Minerals and Energy Resources of India: Distribution, Government Measures & Challenge |
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Mineral Resources in India: Geological Diversity and Economic Significance
- India is endowed with a rich variety of mineral resources due to its varied geological structure. Bulk of the valuable minerals are products of pre-Palaeozoic age.
- They are mainly associated with metamorphic and igneous rocks of peninsular India.
- The vast alluvial plain tract of north India is devoid of minerals of economic use.
- The mineral resources provide the country with the necessary base for industrial development.
- Minerals have certain characteristics. These are unevenly distributed over space. There is an inverse relationship in quality and quantity of minerals. Good quality minerals are less in quantity as compared to low quality minerals. The third main characteristic is that all minerals are exhaustible over time. These take long to develop geologically and they cannot be replenished immediately at the time of need. Thus, they have to be conserved and not misused as they do not have the second crop.
Types of Mineral Resources in India
A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties.
- Minerals
- Metallic minerals
- Ferrous
- Non-Ferrous
- Non – metallic minerals
- Fuel Minerals
- Other Non- Metallic Minerals
- On the basis of chemical and physical properties, minerals are grouped as −
- Metallic minerals
- Non-metallic minerals.
- Major examples of metallic minerals are iron ore, copper, gold, etc.
- Metallic minerals are further subdivided as ferrous and non-ferrous metallic
- The minerals containing iron are known as ferrous and without iron are known as non-ferrous (copper, bauxite, etc.)
- Non-metallic minerals are either organic in origin such as fossil fuels also known as mineral fuels which are derived from the buried animal and plant life such as coal and petroleum. Other type of non-metallic minerals are inorganic in origin such as mica, limestone and graphite, etc
Occurrence of Mineral Resources in India
- Minerals are not evenly distributed over the earth’s surface. They are concentrated in particular areas or rock formations.
- Metallic minerals, such as copper, tin, lead etc. may occur in almost pure form in veins – a fissure in rock strata containing a thin deposit of crystalline rock formed by extremely hot magma rising up – and lodes (very thick veins).
- Other metallic minerals are obtained from ores, in which several metals are associated like silver and mercury, lead and zinc etc.
- Some minerals occur in beds or layers which have formed due to deposition, accumulation and concentration in horizontal strata in earth’s crust. Examples include coal, iron ore etc.
- Minerals like gypsum, potash salts and common salt are formed by evaporation of lakes in desert areas.
- Minerals like gold, tin and platinum are highly resistant to weathering and may get reduced to small particles carried off by running water. These are known as alluvial deposits. Gold, platinum, chromite, diamonds and zircon are recovered from alluvial deposits by placer mining methods.
- In some places like the Urals of Russia, Canadian shield, Katanga plateau in Zaire, Chota Nagpur plateau in India, a variety of minerals are found in great abundance.
- But the Amazon basin, the Netherlands, Denmark and some of the Central American countries are poor in minerals.
- Some minerals are found in restricted areas of the world. These minerals include tin, vanadium, nickel, cobalt, gold and asbestos etc.
Mineral Riches Across India’s Physiographic Regions: Shield, Rift Valley, and Marine Transgression
- Shield Regions
- Chotanagpur plateau
- Dharwad region
| Description | Shield Region | Metallic Minerals |
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- Rift valley- Gondwana time
- Damodar valley
- Mahanadi valley
| Description | Rift valley Region | Coal Reserves |
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- Marine Transgression
- Gulf of Khambhat
- Gulf of Kutchh
| Description | Marine transgression | Petroleum Reserves |
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Mineral Distribution in India: Unevenness and Exhaustibility Characteristics
- Minerals are unevenly distributed on the earth’s surface.
- All minerals are exhaustible in nature, i.e., will exhaust after a certain time.
- However, these minerals take a long time to form, but they cannot be replenished immediately at the time of need.
- More than 97% of coal reserves occur in the valleys of Damodar, Sone, Mahanadi, and Godavari rivers.
- Petroleum Reserves in India are located in the sedimentary basins of Assam, Gujarat, and Mumbai High (i.e. off-shore region in the Arabian Sea – shown in the map given below). Some new petroleum reserves are also found in the Krishna-Godavari and Kaveri basins.
Mineral-Rich Regions in India: A Geographical Overview
- Northern belt
- Central belt
- Southern region
- SW region
- NW region
Northern Belt:
- Chota Nagpur plateau
- Kynite (100%), Iron (90%), Chromium (90%), Mica (75%), coal (70%) Manganese, copper, limestone
- Assam Petroleum Reserve
- Lignite coal
Central Belt:
- Chhattisgarh region – Iron in Extension of Chhota Nagpur plateau, limestone in Chhattisgarh
- Godavari- Wardha valley – coal field
South- East region:
- East Karnataka: Bellary-hospet region- iron
- Andhra Pradesh: Cuddapah, Kurnool
- Nellore (Andhra Pradesh) – mica, Manganese, lignite coal
- Telangana: Bauxite
- Tamil Nadu: Neyveli – lignite coal
South- West region:
- Karnataka: Dharwad, Shimoga, chitradurg, Tumkur, Chikmaglur: Iron, Manganese, limestone
- Goa: iron ores
- Maharashtra: Ratnagiri – iron
North West region:
- Gujarat and Rajasthan
- Petroleum
- Salt from kutchh and pyala lake of Rajasthan
- Lake Sambhar, Lake Didwana in Rajasthan – Gypsum, Borax
Major Minerals And Their Global Distribution
Iron Ore:
- Based on the amount of ore and iron content, iron ore is classified into various types:
1. MAGNETITE ((FE3O4):
- It is a good quality ore and has very high iron content (about 70%).
- Black in colour and has magnetic properties.
2. HAEMATITE (FE2O3):
- Reddish ore with 60-70% iron.
3. LIMONITE:
- Yellowish ore with 40% to 60% iron.
4. SIDERITE
- Ore with less than 40% iron.
- It contains many impurities and hence mining, in many places, is economically unviable.
- India’s iron ore mostly – Hematite
- India –2nd largest producer of hematite after Russia
- Magnetite – Russia largest producer
- China – Hematite, Limonite
Global and Indian Distribution of Iron Ore: Key Producers and Domestic Mining Regions
- In Africa, Liberia, South Africa and Algeria are important producers.
- In China, there are large iron ore reserves in the Shenyang region of Manchuria, Wuhan and Tai-ye in Chang Jiang valley, Hainan island etc. important centres.
- Australia is an important producer and exporter of iron ore. Its reserves are found in Western Australia.
- In South America, Brazil has the largest reserves.
- In North America, USA and Canada are important producers where the Great Lakes area has abundant reserves.
- In Russia, the Kerch peninsula and the Kursk region, Ural Mountains have important iron ore mines.
- In Europe, Sweden and France have major reserves. The Rhine valley in Germany, Lorraine, Normandy and the Pyrenees of France are important centres.
| State | Mineral rich regions / mines – Iron Ore |
| Jharkhand | Hazaribagh (Lohardaga), Singhbhum [Noamundi, Kariburi, Mahaburi, Gua], Daltongunj |
| Odisha | Bonai, Sukinda, Badampahar, Gorumahisani |
| KN | Shimoga, Chitradurga, Chikmagalur, Tumkur, Kemmangundi and Kudremukh mines |
| Chhattisgarh | Dalli rajhara (to Bhilai steel plant), Bailadila (to Vishakhapatnam steel industries) |
| MH | Ratnagiri |
| AP | Kurnool, Anantapur |
Manganese: Sources, Properties, and Global Distribution
- Manganese is most commonly derived from ferrous ores which also contain a significant amount of iron.
- It is a hard and brittle metal that is added to steel to increase its strength.
- Iron & Steel Industry is the major consumer of manganese ore wherein manganese ore is
- Used directly as a blast furnace feed.
- South Africa, Ukraine and Australia have the largest reserves.
- Abundant deposits are found in Ukraine, Caucasus mountains, Urals and the Republic of Georgia.
- China is also a leading producer along with India.
- Other major producers are Australia, Ghana, Gabon, Morocco, South Africa etc.
| State | Mineral rich region – Manganese |
| Jharkhand | All the iron region: Biggest mine – Chaibasa |
| Madhya Pradesh | Balaghat |
State wise reserves of Manganese:
- Odisha (44%),
- Karnataka (22%),
- Madhya Pradesh (13%),
- Maharashtra (8%),
- Andhra Pradesh (4%)
- Jharkhand and Goa (3% each),
- Rajasthan, Gujarat and West Bengal (remaining 3 per cent).
Copper: A Vital Non-Ferrous Metal in Global Demand
- Copper is a non-ferrous metal which is in high demand by the industry worldwide.
- It is found in metamorphic and igneous rocks in forms sulfides and oxides.
DISTRIBUTION OF COPPER
- Chile and Peru have more than one third of the world’s copper reserves.
- The copper mining areas in North America extend along the Western Cordilleras in Mexico, USA and Canada.
- In Europe, Russia and Poland have resources. Armenia, Georgia, Uzbekistan and Kazakhstan also have significant resources.
| State | Mineral rich regions – Copper |
| Jharkhand | Raka mines, Mosabani mines |
| Andhra Pradesh | Kurnool, Guntur, Nellore |
| Himachal Pradesh | Kangra valley, Kullu valley |
| West Bengal | Jalpaiguri, Darjeeling |
Bauxite: The Essential Ore for Aluminium Production
- Bauxite is the ore of aluminium, which makes up 8 percent of the earth’s crust.
- World’s greatest bauxite producers and exporters are in tropical and subtropical lands but aluminium is manufactured in developed countries.
- Bauxite occurs near the surface and is generally mined by highly mechanized open cast methods.
| State | Mineral rich regions |
| Jharkhand | Garhjat hills |
| Odisha | Panchampatmali hills, Niyam giri, Gandhmardhan hills |
| Madhya Pradesh | Balaghat, Amarkantak |
| Maharashtra | Ratnagiri |
| Gujrat | Khed, Amreli |
DISTRIBUTION OF BAUXITE
- Australia, Guinea, Jamaica and Brazil have major reserves.
- The USA has bauxite reserves in Arkansas, Alabama and Georgia.
- Russian deposits are located in Urals
Mica: A Versatile Non-Metallic Mineral with Global Significance
- Mica is a naturally occurring non-metallic mineral that is based on a collection of silicates.
- Mica can be easily and accurately split into very thin sheets or films of any specified thickness.
- It has a unique combination of elasticity, toughness, flexibility and transparency.
- Mica is a very good insulator that has a wide range of applications in the electrical and electronics industry.
- India has enjoyed the monopoly in the production and export of sheet mica in the world.
- USA, Ukraine, Russia, Brazil, Tanzania are other major producers.
| State | Mineral rich regions |
| Odisha | Kodarma (largest in the world) |
| Andhra Pradesh | Nellore |
| Bihar | Munger |
| Karnataka | Alleppey |
Limestone: Composition, Industrial Applications, and Regional Distribution in India
- Limestone rocks are composed of either calcium carbonate, the double carbonate of calcium and magnesium, or mixture of both.
- Limestone also contains small quantities of silica, alumina, iron oxides, phosphorus and sulphur.
- Limestone deposits are of sedimentary origin and exist in all the geological sequences from Pre-Cambrian to Recent except in Gondwana.
- 75 percent Limestone is used in the cement industry, 16 per cent in the iron and steel industry [It acts as flux] and 4 per cent in the chemical industries.
- Rest of the limestone is used in paper, sugar, fertilizers, etc.
- Almost all the states of India produce some quantity of limestone.
- Over three-fourths of the total limestone of India is produced by Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat, Chhattisgarh and Tamil Nadu.
- Madhya Pradesh is the largest producer of limestone [16 per cent].
- Large deposits occur in the districts of Jabalpur, Satna, Betul, etc.
Gypsum: Composition, Applications, and Leading Producers in India
- Gypsum is a hydrated sulphate of calcium.
- It is a white opaque or transparent
- It occurs in sedimentary formations such as limestones, sandstones and shales.
- It is mainly used in making ammonia sulphate fertilizer and in the cement industry.
- It makes upto 4-5 percent of cement.
- It is also used in making plaster of Paris, moulds in the ceramic industry, tiles, plastics, etc.
- It is applied as surface plaster in agriculture for conserving moisture in the soil and for aiding nitrogen absorption.
- Rajasthan is by far the largest producer of gypsum in India [99 percent of the total production of India].
- The main deposits occur in the Tertiary clays and shales of Jodhpur, Nagaur and Bikaner. Jaisalmer, Barmer, Chum, Pali and Ganganagar also have some gypsum bearing rocks.
- The remaining gypsum is produced by Tamil Nadu [Tiruchirapalli district], Jammu and Kashmir, Gujarat and Uttar Pradesh in order of production.
Chromite: Vital Ore for Chromium and Its Dominance in Odisha, India
- Chromite is an oxide of iron and chromium = Combination of chromium, iron and oxygen.
- It is the only economic ore of chromium.
- The chromium extracted from chromite is used in chrome plating and alloying for production of corrosion resistant super alloys, nichrome, and stainless steel.
- Used in many other metallurgical, refractories and chemical industries.
- Reserves of chromite in India is estimated at 203 MT.
- 93 per cent of the resources are in Odisha [Sukinda valley in Cuttack and Jajapur]
- Odisha is the sole producer [99 percent] of chromite ore. Over 85 per cent of the ore is of high grade [Keonjhar, Cuttack and Dhenkanal].
- Minor deposits are spread over Manipur, Nagaland, Karnataka, Jharkhand, Maharashtra, TN & AP.
| State | Mineral rich regions |
| Maharashtra | Ratnagiri |
| Karnataka | Shimoga |
| Odisha | Sukinda Largest reserve |
Lead and Zinc: Characteristics, Occurrence, and Global Production Centers
- Lead is a corrosion resistant heavy metal with a low melting point.
- Zinc is a silvery blue-grey metal with a relatively low melting and boiling point.
- Both lead & zinc are found to occur together in galena, pyrites and other sulphide ores along with other metals like silver and cadmium.
- Galena is found in veins in limestones, calcareous slates and sandstones and occasionally in metamorphic rocks.
- Major producers are the USA, Russia, Australia, Canada, Peru, Spain and Mexico.
Distribution of Lead and Zinc ores – India and World
- Rajasthan is endowed with the largest resources of lead-zinc ore (61 per cent),
- Andhra Pradesh (3.31 per cent),
- Madhya Pradesh (2.16 per cent),
- Bihar (1.67 per cent)
- Maharashtra 9 (1.35 per cent).
- Almost the entire production comes from Rajasthan.
Gold: A Precious Metal with Diverse Applications and Noteworthy Global Reserves
- It is a precious metal and till very recently constituted the international standard of exchange.
- It is used in ornamentation, dentistry, pharmaceuticals, electronics industry and chemical industry.
- Important reserves are located in South Africa, Canada, USA, Zimbabwe and Ghana.
- Gold is also known as an international currency.
- Kolar Gold Field, Hutti Gold Field and Ramgiri Gold Field are the most important gold fields.
Diamonds: Formation, Applications, and Noteworthy Global Deposits
- Diamond is the hardest naturally occurring substance found on Earth.
- Diamonds are formed in the mantle. They brought to the earth’s crust due to volcanism. Most of the diamonds occur in dykes, sill etc. [Volcanic Landforms].
- Diamonds are used in ornaments, polishing the surfaces of metals and in gem cutting.
- The most important industrial use of diamonds is in cutting-edges of drills used for exploration and mining of minerals [Diamond is the hardest substance and it can break other substances without itself getting broken].
- The Vindhayan system has diamond bearing regions from which Panna and Golconda diamonds have been mined.
- Panna belt in Madhya Pradesh;
- Wajrakarur Kimberlite pipe in Anantapur district and
- Gravels of the Krishna river basin in Andhra Pradesh.
- Reserves have been estimated only in Panna belt and Krishna Gravels in Andhra Pradesh.
- The new kimberlite fields were discovered recently in Raichur-Gulbarga districts of Karnataka.
- Reserves of diamonds in India are not yet exhausted and modern methods are being applied for intensive prospecting and mining.
- Cutting and polishing of diamonds is done by modem techniques at important centres like Surat, Navasari, Ahmedabad, Palampur etc.
- Russia holds what is believed to be the world’s largest and richest diamond resources.
- Botswana is the leading diamond- producing country in terms of value, and the second largest in terms of volume. The two important ones are Orapa and Jwaneng, two of the most prolific diamond mines in the world.
Mineral Mining: Catalyst for Economic Growth and Industrial Development in India
Role of Mining Mineral in Indian Economy:
- The Indian economy is expected to grow by approximately 7% in the years to come. Sectors like infrastructure and automobiles will receive a renewed thrust that would further generate demand for power and steel in the country. The mining sector provides raw materials to these fast-growing sectors.
- The total value of mineral production (excluding atomic & fuel minerals) during 2017-18 has been estimated at $16.6 bn, which shows an increase of about 13% over that of the previous year.
- The mining sector’s contribution to the GDP is 2.3-2.5 % at present. Mineral production in India grew at a compound annual growth rate (CAGR) of 5.72% between 2013-14 and 2017-18.
- It can cut down the import costs as the country is the 3rd largest steel producer, with a production of 101.4 million tonnes of crude steel in
- India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves at around 2,908.85 million tonnes in FY17.
- It is a labour-intensive sector and provides employment for both unskilled labour and skilled labour. Being a part of the primary sector, it largely provides unskilled jobs.
- The Development of the mining-based industry also gives a boost to the associated industries and leads to the overall development of the region.
The Legislative Framework of Mineral Mining Sector in India
- The entry at serial No. 23 of List II (State List) to the Constitution of India mandates the state government to own the minerals located within their boundaries,
- The entry at serial No. 54 of List I (Central List) mandates the central government to own the minerals within the Exclusive Economic Zone of India (EEZ). In pursuance to this Mines & Minerals (Development and Regulation) (MMDR) Act of 1957 was framed.
- International Seabed Authority (ISA) regulates mineral exploration and extraction. It is guided by the UN treaty and India being a party to the treaty has received an exclusive right to explore polymetallic nodules over 75000 sq. km in Central Indian Ocean Basin.
- The MMDR Amendment Act of 2015 introduces Mineral Concessions Grant through auctions to bring transparency and remove discretion; The District Mineral Foundation (DMF) to address the pending grievance of the people affected by mining; and the National Mineral Exploration Trust (NMET) for incentivising regional and detailed exploration to fill the gaps in exploration in the country, and stringent measures to check illegal mining.
Challenges/Concerns Faced by Mineral Mining Sector in India
- Displacement and rehabilitation issues:
- Large scale displacement of local people leads to grievances and improper rehabilitation measures, thereby, leading to people’s alienation and developing distrust over the government machinery.
- It’s not just a loss of land for the local population, but rather the loss of a tribal way of life and their rich cultural heritage.
- It has given space to left-wing extremism in resource-rich areas like Chhattisgarh, Jharkhand, Odisha, etc.
- Mining also puts the lives of miners at risk due to the rudimentary ways adopted and the absence of adequate safety gear and protocols. For instance, mine-related accidents at Ksan coal mine in Meghalaya- Jaintia Hills (2018), Chasnala near Dhanbad in 1975.
- Human Rights violations have taken place in forms of mine-related deaths, inadequate rehabilitation, and developmental steps, etc. Massive local protests have taken place against mining in Niyamgiri Hills of Odisha, POSCO in Odisha, Sterlite protest in Tamil Nadu.
Rat Hole Mining in Meghalaya: Unregulated Practices and Environmental Concerns
- This is a form of illegal mining, especially practised in North eastern areas like Meghalaya (Ksan coal mine incident). It involves digging of very small tunnels [only 3-4 feet high], done both vertically and horizontally.
- The coal seam is extremely thin in Meghalaya, no other methods would not be economically viable. In Meghalaya, this is the locally developed technique and the most commonly used one.
Environmental and Health Concerns Associated with Mining Activities
- Environmental pollution has been caused by the Makrana marble mines in Rajasthan, the Granite mines of Karnataka have left a large hole on earth, Damodar river has been severely polluted by coal mining.
- Loss of biodiversity and local heritage due to mining activities.
- The prevalence of mining in an area causes various diseases like fibrosis, Pneumoconiosis, and silicosis in workers as well as locals.
- Water Pollution – water from streams and rivers in mining areas have become acidic and unfit for drinking. Eg: Meghalaya’s Kopili river, Damodar river etc.
- Contaminated air with high particulate matters is also a major problem in mining rich regions.
Administrative Challenges in the Mining Sector: Allocations, Clearances, and Judicial Interventions
- Arbitrary allocation of coal mines leads to the long litigation and eventually cancellation of allocations and charges of corruption in block allocations.
- Delay in environmental clearances due to bureaucratic hindrances.
- Judicial interventions lead to long delays and losses for investors. For ex: SC imposed a heavy penalty on illegal mining without green clearances in Andhra Pradesh, Telangana, Karnataka, and Odisha in 2017. Banning of Vedanta group in Niyamgiri Hills of Odisha and shut down of 88 illegal mining leases in Goa in 2018.
Government Initiatives in the Mining Sector: Promoting Sustainability, Monitoring, and Welfare
- Star rating of mining leases to establish a sustainable development framework for the Indian mining sector.
- An MoU was signed between the Indian Bureau of Mines (IBM) and the National Remote Sensing Centre (NRSC), ISRO in January 2016 to undertake a pilot project on “monitoring of mining activities using satellite imagery” to deter illegal mining.
- The Mining Surveillance System (MSS) is launched to check illegal mining through automatic remote sensing detection technology.
- District Mineral Foundation Fund (DMF) was established for the welfare of mining-affected people and areas under Pradhan Mantri Khanij Kshetra Kalyan Yojana [PMKKKY].
- The National Mineral Exploration Policy has been released to attract private exploration agencies.
- 100% FDI permitted via automatic route for mining and exploration of metal and non-metal ores. And approval route for mining of titanium bearing minerals and its ores.
National Mineral Policy 2019: Boosting Private Sector Participation, Sustainability, and Equitable Development
It includes provisions which will give a boost to the mining sector such as:
- Encouraging the private sector to take up exploration, on a revenue sharing model.
- Provision of merger and acquisition of the mining entities and transfer of mining leases and creation of dedicated mineral corridors, and use of coastal waterways and inland shipping for evacuation and transportation of minerals to boost private sector mining areas.
- It also mentions a long term import-export policy for minerals, which will help the private sector in planning and bring stability in business.
- The policy also makes efforts to harmonize taxes, levies, and royalty with the world benchmarks to help the private sector.
- Provisions for e-governance, IT-enabled systems, awareness and information campaigns have been incorporated for regulations.
- The utilisation of the District Mineral Fund for the equitable development of project affected persons and areas.
- It also introduces the concept of intergenerational equity that deals with the well-being not only of the present generation and also of the generations to come.
- It also proposes to constitute an inter-ministerial body to institutionalise the mechanism for ensuring sustainable development in mining.
Mineral Laws (Amendment) Bill, 2020: Removing Restrictions on End-use of Coal
- Removal of restriction on end-use of coal:
- Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specific end-uses such as power generation and steel production.
- The Bill removes this restriction on the use of coal mined by such companies. And thus companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.
Eligibility for auction of coal and lignite blocks:
- The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.
Composite License for Prospecting and Mining: Streamlining Activities in the Mineral Sector
- The Bill adds a new type of license, called prospecting license-cum-mining lease. It will be a composite license providing for both prospecting and mining activities.
- Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively. Prospecting includes exploring, locating, or finding mineral deposits.
Advance Action for Auction: Facilitating Timely Re-Auction of Mining Leases
- The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.
- Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.
Transfer of Statutory Clearances in Mining: Streamlining Processes for New Bidders
- The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.
- During this period, the new lessee will be allowed to continue mining operations. However, the new lessee must obtain all the required clearances within this two-year period.
- Currently, upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction. This new lessee is required to obtain statutory clearances before starting mining operations.
Streamlining Approvals: Bill Proposes Exemption from Prior Central Approval in Certain Coal and Lignite Cases
- The Bill provides that prior approval of the central government will not be required by the state government in granting licenses for coal and lignite, in certain cases.
- These include cases where the allocation has been done by the central government, and the mining block has been reserved to conserve a mineral.
- Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite.
Energy Resources: Challenges and Dominant Sources
Introduction:
- The energy sector is fundamental to growth and development.
- Energy is one of the major parts of the economic infrastructure, being the basic input needed to sustain economic growth. There exists a strong relationship between economic development and energy consumption.
- The more developed is a country, the higher is the per capita of energy consumption and vice-versa. Human civilization relies on different sources of energy.
- Presently, 304 million Indians do not have access to electricity and around 500 million Indians are dependent on solid biomass for cooking.
- India’s per capita electricity consumption remains a fraction of major economies (in 2017,its per capita energy consumption was about 625.6 kilogram of oil equivalent (kgoe) against the world average of 1860 kgoe ).
- India’s energy mix is dominated by coal with a 49.6 percent share, followed by oil (28 percent), biomass (11.6 per cent), gas (7.3 per cent), renewable and clean energy (2.2 per cent) and nuclear energy (1.2 per cent).
Types of Energy resources in India
Energy Sources: Conventional and Non-Conventional Classification
- Conventional sources
- Commercial
- Coal
- Petroleum
- Electricity
- Non-Commercial
- Fire wood
- Straw
- Dried dung
- Commercial
1. Non-conventional sources
- Bio energy
- Solar energy
- Wind energy Tidal energy
- Energy from
- urban waste
| Conventional Sources |
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| Non-Conventional Sources |
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Difference Between Conventional and Non-conventional Sources of Energy
| Conventional sources of energy | Non-conventional sources of energy |
| These sources of energy are also known as a non-renewable source of energy | These sources of energy are also known as a renewable source of energy |
| They find both commercial and industrial purposes | They are mainly used for household purposes |
| These can be considered to be one of the reasons for the cause of pollution | These are not responsible for the cause of pollution |
| Coal, fossil fuels are two examples | Wind, solar energy and Biomass two examples |
Conventional Energy resources in India
Energy Powerhouse: Significance and Characteristics of Coal in India
- Coal is the most important and abundant fossil fuel in India used for thermal power generation, smelting of iron ore, production of steel and domestic heating.
- Also called black gold.
- Found in sedimentary strata [layers of soil].
- Contains carbon, volatile matter, moisture and ash [in some cases Sulphur and phosphorous]
- Mostly used for power generation and metallurgy.
- Coal reserves are six times greater than oil and petroleum reserves.
| Classification of Coal: | |
| Peat |
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| Lignite |
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| Bituminous Coal |
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| Anthracite Coal |
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Energy Reserves in India: Geographic Distribution of Coal and Lignite
- India has the fifth largest coal reserves in the world after the USA>Russia>Australia>China.
- Indian coal has high ash content and high fusion temperature.
- Around 98% of India’s coal reserves and 99% of total coal production are from Gondwana
- Deposits of Tertiary coal are mainly confined to the extra peninsula. Important areas of Tertiary coal include parts of Assam, Meghalaya, Arunachal Pradesh, Nagaland, Himalayan foothills of Darjeeling in West Bengal and J&K.
- Lignite deposits occur in the tertiary sediments in the southern and western parts of peninsular shield particularly in Tamil Nadu, Puducherry, Kerala, Gujarat & Rajasthan and also Jammu & Kashmir.
1. Gondwana coal fields [250 million years old]
- Gondwana coal makes up to 98 per cent of the total reserves and 99 per cent of the production of coal in India. Satpuras, denudation [weathering + erosion] has exposed coal bearing Gondwana strata.
- The carbon content in Gondwana coal [250 million years old] is less compared to the Carboniferous coal [350 million years old][Almost Absent in India] because of its much younger age.
- Gondwana coal forms India’s metallurgical grade as well as superior quality coal.
- The Damuda series (i.e. Lower Gondwana) possesses the best worked coalfields accounting for 80 per cent of the total coal production in India. 80 out of 113 Indian coalfields are located in the rock systems of the Damuda series [lower Gondwana Age].
- Coking as well as non-coking and bituminous as well as sub-bituminous coal are obtained from Gondwana coal fields.
- Anthracite is generally not found in the Gondwana coal fields.
- The volatile compounds and ash (usually 13 – 30 per cent) and doesn’t allow Carbon percentage to rise above 55 to 60 per cent. [It requires few million years more if the quality has to get better. Remember Gondwana coal is 100 million years younger than Carboniferous coal].
- Gondwana coal is free from moisture, but it contains Sulphur and phosphorus.
- These basins occur in the valleys of certain rivers viz., the Damodar (Jharkhand-West Bengal); the Mahanadi (Chhattisgarh- Odisha); the Son (Madhya Pradesh Jharkhand); the Godavari and the Wardha (Maharashtra-Andhra Pradesh); the Indravati, the Narmada, the Koel, the Panch, the Kanhan and many more.
2. Tertiary Coal Fields [15-60 million years old]
- Tertiary coal 15 to 60 million years old. Carbon content is very low.
- Mainly confined to the extra-Peninsula [Jammu and Kashmir, Himachal Pradesh, Assam, Arunachal Pradesh etc.]
- Coal generally has low carbon and high percentage of moisture and Sulphur.[It takes few hundred million years for the carbon content to improve].
- Important areas of Tertiary coal include parts of Assam, Meghalaya, Arunachal Pradesh, Nagaland, Himalayan foothills of Darjeeling in West Bengal, Jammu and Kashmir, Uttar Pradesh, Rajasthan, Kerala, Tamil Nadu (90 per cent of the reserves) and the union territory of Pondicherry also bear tertiary coal reserves [exceptions].
Energy Riches Across Indian States: Coal Reserves and Production Highlights
| State | Distribution |
| Jharkhand |
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| Odisha |
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| Chattisgarh |
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| West Bengal |
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| Madhya Pradesh |
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Energy Dynamics Worldwide: Global Distribution and Historical Impact of Coal Reserves
- Viable coal deposits are available with more than 70 countries, with the USA, Russia, China and Australia with largest reserves.
- China and India are the top coal producers in the world.
- Most of Russia’s coal in the Siberian Region is untapped.
- Carboniferous coal of the Great Lakes and Appalachians region helped the US become a leading industrialized nation.
- Coal reserves in the Ruhr and Rhineland region coupled with rich iron deposits have made Germany a leading industrial superpower of Europe.
- England too benefited immensely from its coal reserves of South Wales, Yorkshire, Manchester, Liverpool etc. The Industrial revolution began here mainly due to rich coal reserves.
| Not all deposits of minerals are recoverable in a viable fashion with levels of current technology. Estimated reserves are uncertain predictions based on geological and engineering data about the presence of a certain mineral. Proven reserves are considered to be recoverable economically with current technology |
Energy Challenges in Indian Coal Industry: A Multifaceted Perspective
- Not enough high-grade cooking coal – depend on import
- Good and low-grade coal found together – selective mining so wasteful
- Land for coal mining is becoming a major issue.
- There is a tendency to expand opencast mining and discourage underground operation even for better quality coal reserves. This aggravates the land availability problem.
- There is no competitive coal market
- Deep mining techniques primitive à high casualty
- Policy does not allow simultaneous exploration of coal and Coal Bed Methane
- Efficiency of Indian coal mining is very low – lack of tech + equipment
- Poor connectivity from mines to consumer locations
- The distribution of coal is uneven.
- High ash content and low caloric value.
- Pilferage at several stages also adds to losses – bad transportation infrastructure.
- Short life of metallurgical coal.
Energy Hazard: Unregulated Rat-Hole Mining in Meghalaya
- A rat-hole mine involves digging of very small tunnels, usually only 3-4 feet deep, in which workers, more often children, enter and extract coal.
- According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities.
Environmental Consequences of Rat-Hole Mining in Meghalaya: A Critical Assessment
- The water sources of many rivers, especially in Jaintia Hills district, have turned acidic.
- The water also has high concentration of sulphates, iron and toxic heavy metals, low dissolved oxygen (DO) and high BOD, showing its degraded quality.
- The roadside dumping of coal is a major source of air, water and soil pollution.
- Off road movement of trucks and other vehicles in the area for coal transportation also adds to the ecological and environmental damage of the area.
- The practice has been declared as unsafe for workers by the NGT.
- The mines branch into networks of horizontal channels, which are at constant risk of caving in or flooding.
Petroleum and Mineral Oil: Fossil Fuel and Formation Process
- Petroleum (Petra à rock; Oleum à oil) or mineral oil (commonly known as crude oil) is a fossil fuel mined from sedimentary rocks of the earth.
- Petroleum fuels on burning gives little smoke and leaves no ash. So they are better than coal.
- It is formed from the remains of ancient marine organisms that were buried in the ocean floor.
- These remains get converted into hydrocarbon- rich fuel by the action of pressure and temperature.
- Composition à 90 to 95 per cent Hydrocarbons. 5 – 10% organic compounds containing oxygen, nitrogen, sulphur and traces of organometallic compounds.
Formation of Petroleum and Mineral Oil
- All sedimentary rocks do not contain oil.
- Most of the oil gets collected in the anticlines or fault traps.
- Oil on a commercial scale is usually found in crests of anticlines [where the sedimentary rock strata are inclined and folded].
- An oil reservoir must have three prerequisite conditions:
| 1 | Porosity (tiny gaps in soil) | So as to accommodate sufficiently large amounts of oil; |
| 2 | Permeability (allowing liquids or gases to pass through it) | To discharge oil and/or gas when well has been drilled; |
| 3 | Porous sandstone beds or fissured limestone | The porous sandstone beds or fissured limestone containing oil should be capped below by impervious beds [not allowing fluid to pass through]. |
Organization of the Petroleum Exporting Countries (OPEC)
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Distribution of Petroleum and Mineral Oil in India
- Most of the oil reserves in India are associated with anticlines and fault traps in the sedimentary rock formations of tertiary times.
- Mumbai High, the Khambhat Gulf and Assam are the most productive areas.
- Process began in the tertiary period [3 million years ago].
- In the tertiary period, aquatic life was abundant in various forms, especially the Page minor microscopic forms of flora and fauna.
- Conditions for oil formation were favourable especially in the lower and middle Tertiary period.
- Dense forests and sea organisms flourished in the gulfs, estuaries, deltas and the land surrounding them during this period.
- Distribution of Petroleum and Mineral Oil in India
- On shore distribution
- On shore distribution
Onshore Oil Distribution in India: Mainland Oil Fields
- The oil fields located on the mainland away from the coasts are called shore fields.
| Brahmaputra valley of North-east India: |
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| Rajasthan Oil Fields |
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| Gujarat Oil Fields |
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Offshore Oil Fields in India
| Western Coast |
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| Eastern Coast |
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Extent of Oil Bearing Strata in India
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Petroleum Refining in India
- India’s first oil refinery started working way back in 1901 at Digboi in Assam.
- 1954: another refinery at Tarapur (Mumbai).
- Refinery hub and refining capacity exceeds the demand. Excess refined oil and other petroleum products are exported.
- Oil from wells is transported to nearest refineries through pipelines.
- India’s current refining capacity of 249.9 million tonnes per annum (2020) exceeds domestic consumption of petroleum products which was 213.7 million tonnes in the previous fiscal.
- Jamnagar refinery in Gujarat is world’s largest
| Advantages of Pipeline | Disadvantages of Pipeline |
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Oil refineries in India
| Crude Oil Pipelines |
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| Petroleum Product Pipelines |
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Global Distribution of Petroleum and Mineral Oil
- More than half of the world’s proven oil reserves are located in the Middle East (including Iran but not North Africa).
- Canada, the United States, Latin America, Africa, and the region occupied by the former Soviet Union contains less than 15 percent of the world’s proven reserves. [Reserves are identified quantities of petroleum that are considered recoverable under current economic and technological conditions.]
- The amount of oil a given region produces is not always proportionate to the size of its proven reserves.
- For example, the Middle East contains more than 50 percent of the world’s proven reserves but accounts for only about 30 percent of global oil production.
- The United States, by contrast, has less than 2 percent of the world’s proven reserves but produces about 10 percent of the world’s oil.’
| Oilfields in Saudi Arabia |
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| Oil Fields in Iraq, Kuwait, & Iran |
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| Oil Fields in Russia |
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| Oil Fields in United States, Mexico, & Canada |
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| Oilfields in Venezuela & Brazil |
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| Oilfields in United Kingdom |
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| Oilfields in African Region |
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Strategic Petroleum Reserve (SPR) in India
- To ensure energy security, the Government had decided to set up 5 million metric tons (MMT) of strategic crude oil storages at three locations namely, Visakhapatnam, Mangalore and Padur (near Udupi).
- These strategic storages would be in addition to the existing storages of crude oil and petroleum products with the oil companies and would serve as a cushion during any external supply disruptions.
- In the 2017-18 budget, it was announced that two more such reserves will be set up Chandikhole in Jajpur district of Odisha and Bikaner in Rajasthan as part of the second phase.
- The construction and maintenance of the Strategic Crude Oil Storage facilities is being managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle, which is a wholly owned subsidiary of Oil Industry Development Board (OIDB) under the Ministry of Petroleum & Natural Gas.
Strategic Petroleum Reserves: Mitigating India’s Mineral Dependency on Fossil Fuels
- In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today.
- It is unlikely that India’s energy needs will dramatically move away from fossil fuels in the near future. Over 80% of these fuels come from imports, a majority of which is sourced from West Asia. This is a major strategic risk and poses a massive financial drain for an embattled economy and its growing current account deficit.
- To address energy insecurity, the Atal Bihari Vajpayee government mooted the concept of strategic petroleum reserves in 1998. Today, with India consuming upwards of four million barrels of crude every day (January 2015 figures), the case for creating such reserves grows stronger.
Natural Gas: A Mineral Resource with Global Reserves and Distribution in India
- Natural gas is a mixture of hydrocarbons primarily Ethane and methane.
- It is formed during the formation of petroleum so it is often found dissolved in crude oil.
- Some of the world’s largest gas fields occur in the arctic, Russia, Iran and USA.
- Distribution in India: Reserves found in Krishna Godavari Basin, Brahmaputra valley, Gulf of Khambhat and Barmer district of Rajasthan.
- Sometimes, pressure of natural gas forces oil up to the surface. Such natural gas is known as associated gas or wet gas.
- Some reservoirs contain gas and no oil. This gas is termed non-associated gas or dry gas.
- Often natural gases contain substantial quantities of hydrogen sulfide or other organic sulfur compounds. In this case, the gas is known as “sour gas.”
- Coalbed methane is called ‘sweet gas’ because of its lack of hydrogen sulfide.
- On the market, natural gas is usually bought and sold not by volume but by calorific value.
Natural Gas FormationIt is similar to the formation of Petroleum. Natural gas was formed millions of years ago when plants and tiny sea animals were buried by sand and rock. Layers of mud, sand, rock, plant, and animal matter continued to build up until the pressure and heat turned them into oil and natural gas. |
Energy Diversification: The Mineral Significance of Natural Gas in India’s Power Landscape
- Power stations using gas accounted for nearly 10 percent of India’s electricity.
- Despite the country reeling under a power crisis, gas power stations are lying idle due to lack of feedstock.
- The Government has frozen the construction of new gas plants until 2015- 16 because of gas shortages.
- Existing plants are operating below capacity on expensive imported liquefied natural gas (LNG).
- India’s oil reserves are insufficient for its growing energy needs and the situation is made worse by policy paralysis which increases the gestation period of the projects.
- We need to diversify our energy basket through alternate fuels so that we do not have to bear the brunt of external shocks.
Distribution of Natural Gas in India
- KG basin, Assam, Gulf of Khambhat, Cuddalore district of Tamil Nadu, Barmer in Rajasthan etc.
India’s Energy Potential: Exploration into Unconventional Hydrocarbons
- Conventional reservoirs of oil and natural gas are found in permeable sandstone.
- Unconventional Gas Reservoirs occur in relatively impermeable sandstones, in joints and fractures or absorbed into the matrix of shales [Shale is a Sedimentary Rock], and in coal
- Given current economic conditions and state of technology, they are more expensive to exploit.
- Example: Tight gas, shale gas, and coal- bed methane.
| Coal Bed Methane: |
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| Shale Gas: |
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| Gas hydrate: |
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Hydrocarbons Vision-2025: A Roadmap for Energy Security, Quality of Life, and Global Competitiveness
The Hydrocarbons Vision-2025, presented in the year 2000, laid down the framework which would guide the policies relating to the hydrocarbons sector for the next 25 years. It includes:
- To assure energy security by achieving self-reliance through increased indigenous production and investment in equity oil abroad.
- To enhance quality of life by progressively improving product standards to ensure a cleaner and greener India.
- To develop the hydrocarbon sector as a globally competitive industry which could be benchmarked against the best in the world through technology upgradation and capacity building in all facets of the industry.
- To have a free market and promote healthy competition among players and improve the customer service.
- To ensure oil security for the country keeping in view strategic and defense considerations.
Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016 which has the four main facets:
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Non-conventional Energy Resources in India
- Nuclear Energy:
- Nuclear energy has emerged as a viable source in recent times.
- Core Raw materials for nuclear energy Uranium, Thorium, Heavy water, Zirconium, Helium.
| Uranium |
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| States | Mineral rich regions – Uranium |
| Jharkhand | Jadughoda, Bhatin, Narwapahar, Turamdih |
| Meghalaya | Domiasiat, Wahkyn |
| Andhra pradesh | Tumallapalle (Nalgonda)
Lambapur- peddagattu |
| Karnataka | Gogi |
| Rajasthan | Rohil |
List of Nuclear Power Plants in India
| Tarapur | Operator: Nuclear Power Corporation of India Limited (NPCIL
Location: Maharashtra Type: Boiling water reactor (BWR) & Pressurized heavy water reactor (PHWR) Total capacity (MW): 1,400 |
| Rawatbhata | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Rajasthan Type: Pressurized heavy water reactor (PHWR) Total capacity (MW): 1,180 |
| Kudankulam | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Tamil Nadu Type: Water-Water Energetic Reactor (VVER)-1000 Total capacity (MW): 2,000 List of Hydro Power Plants in India |
| Kaiga | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Karnataka Type: Pressurized heavy water reactor (PHWR) Total capacity (MW): 880 Operational-nuclear-power-plants-in-India-2020 |
| Kakrapar | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Gujarat Type: Pressurized heavy water reactor (PHWR) Total capacity (MW): 440 List of Indian States in Mineral Wealth |
| Kalpakkam | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Tamil Nadu Type: Pressurized heavy water reactor (PHWR) Total capacity (MW): 440 |
| Narora | Operator: Nuclear Power Corporation of India Limited (NPCIL)
Location: Uttar Pradesh Type: Pressurized heavy water reactor (PHWR) Total capacity (MW): 440 |
Distribution of Uranium Across the World
- Largest viable deposits are found in Australia, Kazakhstan, and Canada.
- Olympic Dam and the Ranger mine in Southern Australia are important mines in Australia.
- High-grade deposits are only found in the Athabasca Basin region of Canada.
- Cigar Lake, McArthur River basin in Canada are other important uranium mining sites.
- The Chu-Sarysu basin in central Kazakhstan alone accounts for over half of the country’s known uranium resources.
| Thorium |
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| Sources in India
India has largest reserve |
Sources in the world |
| Kerala beach sand: monazite | Brazil |
| Coastal areas of Tamil Nadu, Odisha, Andhra Pradesh. | Australia |
| USA | |
| Egypt |
Revolutionizing Energy Landscape: India’s Ambitious Targets for Renewable Energy
- India has set an ambitious target of reaching 175 GW of installed capacity from renewable energy sources including 100 GW from solar and 60 GW from wind by the year
Embracing Renewable Energy: A Triad of Environmental, Economic, and Social Imperatives
- Environmental concern:
- India is currently the world’s third largest carbon emitter
- According to the Copenhagen Accord, which India signed along with 167 other countries in 2009, 80 % of the world’s proven coal, oil and natural gas reserves must remain in the ground in order to avoid warming the planet beyond the internationally agreed limit of 2°C rise in average temperature. Same also applies to INDC and Green India Mission.
- So, from an ecological point of view, renewable energy must come up on a large scale and not as isolated stories of miracles.
- Economic point of view:
- Coal reserves are depleting and getting expensive.
- Many major plants in the country are facing severe coal shortages.
- In the last fiscal, India imported over 150 million tonnes of fossil fuel, widening the country’s fiscal deficit to further dangerous levels.
- Renewable energy will address power shortage challenges, which cost Rs 4.2 lakh crore a year.
- From a social point of view:
- The government had promised to deliver electricity to the entire population.
- But considering that providing electricity to all means providing it for 24 hours of 365 days and not four hours in a day, the government has missed the target by a long shot.
- Renewable energy is the need of the hour and it is capable of delivering what India needs.
Break up of Renewable Energy Installed Capacity as on 31.01.2020 (in MW)
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Challenges in Renewable Power Generation: Addressing Regional Concentration, Infrastructure Insufficiency, and Financial Barriers
- Regional Concentration of Renewable Energy Potential
- Because Renewable Energy is location-specific and not evenly distributed, there are problems scaling up grid connected renewable power.
- Insufficiency and High cost of Evacuation Infrastructure
- Utilization of variable Renewable Energy requires a robust transmission infrastructure from remotely located generating plants to the load centers.
- This requires infrastructure such as roads etc as well as land for installation.
- Financial Barriers
- Renewable Energy technologies require large initial capital investment.
- These technologies need to be supported until technology breakthroughs and market volumes generated are able to bring the tariff down at the grid parity level.
- Low penetration of renewables for urban and industrial applications
- Policy interventions to incentivize creation of financeable business models for the off-grid renewable sector.
- Off-grid renewable sector is much more competitive with conventional power as it avoids investment in transmission to remote location.
- e.g. Rice Husk gasifiers-based electricity generation is one such model.
1. Solar Power Revolution: India’s Energy Transformation and Global Collaboration through ISA
- India lying in the tropical belt has an advantage of receiving peak solar radiation for 300 days, amounting 2300-3,000 hours of sunshine equivalent to above 5,000 trillion kWh.
Advantages of Solar Power
- Solar Energy is available throughout the day which is the peak load demand time.
- Solar energy conversion equipment have longer life and need lesser maintenance and hence provide higher energy infrastructure security.
- Low running costs & grid tie-up capital returns (Net Metering).
- Unlike conventional thermal power generation from coal, they do not cause pollution and generate clean power.
- Abundance of free solar energy in almost all parts of the country.
- No overhead wires- no transmission loss
Government initiatives of Solar Power
- The Ministry of new and renewable energy is the nodal agency to tackle India’s renewable energy issues.
- National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenge.
- The Indian Renewable Energy Development Agency (IREDA) is a Non-Banking Financial Institution under the administrative control of this Ministry for providing term loans for renewable energy and energy efficiency projects.
- The National Institute of Solar Energy was created as an autonomous institution under MoNRE, an apex body for R&D.
- Establishment of solar parks and ultra-major solar power projects and enhancing grid connectivity infrastructure.
- Promotion of canal bank and canal tank solar infrastructure.
- Sustainable rooftop implementation of Solar transfiguration of India (SRISTI) scheme to promote rooftop solar power projects in india.
- Suryamitra programme to prepare qualified workforce.
- Renewable purchase obligation for large energy consumer customers.
- National green energy programme and green energy corridor.
- International solar Alliance:
- The International Solar Alliance (ISA) is an alliance of more than 120 countries initiated by India, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn, now extended to all members of the UN.
- The Paris Declaration establishes ISA as an alliance dedicated to the promotion of solar energy among its member countries.
- When the ISA Framework Agreement entered into force on December 6th, 2017, ISA formally became a de-jure treaty based International Intergovernmental Organization, headquartered at Gurugram, India.
- Objectives: The ISA’s major objectives include global deployment of over 1,000GW of solar generation capacity and mobilization of investment of over US$ 1000 billion into solar energy by 2030.
2. Harnessing Wind Energy: India’s Position, Challenges, and Government Initiatives for Sustainable Growth
- India is at 4th position in terms of wind power installed capacity after China, USA and Germany.
- According to the National Institute of Wind Energy, India’s installable wind energy potential is 302 GW with towers of a height of 100 meters.
Challenges:
- Land Availability: The prices of ideal sites for projects have increased after a push for renewable energy.
- Poor transmission and unavailability of grid for power transmission have impacted the growth of wind
- energy sector.
- Lack of finance capacity: According to a study by the Indian Renewable Energy Development Agency, India needs around INR 17.5 trillion (US $264 billion approximately), in financing to achieve its target of 160 gigawatts of solar and wind energy by 2022. This could be solved by tapping green financing mechanisms present in markets like Green Bond etc.
- Non-payment to developers due to poor financial health of public electricity distribution utilities.
Government Steps to promote wind energy
- National Offshore Wind Energy Policy
- Guidelines for Development of Onshore Wind Power Projects: To facilitate development of wind projects in an efficient, cost effective and environmentally benign manner.
- Renewable Purchase Obligation specified in the Electricity Act, 2003 has given fillip to the enhancement of wind-generators in India.
- Green Energy Corridors Project: Power evacuation and transmission infrastructure for renewables is being augmented as part of the “Green Energy Corridors” project.
| Advantages of offshore wind power over the onshore wind power |
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Challenges:
- Cost: Costs for foundations, installation, electrical connections and operation and maintenance (O&M) are a large share of the total for offshore installations compared to onshore wind farms.
- Sustained high-speed wind, high humidity and salt water make every aspect of installation and operation much more difficult, time-consuming, more dangerous and far more expensive than sites on land.
- Data: the data required for the calculation of off- shore wind potential and identification of suitable sites is not adequately available. Wind resource map consists of the wind speed and wind density at certain levels above the sea.
3. Hydro Power Sector in India: Overcoming Challenges and Encouraging Initiatives
- India is endowed with a large hydropower potential of 1,45,320 MW of which only about 45,400 MW has been utilized so far. Only about 10,000 MW of hydropower has been added in the last 10 years.
Issues faced by hydropower sector:
- Lack of enabling infrastructure – such as roads, bridges to access remote areas where such potential sites are available.
- Delay due to land acquisition – for dams, power houses etc.
- Delay due to environment and forest clearances.
- Rehabilitation and Resettlement – which invite opposition from locals for employment, extra compensation etc. It also creates law and order problems like blasting, muck disposal.
- Cultural/ Religious Issues – sentiments attached with rivers i.e religious and spiritual beliefs.
- Political will – lacks political traction due to long gestation period, Interstate issues, especially over Riparian rights. E.g. Mullaperiyar Dam (between Kerala and Tamil Nadu)
- High Tariff of Hydro Projects – as compared to other sources of power (conventional as well as renewable sources) mainly due to construction of complex structures which have long gestation period, unavailability of loans of lower interest rate & longer tenures, high R&R cost, infrastructure etc.
- Financing Issues – High cost of Finance and lack of long tenure funding for hydropower projects.
- Levying of water cess by the States – e.g. J&K
Hydro Energy Sector: Initiatives So Far
- National Electricity Policy, 2005: The policy lay emphasis on full development of the feasible hydro potential in the country.
- Hydro Power Policy, 2008: Under this transparent selection criteria to be followed by the States for awarding sites to private developers.
- National Rehabilitation & Resettlement Policy, 2007: It aims to minimize displacement and address special needs of Tribal and vulnerable sections who get displaced due to Developmental Projects.
- Tariff Policy, 2016: Policy aims to promote Hydro power generation including Private sector participation to provide adequate peaking reserves, reliable grid operation and integration of variable Renewable Energy sources.
4. Energy Security: Vital for India’s Economic Stability and Long-Term Growth
- It is defined as the uninterrupted availability of energy sources at an affordable price.
Why need energy security?
- India imports 80 percent of its oil needs and is the third largest oil consumer in the entire world.
- India’s energy consumption is expected to grow 4.5 percent every year for the next 25 years.
- Recently due to high International Crude Oil Prices, Current Account Deficit (CAD) inflated because of higher cost of oil import, raising concerns about long term economic stability in India, highlighting importance of energy security.
Challenges for India’s Energy Security
- Policy Challenges: Failure to attract international investment in domestic hydrocarbon exploration
- Accessibility Challenge: Presently, 304 million Indians do not have access to electricity and around 500 million Indians are dependent on solid biomass for cooking.
- Infrastructure and skill related challenges: Lack of skilled manpower and poorly developed infrastructure for developing conventional and unconventional energy. India lacks transportation infrastructure for making energy accessible
- Economic challenges: Rising fuel subsidies, rising CAD creates difficult conditions for the economy.
- External Challenges: India’s fragile energy security is under severe pressure from its rising dependence on imported oil, regulatory uncertainty, international monopolies and opaque natural gas pricing policies
India’s Energy Trajectory: Paris Accord Commitments and Future Projections
- As a part of Nationally Determined Contributions as per the Paris Accord on Climate Change, India has made a pledge that by 2030, 40% of our installed power generation capacity shall be from non-fossil fuel sources and also by 2030, reduce emission intensity of GDP by 33-35 % from 2005 level.
- Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy consumption has increased the energy demand of the country.
- In 2015, India decided that 175 GW of renewable energy capacity will be installed by the year 2022.
- This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power.
- The substantial higher capacity target will ensure greater energy security, improved energy access and enhanced employment opportunities
Statistics and Fact related energy sector
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India’s Demand for Energy
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