ENVIRONMENTAL  CONCERNS

Coal is a major contributor to air pollution and greenhouse gas emissions, leading to severe impacts on public health and climate change. The coal mining process also causes deforestation, land degradation, and displacement of local communities. To mitigate these environmental concerns, the Indian coal industry needs to adopt cleaner technologies and practices, such as investing in renewable energy sources, implementing pollution control measures, and promoting sustainable mining practices.

For instance, to tackle environmental issues,

coal companies are implementing the First Mile Connectivity (FMC) initiative as a sustainable measure, where coal is transported using conveyor belts from Coal Handling Plants to Silos for loading. This innovative process eliminates the need for coal transportation via roads, resulting in reduced environmental pollution and a decreased carbon footprint.

COMPETITION  FROM RENEWABLE  ENERGY

With the declining costs of renewable energy, there is a growing shift towards solar and wind energy, posing a threat to the demand for coal. To stay competitive, the Indian coal industry needs to diversify its portfolio and explore opportunities in renewable energy, such as investing in clean coal technologies like carbon capture and storage.

SOCIAL AND ECONOMIC IMPACTS

Coal mining often leads to the displacement of local communities, loss of livelihoods, and health hazards for workers. Robust social and environmental impact assessment mechanisms, along with effective rehabilitation and resettlement policies, are needed to mitigate these challenges. The coal industry also needs to focus on creating alternative livelihood opportunities for affected communities through skill development programs and sustainable economic activities.

DOMESTIC COAL RESERVES

India possesses the fifth-largest coal reserves in the world, providing a significant opportunity for meeting its energy demands and reducing coal imports. India is the world’s second-largest coal producer. India Targets 1.3 bn Ton Coal Production by FY25 and 1.5 BT bn Ton by 2030. The  industry can leverage these reserves by adopting advanced mining technologies, increasing efficiency, and improving productivity to meet the growing demand in various sectors, including power generation, steel, and cement. According to the recently released World Energy Outlook 2022 report by the International Energy Agency (IEA), India is projected to experience the highest surge in energy demand among all countries. This can be attributed to factors such as population growth, urbanization, and industrialization.

CLEAN COAL TECHNOLOGIES

Clean coal technologies (CCTs) can be categorized into two main types: High-Efficiency Low Emission (HELE) technologies, which enhance the efficiency of coal-fired power plants and aid in the reduction of carbon dioxide and other greenhouse gas emissions. HELE technologies typically operate during the pre-combustion and combustion stages. The other type of CCT is Carbon Capture, Use & Storage (CCUS) technologies, which are employed during both pre and post-combustion stages to capture and store carbon emissions from coal-fired power plants. Clean coal technologies like coal gasification and liquefaction can reduce emissions and make coal more sustainable. To make clean coal technologies economically viable and scalable, India can invest in research and development.

ECONOMIC DEVELOPMENT AND INVESTMENT  

The Indian coal industry can contribute to economic development by generating employment opportunities, especially in rural areas. It can support local economies by providing direct and indirect employment in mining, transportation, and ancillary industries. Additionally, the coal sector has been opened up for foreign investment, allowing for technology transfer, knowledge exchange, and joint ventures with international partners, which can further boost the growth and sustainability of the industry.