AIR Spotlight is an insightful program featured daily on the All India Radio Newsonair. In this program, many eminent panellists discuss issues of importance which can be quite helpful in IAS exam preparation. This article features a discussion with the Secretary of the Union Ministry of Coal.
Participants:Â
- Dr. Anil Kumar Jain, Secretary, Ministry of coal
- Shubhomoy Bhattacharjee, Economic Analyst
Context: The handling of the coal crisis last year (2021) and coal sector preparedness in the current year (2022).
Importance of coal:
- Thermal Power Plants are immensely dependent on coal for electricity production.
- Non-power sectors like the Steel and Aluminum industries also require coal as a raw material.
Reasons for the coal crisis of 2021:
- The series of events that amplified the coal crisis are:
- Nationwide lockdown induced by the Delta strain of COVID-19.
- This resulted in lower power consumption further increasing the coal stocks in Quarter 1 (April – June).
- Since the demand went down, the production of coal was halted.
- The relaxation of the lockdown resulted in a revival of the economy and huge demand for coal.
- Quarter 2 (July – September) being the monsoon season makes it difficult to mine coal, which resulted in further deterioration of stocks.
- 8% of the power generating capacity which is based on imported coal was also impacted due to the global slowdown.
Consequences of the Coal Crisis:
- Coal prices shot up by three times.
- Extremely low stocks with the Thermal Power Plants.
The measures adopted in 2020:
Three-pronged strategies have been designed to ensure that a crisis-like situation does not occur in future:
- Ensuring enhanced capacity of rakes and smooth railway transportation.
- The target of Coal India Limited’s (CIL) production is increased from 622 million tonnes to 700 million tonnes.
- The private sector and non-CIL companies have been pressed into action by increasing their capacity from 89 million tonnes to 140 million tonnes.
Measures taken by Government for Energy Security:
- To meet the rising demand for electricity domestically:
- Increased coal production.
- Opened the coal sector for commercial mining.
- The entry barrier to get a coal mine is relaxed by no expectation of technical experience, capital requirement and small revenue share.
- Increasing share and importance given to renewable energy in the total energy basket.
Conclusion:
Electricity is a vital commodity for each and every individual and business. The government is taking every possible step to ensure that it is put into the system and every state has adequate access to it. Coal thus forms the backbone in ensuring energy security.
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