promoting solar energy in solar-resource-rich countries.
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