Rains may cool surge in coal shipments to India

Coal shipments to India rose 10% year-on-year between January and August 2024, outpacing the 8% year-on-year increase in domestic coal mining.

How Coal requirements are impacted by Rain?

• Most of the Coal Import  was thermal coal shipments, driven by strong demand for electricity and the coal import mandates.
• Coal demand and shipments to India are expected to reduce with an increase in hydropower generation as the monsoon rains.
  • Monsoon this year has picked up in August despite a slow start.
  • It has pushed up reservoir levels by 26% year-on-year.

About Coal and its Imports

• Reserve: India has a total coal reserve of 344.02 billion tonnes and is the second largest producer of coal in the world. 
• India is the second largest coal importer globally
• Power generation from coal: Rose 13% year-on-year, compensating for the 6% decrease in hydropower generation due to low water levels.
  • 72% of the electricity in India is generated from coal
• Indonesia is source for 45 % of India’s seaborne coal imports (Mostly thermal coal)
• Top 5 States in terms of total coal reserves in India are: 
  • Jharkhand > Odisha > Chhattisgarh > West Bengal > Madhya Pradesh.
• Categorization of Resources → Coal resources of India are available in older Gondwana Formations of peninsular India and younger tertiary formations of north-eastern region.

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Classification of Coal

• Anthracite: Best quality of coal with highest calorific value and carries 80 to 95% carbon content. 
  • It ignites slowly with a blue flame and is found in small quantities in Jammu and Kashmir.
• Bituminous: Low level of moisture content with 60 to 80% of carbon content and has a high calorific value. 
  • Jharkhand, West Bengal, Odisha, Chhattisgarh and Madhya Pradesh have deposits 
• Lignite: Carries 40 to 55% carbon content and is often brown in colour with high moisture content.
  • Gives smoke when burnt. 
  • Rajasthan, Lakhimpur (Assam) and Tamil Nadu has deposits 
• Peat: First stage of transformation from wood to coal with low calorific value and less than 40% carbon content.

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