Banking on coal

INDIA’s overdependence on coal for power generation was laid bare during the electricity crisis in April, when several states reported outages triggered by dwindling stocks of this fossil fuel amid the early onset of summer. Coal fulfils 55 per cent of the country’s energy needs; phasing it out and switching over to clean energy are huge challenges. With the power demand remaining high, state-owned Coal India Limited (CIL) has floated its maiden tender to import 2.4 million tonnes (MT) of coal in an effort to ensure adequate supply to power plants across the country. The move is debatable as CIL accounts for more than 80 per cent of the domestic coal output, even as the sector was thrown open to commercial mining two years ago.

Advertisement

According to the Ministry of Coal, 71.3 MT of coal was produced in India last month, marginally higher than the output (66.58 MT) in April, and way above the figure (53.25 MT) for May 2021. Coal production is going up, but it is still not keeping pace with the requirement. The below-par output indicates that mining reforms have a long way to go to make the sector industry-friendly. Earlier this week, the Chhattisgarh government halted proceedings regarding three upcoming coal mine projects in Surguja division after protests from local residents and activists. They had voiced their concerns about the displacement of the tribal population and potential damage to the ecologically sensitive region. The fiasco underlines the need to tread cautiously on the selection and allotment of mining sites so that environmental clearance does not face hurdles.

India has set itself stiff targets of sourcing 50 per cent energy requirement from renewables and installing 500 GW of non-fossil fuel electricity capacity by 2030. With coal here to stay, despite being a major source of air pollution, the push for renewable energy must be tempered by ground reality. The Commission for Air Quality Management’s order banning the use of coal for industrial and domestic applications in the NCR from next year can make a visible difference only if viable alternatives are made available to the consumers.