Will the coal sector’s envisaged growth be matched by infrastructure to reach the coal to the consumer by Railway network?
Even if Coal India produces this much coal, it cannot reach the consumer because of transport bottlenecks.
India’s dependence on coal for energy shall remain nearly 60-65 percenty in the coming few years also.
With GDP growth of 8 to 9 percent year on year, the requirement of power shall grow exponentially and so will be the requirement of coal. Even if solar power may increase substantially the coal requirement will continue to quite high.
Will the Rail infrastructure of India able to cope up the extra production of coal?
The ‘Vision Coal 2025’ had predicted 1267 mt of coal demand by FY25 at 8 percent GDP growth forecast. Even if 1000 mt is produced, the rail infrastructure will not be able to transport the coal to the powerhouses and other destinations.
Integrated energy policy
The Integrated Energy Policy (IEP) document (August, 2006) presented several alternative scenarios of energy mix to sustain a GDP growth rate of 8 percent till FY32 where the requirement of coal based energy has been projected to vary from 2555 mt for a coal dominant scenario to 1580 mt in the scenario considering utilisation of full potential of nuclear, hydro and renewable resources along with all energy conservation measures.
Coal demand and import of coal
The demand up to 2025 will be 1200 mt which is almost 2 times the present production of Coal India.
Can our rail infrastructure cope up with this huge demand for coal/ energy of this country? If we fail to produce, will we be importing coal? And do we even have the infrastructure for import like port and rail link?
This story is from the July 2020 edition of Coal Insights.
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This story is from the July 2020 edition of Coal Insights.
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