4th Annual Conference on Overseas Coal: Need for Logistics Optimization
Hotel Lalit, New Delhi, 7/17/2014 11:59:18 PM

India has been one of the World's largest and fastest growing economies with recently surpassing Japan in terms of Purchasing Power Parity (PPP). In addition, coal reserves in India are one of the largest in the world and boasts of being the 3rd largest producer of coal in the world. The energy derived from coal in India is about twice that of energy derived from oil, whereas worldwide, energy derived from coal is about 30% less than energy derived from oil. The Indian coal sector is dominated by the two government-owned companies, namely Coal India Ltd and Singareni Collieries Company Ltd which contributed 81% and 10% respectively to the total country's coal production.

The predominant users of coal are the power, cement and steel sectors but unfortunately domestic mining production and logistics in a complex tangle have been so far unable to keep pace with the growing demand with the advent of UMPPs and expansion of these sectors. The XII Year Plan estimates that coal-based generation in the terminal years 2016-17 of the XII Plan could be around 975 billion units. With thermal power accounting for 66% of the installed capacity, there will be a substantial increase in the use of washed coal and imported coal at power plants, the coal requirement for the power sector works out to 682 MT (overall projected demand at 982.5 MT) in FY17. This necessitates immediate strategy to augment the coal production to the extent possible to reduce the gap and import requirement. CIL, being the major coal producer and supplier of over 40% of the commercial energy of the country has to come out with pro-active strategies for enhancing its coal production level. An increased level of domestic coal exploration is critical for meeting India's energy needs.

Importing coal becomes a challenging proposition when the quantity to be imported is large and the infrastructure is not very good. But to feed its growing energy demand and propel its GDP growth, India needs to overcome these challenges and develop risk mitigation strategies. Import and inland transportation of coal requires considerable logistical requirement & planning. Availability of proper infrastructure is also a pre-requisite.

Besides, there is also an urgent need to adopt some possible measures like rationalization of coal linkage, dedicated freight corridors to improve the situation, need to develop skill sets of mining professionals, promoting Under Ground Mining, cleaner coal technologies for sustainable development.

Coal accounts for nearly 50 per cent of Indian Railways' revenue-earning freight loading and the throughput was only 288 MT, which suggests a serious shortfall in the supply chain. Although, The Railway Board has urged major coal loading zonal railways to step up operations and revise targets, there is still a large supply-demand gap.. Absence of pit head mines and transporting domestic coal over large distances ends up in increasing the price four folds, which is not favorable to producers.>/p>

Keeping all these burning issues in mind, Infraline Energy is holding its 4th Annual Conference on Overseas Coal and Optimizing India's Transport and Logistics with the objective to provide an ideal platform for various key stakeholders, in the coal sector to deliberate on the existing gridlocks, with possible probable solutions while sharing their practical experiences and views .