Context:
India has introduced a transformative initiative, the “Coal Logistics Plan and Policy,” signaling a significant step forward in the modernization of coal transportation.
Relevance:
GS I: Geography
Dimensions of the Article:
Coal Logistics Plan and Policy in India
Coal Logistics Plan and Policy in India:
- Coal logistics has been a persistent challenge in India, especially during high-demand periods, prompting the development of the Coal Logistics Plan and Policy.
Key Points:
- Seasonal Coal Shortages:
- Persistent coal shortages during summer months, when electricity demand peaks, have highlighted the need for improved coal logistics.
- Challenges in Transportation:
- Frequent challenges in coal transportation have necessitated special measures by railways to prevent disruptions in coal supply.
- Objective of the Plan:
- The Coal Logistics Plan and Policy aim to enhance the affordability, efficiency, and environmental friendliness of coal logistics.
- Scope:
- Encompassing storage, loading, unloading, and delivery, the plan targets various industries such as power plants, steel mills, cement factories, and washeries.
- Strategic Shift to Railway-based System:
- Proposes a strategic shift towards a railway-based system, particularly in First Mile Connectivity (FMC) projects.
- Cost Reduction Goals:
- Aims for a 14% reduction in rail logistic costs, with an anticipated annual cost-saving of Rs 21,000 Crore.
Expected Outcomes:
- Environmental Benefits:
- Anticipated reduction in air pollution, alleviation of traffic congestion, and a decrease in carbon emissions by approximately 100,000 tonnes per annum.
- Efficiency Improvements:
- Forecasts a 10% reduction in the average turnaround time of wagons nationwide, contributing to overall logistics efficiency.
Status of the Coal Sector in India:
- Coal, a naturally occurring combustible sedimentary rock, holds significant importance in India’s energy landscape.
Geographic Distribution:
- India’s coal reserves are concentrated in the eastern and central regions, with major coal-producing states being Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh.
Types of Coal and Clusters:
Anthracite:
- Carbon content: 80% to 95%
- Limited quantities, primarily found in Jammu and Kashmir.
Bituminous Coal:
- Carbon content: 60% to 80%
- Predominantly found in Jharkhand, West Bengal, Odisha, Chhattisgarh, and Madhya Pradesh.
Lignite:
- Carbon content: 40% to 55%
- High moisture levels
- Found in Tamil Nadu, Puducherry, Gujarat, Rajasthan, and Jammu & Kashmir.
Peat:
- Carbon content below 40%
- Represents the earliest stage of the transformation from organic matter into coal.
Coal Imports in India:
- Import Policy:
- The current import policy allows unrestricted coal imports under an Open General License.
- Consumer Categories:
- Steel, power, and cement sectors, along with coal traders, can import coal based on their commercial requirements.
- Coking Coal in Steel Sector:
- The steel sector primarily imports coking coal to supplement domestic availability and improve quality.
- Non-Coking Coal Imports:
- Other sectors like power and cement, as well as coal traders, import non-coking coal to meet their respective needs.
Challenges Related to Coal for India:
Environmental Impact:
- Pollution and Greenhouse Gas Emissions:
- Coal mining and combustion contribute to air and water pollution, greenhouse gas emissions, deforestation, and habitat destruction, necessitating the management of environmental impacts.
- Addressing Environmental Impacts:
- Balancing the need for energy security with addressing environmental impacts remains a significant challenge.
Health Risks:
- Community Health Hazards:
- Exposure to coal dust, particulate matter, and emissions from coal-fired power plants poses health risks to communities, leading to respiratory diseases and other health issues.
Social Challenges:
- Land Acquisition and Displacement:
- Acquiring land for coal mining often displaces communities, disrupting livelihoods and posing challenges for proper rehabilitation and resettlement.
- Socio-economic Hardships:
- Rehabilitation and resettlement efforts encounter challenges, with affected populations facing social and economic hardships.
Technology Adoption:
- Limited Adoption of Clean Coal Technologies:
- Despite advancements in technologies like carbon capture and storage (CCS), their widespread adoption in India is limited due to high costs and technical challenges.
Transition to Renewable Energy:
- Balancing Energy Security and Renewable Transition:
- India’s commitment to transitioning to renewable energy sources and reducing greenhouse gas emissions presents challenges for the coal sector.
Finding a Balance:
- Striking a balance between ensuring energy security and meeting climate change mitigation objectives remains a significant hurdle.
International Advocacy:
COP28 Position:
- India advocated for a “phase down” of coal power at COP28, signaling a nuanced approach rather than an immediate “phase out,” highlighting the complexities in managing the coal sector amidst global environmental goals.
Significance of Coal for India:
- Energy Source:
- Accounts for 55% of the country’s energy needs, making it the most important and abundant fossil fuel.
- Power Generation:
- 70% of India’s power demand is met by thermal power plants, mostly powered by coal.
- Energy Consumption Trends:
- Over the past four decades, commercial primary energy consumption in India has increased by approximately 700%.
- Per Capita Consumption:
- Current per capita consumption is around 350 kilograms of oil equivalent per year, still lower than developed countries.
-Source: The Hindu
