Record Decline in the Share of Imported Coal in the Last Decade

Sub: Geography

Sec: Eco geo

Coal Import Trends:

The CAGR of coal imports was significantly high at 21.48% from fiscal year 2004-05 to 2013-14.
However, it dropped to 2.49% from fiscal year 2014-15 to 2023-24.
Similarly, the CAGR of the share of imported coal stood at 13.94% during the period from fiscal year 2004-05 to 2013-14 but declined to around -2.29% in the subsequent period.

India’s Coal Reserves and Consumption:

India, with the fifth-largest coal reserves in the world, is the second-largest consumer of coal due to its rapidly growing economy.
While the country lacks sufficient coking coal and high-grade thermal coal, necessitating imports for industries like steel, it has an abundance of medium and low-grade thermal coal for domestic use.

Coal Production Trends:

Efforts to increase coal production have shown positive results over the past decade.
From fiscal year 2004-05 to 2013-14, the compound annual growth rate (CAGR) of coal production was 4.44%.
This increased to around 5.63% from fiscal year 2014-15 to 2023-24.

Gradation of coal:

Coal grade is an economic or technological classification of the relative quality of coal for a particular use.
The classification of coal is determined based on the gross calorific value (GCV) or the amount of heat or energy produced when burning coal.
Coal being a fossil fuel is a mixture of carbon, ash, moisture and a host of other impurities. The higher the available carbon in a unit of coal, the greater is its quality or ‘grade.
As per a classification by the Coal Ministry, There are 17 grades of coal, where grade 1 (top quality coal) with a kilo of it yielding higher than 7,000 kcal and the lowest producing anywhere between 2,200-2,500 kcal.

Classification of Coal:

Coal is originated from organic matter wood. When large tracts of forests are buried under sediments, wood is burnt and decomposed due to heat from below and pressure from above. The phenomenon makes coal but takes centuries to complete.
Classification of Coal can be done on the basis of carbon content and time period.
On the basis of carbon content, it can be classified into the following three types:
- Anthracite: It is the best quality of coal with the highest calorific value and carries 80 to 95% carbon content. It ignites slowly with a blue flame and is found in small quantities in Jammu and Kashmir.
- Bituminous: It has a low level of moisture content with 60 to 80% of carbon content and has a high calorific value. Jharkhand, West Bengal, Odisha, Chhattisgarh and Madhya Pradesh have deposits of Bituminous.
- Lignite carries 40 to 55% carbon content and is often brown in colour with high moisture content thus, gives smoke when burnt. Rajasthan, Lakhimpur (Assam) and Tamil Nadu have deposits of Lignite.
- Peat is the first stage of transformation from wood to coal with low calorific value and less than 40% carbon content.

Source: PIB