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Thursday, December 13, 2012

India's estimated coal reserves are expected to last over century.

India is the third-largest producer of coal in the world. However, the country's domestic consumption is large. As a result, India net imports coal to meet the needs of power companies, steel mills and cement producers. India's coal demand is expected to increase multifold within the next 5 to 10 years. This is due to the completion of ongoing power projects, and demand from metallurgical and other industries. The government has said that India's estimated proven coal reserves of 118 bn tonnes are expected to last the country for over 100 years.

This will be enough to meet the growing demand. Government-controlled Coal India Limited (CIL) dominates the domestic coal supply market with an 80% market share. Although there have been delays in raising coal production in the past, the government has said that most of the issues regarding delays in obtaining environment clearances and land acquisition issues are being taken care of.

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