1. ENERGY CONCLAVE 2006 * By : Shri S. Chaudhuri, Chairman-cum-Managing Director, CMPDI Chairman-cum-Managing Director, CMPDI

2. Mobilization of Coal Supply   Resource base   Enlarging Resource base   Enhancing Extractable Reserve   Indigenous Coal Supply   Energy from coal seams- Emerging Technologies   Issues on sustainable coal supply

3. Mobilization of Coal Supply Resource Base

4. TYPE-WISE COAL RESOURCES OF INDIA AS ON 1.1.2006 Coal TypeCategoryTotal Proved (Bt) Indicated (Bt) Inferred (Bt) (%) Prime coking 4.60.7-5.32.1 Medium coking 11.411.81.925.19.9 Semi coking0.51.00.21.70.7 Total coking16.513.52.132.112.7 Non coking78.9106.235.2220.387 Tertiary(NE)0.50.10.41.00.4 Total95.9 (37.86%) 119.8 (47.3 %) 37.7 (14.84%) 253.3

5. DEPTH-WISE COAL RESOURCES OF INDIA AS ON 1.1.2006 Depth (m) Proved (Bt) Indicated (Bt) Inferred (Bt) Total (Bt)(%) 0-300 73.866.614.4154.861.1 300-600 6.741.517.565.725.9 0-600 (Jharia) 13.70.5-14.25.6 600-1200 1.711.25.818.77.4 Total 95.87119.8637.67253.3100 % 37.847.314.9100

6. DISTRIBUTION OF COAL RESOURCES OF INDIA BlocksTotal % Share CIL91.6936.2 Non-CIL (Captive) 29.3511.6 Non-CIL (Others) 27.7511.0 Others (TISCO etc.) 3.121.2 Un-blocked83.3132.9 Godavari Valley 17.146.8 NE Region 0.940.4 TOTAL : 253.3100 AS ON 1.1.2006 in billion tonnes

7. Mobilization of Coal Supply Enlarging Resource base

8. Per Capita Proved Coal Reserve CountryPopulation (million) Proved reserve at the end of 2005 (Bt) Per capita proved reserve (in tonne) INDIA 10809083 USA 296111375 AUSTRALIA 2038.61930 RUSSIA 14449.1341 Source: WEC and BP Statistical Review, 2005

9. Enlarging Coal Resource Base  Regional / Promotional exploration -  About 5,000 Sq. Km. yet to be covered  Present rate about 2200 sq. km. area in plan period.  Resource addition will be mostly in >300m depth range Jan’96 to Jan’01Jan,01 to Jan,06 <300m9.56Bt(80%)19.17 Bt (48.6%) >300m2.39Bt(20%)20.22 Bt (51.4%) Total11.95Bt39.40 Bt  Thrust areas for XI plan  Left out shallower region (marginal areas)  Superior non-coking & coking coal deposits at depth.  Likely achievement in X Plan  Regional-1.5 lakhs m  Promotional-3.8 lakhs m Total-5.3 lakhs m

10.  Detailed Exploration Capacity CMPDI1.92 lakh metre/year SCCL1.30 lakh metre/year State Govt.0.10 lakh metre/year Outsourcing 2.50 lakh metre/year* by CMPDI Total5.82 lakh metre/year * Subject to availability of agencies

11. 0 – 300m (81 Bt.) > 300m (76 Bt.) Total Resources (253 Bt.) Non-coking (76.5 Bt.) Indic. & Infer. (157 Bt.) Proved (96 Bt.) Coking (4.5 Bt.) REST (73.8 Bt.) SCCL & NER (2.8 Bt.) Inferred (13.8 Bt.) Indicated (60 Bt.) Inferior (42.7 Bt.) Superior (17.2 Bt.) * RESOURCE STATUS

12. Indicated + Inferred ( 0 – 300 m) (73.8 Bt.) Rest (9.0 Bt.) In 9 Major cf (64.8 Bt.) < 300 M (22.37Bt.) RESOURCES TARGETTED FOR EXPLORATION (28.7Bt) Amenable to independent OC Mining (10.7 Bt.) Not amenable to independent OC Mining (27.9 Bt.) Constrained (10.6 Bt.) Not available for Exploration (15.6 Bt.) > 300 M (6.37 Bt.)) (Incl.1.3Bt coking) CIL (8.0 Bt.) Non-CIL (14.37 Bt.) RESOURCE STATUS *

13. Detailed Exploration in XI Plan Drilling in Lakhs m Capital (approx) In Rs. Crore Likely addition in Proved reserves In Bt CIL 5.03158.0 Non-CIL (MoC) 17.5113021 Total 22.5144529.0 SCCL 6.5N.A  Likely Proved reserves at the end of XI Plan – 135 Bt.

14. Mobilization of Coal Supply Enhancing Extractable Reserve

15. Tentative Extractable Coal Reserve Area Geological Resource (In Bt) AS ON 1.1.2005 Extractable Reserve (Bt) ProvedIndicatedInferredTotal CIL67.7119.424.5691.6930.03 Rest25.2597.6633.24156.1522.21 Total92.96117.0837.80247.8452.24 Enhancing Extractable Resource Base  Needs continued up gradation on the basis of Further proving Improved underground mining technology Updated economic viability Removal of surface constraints etc

16. UNFC SCHEME-CLASSIFICATION OF COAL RESOURCE BASE ECONOMIC AXIS (E) FEASIBILITY AXIS (F) GEOLOGICAL AXIS (G) Proved(1)Indicated(2)Inferred(3) Economical (1) PR Available (1) 111112113 Pre-feasibility study (2) 121122123 PR not available (3) 131132133 Marginally Economical (2) PR Available (1) 211212213 Pre-feasibility study (2) 221222223 PR not available (3) 231232233 Sub- Economical (3) PR Available (1) 311312313 Pre-feasibility study (2) 321322323 PR not available (3) 331332333 UNFC Type codification of Indian coal resources in the full mine / block areas :

17. THE UNFC SCHEME

18. Enhancing Extractable Reserves  Expediting detailed exploration for increasing ‘Proved’ resources.  Maximizing opencast operations  Technology up gradation for underground mine Extraction of reserves standing on pillars Extraction of reserves in thick & steep seams Addressing shortage of stowing material  Underground Coal gasification for mining low grade coal at deeper horizon  Implementation of Jharia & Raniganj Masterplan for fire & rehabilitation

19. Mobilization of Coal Supply Indigenous Coal Supply

20. Coal Production (2005-06) (in Mt) (provisional) CompanyCokingNon-cokingTotal CIL24.04319.33343.37 SCCL-36.1436.14 DVC/ IISCO/JSMDC/JK ML 0.830.981.81 TISCO6.510.016.52 Meghalaya-5.575.57 New Entrants (JSPL, BECML, ICML, HIL, MIL, BLA, CML) 0.0113.5813.59 All India 31.39375.61407.00

21. Demand Projection of Coal by various Agencies (in Million Tonnes)Source Sectors/ Period Base Year 06-0711-1216-1721-2224-25 X Plan Working Group X Plan Working GroupPower322469617 Captive Power 283237 Steel434040 Others807986 Total2001-024736207809811126 Coal Vision 2025 @ 8% GDP Coal Vision 2025 @ 8% GDPPower322427553699804 Captive Power 28446390112 Steel43546990105 Others80104143201246 Total2006-0747363082810791267

22. DEMAND OF COAL AT 8% GDP GROWTH (In Mt) YEAR Integrated Energy Policy Vision Coal 2025 Power Non - PowerTotalPowerNon -PowerTotal 11-12493164657471158629 16-17 656221877 616212828 21-22814 2991113 7892901079 24-25 10003751375 9163511267 26-27 11334081541 10183961414 CAGR % 5.66.4 5.85.46.25.6 Share of coal based energy generation projected to decline from 85% in 2003-04 to 78% in 2031-32. Share of gas based energy is projected to increase to 20% from current level of 12%.

23. Producing Company XI Plan (2011-12) XII Plan (2016-17) XIV Plan (2025) CIL536 (OC -472,UG-64) 653 (OC -573,UG-80) 839 (OC-715, UG-124) Coal. Equiv. CBM-UCG -525 SCCL414547 Captive & TISCO/IISCO 4475175 Total6217781086 Fig. in Mt. Indigenous Coal Supply (As per Coal Vision 2025)

24. Demand vis-a-vis Availability Demand vis-a-vis Availability (As per Coal Vision 2025) 2016-172024-25 Domestic Production 7781086 Coking $(Washed Coal) 26(13) 36 (18) Low Volatile High Rank $(Washed Coal) 13(3) 13 (3) Non-Coking7341012 Coal equi. of CBM/UCG 525 Demand at 8% GDP Total8281267 Coking69105 Non-coking7591162 Gap(-)/ Surplus(+) at 8% GDP Coking (-)53{40} @ (-) 84{63} @ Non-coking (-)20# (-) 125 @ Equivalent quantity of Imported Coal with Ash <10% either through coking coal import/CIL overseas equity # Gap Shall be bridged with the middling from beneficiation of coking & low volatile high rank coal & by additional production from captive mines. $ Figures in brackets indicate benificiated coal with 17% ash level for use in Steel sector. Figures in Million Tonnes

25. 16-1724-25 Demand-supply gap of non coking coal as per Vision Coal 2025 20125 Demand-supply gap as per Integrated Energy Policy in 2024-25 70235 Production from captive Sector as per Vision Coal 2025 75175 Required Total Production by captive sector to bridge the gap in 2024-25 145410 Augmentation of coal production Figure in million tonnes

26. ALLOCATION STATUS OF COAL BLOCKS Particulars Total No. Allotted Application Invited Offered to State Govt. Available for allocation Expl. Regl. Expl. Expl. Expl. Expl. CIL retained for production 238(44.15) CIL Proposed to be released 51(9.20) 1 (0.19) 3 (0.69) ----40(5.80)8 (3.38) * Captive Blocks -CIL 136 $ (29.35) 67 (7.25) 14 14(6.22)17(1.94)--20(5.86)4(0.91)13(7.36) Captive Blocks -SCCL 7(0.55)1(0.06)-3(0.18)---3(0.31)- Non -CIL 109 (27.75) 2 (0.31) 4(2.37)---8(3.29)27(4.15)41(13.91) Total71(7.81)21(9.28)20(2.12)28(9.15)74(11.17)62(24.65) Figures within bracket are Resources in Bt. * Revised resources $ Includes one block which has been dropped from captive list

27. Blocks allottedFully exploredRegionally explored Total Till 2003No.29837 Reserves (Bt)2.571.283.85 2004No.415 Reserves (Bt)1.200.741.94 2005No.18321 Reserves (Bt)1.401.673.07 2006No.20929 Reserves (Bt)2.655.598.24 TotalNo.712192 Reserves (Bt)7.829.2817.10 Reserves in allotted blocks

28. Energy from coal seams - Emerging Technologies CBM/CMM/AMM

29.  CBM (Coal & Lignite) gas-in-place resource has been assessed as 1.78 TCM in an area of 16,222 Sq.Km in India.  16 CBM blocks have so far been allotted with prognosticated resource of 825 BCM in 7807 Sq. Km area.  10 CBM blocks proposed for allocation with prognosticated resource of about 600 BCM.  CMM resource assessed for virgin coal reserves in future mining areas - around 150 BCM.  Possibility of sizable resource of AMM exist in abandoned underground mines.  Potentiality of VAM resource also exist in gassy underground active mines. CBM/CMM/AMM/VAM

30. Thrust Areas  Resource modeling & assessment of CBM/CMM resources under de- stressed condition of coal seams  Formulation of Bankable project report for CBM / CMM / AMM exploitation  Commercial exploitation of CMM & AMM by application of superior technology of multi lateral horizontal in-seam drilling  Creation of suitable pipeline infrastructure for cost effective transportation of methane CBM,CMM,AMM

31. Energy from coal seams - Emerging Technologies Underground Coal Gasification

32. Depthwise & Qualitywise reserves of non-coking coal (as on 01.01.06) QualityProvedIndicated Total in Proved & Indicated Total <300m>300m<300m>300m<300m>300m Superior23.394.2518.6719.8241.0624.0765.13 Inferior44.047.6443.9724.2388.0131.87119.88 Total67.4311.8962.6444.05129.0755.94185.01 79.32106.69185.01 Quality-wise break up of 35.20 Bt.reserves ( 13.95 in 300m) in Inferredcategory is not available In Billion tonnes

33. Thrust areas  Specific study for delineation of suitable UCG blocks.  Taking up pilot scale studies in an collaborative regime for establishing techno-economics.  Separate bye laws, regulatory framework, fiscal incentive etc. are to be evolved  Creation of suitable pipeline infrastructure for cost effective transportation of Syn. Gas. Underground Coal Gasification

34. Mobilization of Coal Supply Issues on Sustainable Coal Supply

35. Continued expansion of resource base  Detailed exploration need be completed about two Plan periods before the year of achieving rated coal production from a block.  Exploration in CIL blocks for the production in 2016-17 will be mostly completed by 2006-07.  Explored allotted blocks can produce to match the coal requirement of XII Plan from captive blocks.  Proposed detailed drilling in XI plan will help in achieving coal production from XIII plan onwards.  Forest Clearance procedure for exploration needs to be suitably modified.  Present capacity of coal core analysis (about 30000 m/year) needs to be more than doubled to cater to the detailed exploration during XI Plan.

36. Issues on Sustainable Coal Supply  Underground mining Present production level of 62 mt proposed to be tripled by 2025 as per vision coal 2025. Necessary mine development works for above have to be started during XI plan itself Steps to be taken for faster liquidation of upper seams particularly in Raniganj & Jharia coalfields for introduction of LW in lower seams where geo-mining conditions are favourable Manual mining should be phased out by 2016-17 as bulk of conventional manual miners will retire by then Bord & Pillar operations with continuous miner will be the dominant mining technology by 2016-17 Need for increasing indigenous underground mining equipment (continuous miner etc.) manufacturing capability

37. Issues on Sustainable Coal Supply  Enhancement of Extractable Resource  Coal Evacuation Emphasis on transport through MGR Urgent augmentation of NK & Ib valley coalfields Rail Coal corridor, Slurry pipe line Riverine/sea transport Others ( Ropeways, Coal Road hauler etc.)  Land & Rehabilitation  Forest clearances Forest Zoning ‘Yes’ or ‘No’ Amendment of legislation Utilization of compensatory afforestation fund

38. Issues on Sustainable Coal Supply  Manpower Requirement Coal production in coming two decades is set to touch 1.5 billion tonnes Average age of engineers (in coal PSUs) is about 47 years It requires about 7 years to train & develop engineers Trained manpower will be required for  Conventional mining  Emerging technologies  Exploration

39. THANK YOU

40. Net Efficiency for Coal Fired Power Plant and CO 2 Emission RateType Net Efficiency % CO 2 Emission Rate % Status Pulverized Coal 30-35100Proven PC(USC)40-4293-95Proven PFBC42-4590Proven IGCC45-4685Developing IGFC Upto 50 75Developing

41. Tentative Extractable Coal Reserve Enhancing Extractable Resource Base  An exercise carried out (April, 2004) shows that of the total resources of 91.69 Bt in CIL, 30.03 Bt (32.7%) are extractable as on 1.1.02. The remaining reserves are blocked due to various constraints.  Broad assessment of the extractable reserve of the National Coal Inventory as on 1.1.2005 considering : Detailed exploration connotes a confidence level of 90% of the reserves established. A 70% confidence level to Indicated and 40% to Inferred resources.  A study by CMPDI (July, 2001) shows an average Reserve to Production (R:P) ratio as 4.7:1.

42. Sustainability of coal production- Opencast  Share of opencast operations was about 22 % in 1975 which has increased to 84 % in 2004-05 (320 Mt). By 2025, coal production from opencast operations of Coal India will reach a level of about 715 Mt, which can be sustained for next 15 years at that level with further exploration.  Current depth of opencast operations ranges from 70 meters to 120 m whereas the operations have now been planned up to 300 m.

43.  Underground coal production in India has remained stagnant for the last 25 years.For producing 124 mt of coal by 2025, the development work should start by 2006- 07.  Application of mass production technology has been envisaged for achieving the aforesaid level of production.Upper seams of Jharia and Raniganj Coalfield are required to be liquidated prior to adoption of mass production technology in lower virgin seams.  In future, for extracting deep-seated coal resource, underground mines need to be planned for at least 0.5 Mty and higher with appropriate technology mix viz. mechanised Board & Pillar, Powered Support Longwall (PSLW), Blasting Gallery, continuous miner. Sustainability of coal production- Underground

44. Contd.. SECTOR-WISE PROJECTED COAL DEMAND IN 2025 Scenario : 8 % GDP growth Power (utility) Power (captive) SteelCementBRK & Others Total demand Demand (Mt)804112105123 1267 Share on total demand (%) 63.468.848.289.71 100 CAGR (06-25)5.227.235.109.185.005.62 Scenario : 7 % GDP growth Power (utility) Power (captive) SteelCementBRK & Others Total demand Demand (Mt)71910297113 1161147 Share on total demand (%) 62.698.898.469.8510.11100 CAGR (06-25)4.566.694.648.654.665.04

45. Indicated & Inferred Resources within 300m in Major Coalfields (Non-coking coal) Coalfield In already explored blocks Already allocated Available for exploration Total Under expln./ proposed by CMPDI To be explored by allocatee Prioritised for expln. In areas constrained for mining Not amenable for independent OC mining Talcher0.351.861.391.381.4912.1018.58 IB Valley 0.670.270.261.230.426.299.14 Korba0.27--0.07-2.472.80 Hasdeo-Arand0.01-0.981.200.091.483.76 Auranga-0.100.950.520.02-1.59 Rajmahal0.40-2.802.662.650.318.82 Singrauli0.98-0.470.160.501.683.78 N.Karanpura0.75--1.08-1.603.43 Mand-Raigarh0.26-2.812.455.451.9412.91 Total3.672.239.6610.7610.6027.8864.82 (Billion tonnes) Note: Resources in other coalfields - 8.95 Bt

46. CONCLUSIONS ● Cost of washing is nullified due to reduction in washed coal requirement for the same capacity of power plant ● Using washed coal in conventional power plant and rejects in FBC / CFBC power plant will lead to increased generation of power from the same quantity of raw coal ● Specific CO 2 emission per unit of electricity generated will reduce by using washed coal

47. Fig. in Mt. PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25 * Gap in coking coal shall be bridged with middlings to be generated from beneficiation of coking & low volatile high rank coal. Domestic Production Total1086 Coking (Washed) 36 (18) Low volatile High rank (Washed) 13 (3) Non-Coking1012 Coal equivalent of CBM / UCG 25 Deamd at 7 % GDP Total1147 Coking97 Non-coking1050 Gap(-) / Surplus (+) at 7 % GDP Coking (-) 76 (57)* Non-coking (-) 13

48. Fig. in Mt. PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25 * Gap in coking coal shall be bridged with middlings to be generated from beneficiation of coking & low volatile high rank coal. Domestic Production Total1086 Coking (Washed) 36 (18) Low volatile High rank (Washed) 13 (3) Non-Coking1012 Coal equivalent of CBM / UCG 25 Deamd at 8 % GDP Total1267 Coking105 Non-coking1162 Gap(-) / Surplus (+) at 8 % GDP Coking (-) 84 (63)* Non-coking (-) 125

49. Clean Coal Technologies: During Combustion Following advanced combustion technologies are being employed/ under various stages of development to reduce emission of GHGs & increase thermal efficiencies:  Pressurized Fluidized Bed Combustion Combined Cycle (PFBC)  Integrated Coal Gasification Combined Cycle(IGCC)  Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)  Hydrogen Production from Coal with Carbon Dioxide Recovery(HyPr- RING)

50. OUTLOOK ON COAL   Coal is the key contributor to the Indian energy scenario. 55 % of the current total commercial energy needs are met by coal.   Coal has the largest domestic base and largest share of India's energy production amongst four major Indian fuel sources - oil, natural gas, coal and uranium.   A far smaller percentage of domestic coal demand is met by imports than for the other major fuels.   It is projected that by 2024-25, the share of coal in national energy scenario would come down marginally to about 50 % level.

51. Integrated Energy Policy - Issues  To bridge the gap between demand and supply encourage import which are also needed from a longer term perspective  Create needed infrastructure to facilitate coal import  Imported coal is far more cost competitive to imported gas for power generation along the western & southern coast  Domestic coal production should be stepped up by allotting coal blocks to PSUs as well as to notified end users  Coal blocks held by CIL, which will not be brought into production by 2016-17 be made available to other eligible candidates for bringing into production by 2011-12.  Coal Mines (Nationalisation) Act 1973 be amended to enable private participation for purposes other than those specified & offering of future coal blocks to potential entrepreneurs

52. Integrated Energy Policy - Issues  Enlarging coal resource base is important to meet coal requirement.  Deshaling, improved mining procedures and sizing of coal to be considered for bringing down the average ash content of Indian coal.  Full washing to reduce ash content further thereby saving transport cost and resulting in improved of power plants to be considered.  Independent regulatory body to regulate upstream allotment and exploitation of coal blocks to yield coal, CBM, mine mouth methane and for in-situ coal gasification to be created.

53. Integrated Energy Policy - Issues  Rationalise rail freight rates for coal transport. Gradually reduce cross subsidy surcharges imposed on freight traffic.  Alternate means for moving coal through coastal shipping, river/canal movement and coal slurry pipeline to be considered.  Infrastructure status to coal industry. Lower duties on capital goods imported for coal mines to make them uniform with such duties for other energy sub-sectors.  20% of total coal available should be sold through e-marketing.  Raise the domestic level of trading and marketing of coal by removing it from the list of essential commodities.  Amend the provisions of Contract Labour (Regulation & Abolition) Act, 1970 to facilitate off-loading activities in coal mining for improved economics of operation.

54. Integrated Energy Policy - Issues  Improved Governance is essential for dealing with malpractices and corruption like black marketing of coal, pilferages and illegal mining.  Coal projects are often delayed due to environmental regulations and delays in approval of EMPs. Simplification of procedures, preparation of comprehensive EMPs and demonstration of environmental responsibilities on the ground can help reduce such delays.  Reserve of compensatory afforestation built in advance should be accepted against specific project-wise commitments to reduce such delays

55. Production Projections Producing Company Projected Production (Mt) XII Plan (2016-17) XIV Plan (2025) OCUGTotalOCUGTotal CIL Total: (Incl. NE) 56880648658124782 Non-CIL Areas Unblocked Areas 5-557-57 Total CIL 57380653715124839 Coal Equivalent CBM- UCG --5--25 SCCL4547 Others: Captive TISCO/IISCO 75175 Grand Total (Domestic) 7781086

56. Production Projections Demand vis-a-vis Availability Domestic Production Total1086 Coking (Washed Coal) 36 (18) Low Volatile High Rank (Washed Coal) 13 (3) Non-Coking1012 Coal equiv.of CBM/UCG 25 Demand at 7% GDP Total1147 Coking97 Non-Coking1050 Gap (-) / Surplus(+) at 7% GDP Coking (-) 76 {57} Non-Coking (-) 13

57. Production Projections  The production projected as above is based on broad assessment, keeping in view various considerations like geo-mining, techno-economic and surface constraints, specific to different coalfields.  Large opencast mines would continue to play dominant role in country’s coal production in next 3 decades.  It is expected that coal production from opencast operation of CIL will peak at 715 Mty by 2025, in addition a production of 160 Mty is expected to come from the opencast- mines/blocks identified for allocation to captive users. SCCL will also contribute a production of 27 Mty from opencast mines by 2025

58. Production Projections  Private sector participation in coal through captive mining has been allowed by the Govt. since 1993.  17 Captive Blocks of tentative production capacity of 26.45 MTY were allocated till 2000. The production from these blocks which was 3.83 mt in 2000, has increased to 9.58 mt in 2005.  70 more captive blocks of potential production capacity of 172.55 mty have been allocated and are under allocation process between 2001 & 2005.

59. Development of Coalbed Methane and Underground Coal Gasification Coal Bed Methane  In 1997, a CBM policy was formulated and DGH was nominated as the nodal agency for management and promotion of CBM in the country. Two rounds of global competitive bidding have already been concluded where blocks were delineated by CMPDI at the instance of MoC and corresponding data package were also largely prepared by CMPDI.  A mine-related CBM demonstration project for Coal Bed Methane Recovery and Commercial Utilization aided by UNDP/Global Environment Facility (GEF) and Govt. of India as collaborators has been taken up.  A consortium of CIL and ONGC has been allotted two blocks for exploration and commercial exploitation of CBM located in Jharia and Raniganj coalfields. CMPDI is to implement this project on behalf of CIL. The project is under implementation.

60. Development of Coalbed Methane and Underground Coal Gasification Coal Mine Methane / Abandoned Mine Methane  Coal Mine Methane/Abandoned Mine Methane (CMM/AMM) have been considered as an important sub-set of CBM which relate to CBM produced before, during and after coal mining.  CIL has drawn a long term perspective for commercial recovery of CMM/AMM.  The perspective includes policy formulation and generation of base line data for evaluation of areas under mining, abandoned mines and future mining areas for delineation of viable CMM/AMM blocks for commercial recovery of CMM/AMM

61. Development of Coalbed Methane and Underground Coal Gasification CBM Data Generation During the course of initial assessment of CBM resources, it has been observed that there is lack of dedicated database in respect of desorption and adsorption character of coal for CBM potentiality assessment. In view of this, it was evolved in the National perspective that routine coal exploration through boreholes under Promotional funding by the Govt. may be used for incremental data generation in regard of CBM potentiality assessment. Accordingly, a scheme of assessment of CBM Gas-in-Place Resources of Indian coalfields during X Plan has been approved by the Govt. at an estimated cost of Rs.8 crores. The scheme is under implementation by CMPDI and the data in various coalfields are being generated

62. Development of Coalbed Methane and Underground Coal Gasification Underground Coal Gasification  In India, a large amount of coal exists beyond present techno-economically viable mining depth. They are falling within Proved to Indicated categories. Such coals have immense potential to yield energy through UCG. Besides, within mineable depth also, there are many small isolated patches of coal occurrence, which are presently not viable for mining and the same can be considered for underground coal conversion.  Additionally, there is a huge occurrence of lignite in India, which has not even brought into lignite resource inventory, but otherwise known in course of oil and gas exploration in the country. These lignite fields need proper exploration and may be taken up for UCG in addition to known lignite deposits, which could not be economically mined due to greater depth. Visualizing the opportunity, CIL Board has cleared a MoU with ONGC for pursuing UCG under collaborative regime on 50:50 cost sharing and is awaiting approval of Govt.

63. Conclusion Coal will remain the major primary source of commercial energy in the India owing to its large resource base. Coal will remain the major primary source of commercial energy in the India owing to its large resource base. Presently, the extractable coal reserves upto a depth range of 600m has been assessed as 52 billion tonnes. Presently, the extractable coal reserves upto a depth range of 600m has been assessed as 52 billion tonnes. Considering the average production level of 600-700 Mty with peak of the production reaching to the forecasted level of 2025, the country’s coal resources is expected to last for more than 60 years. By this time, new alternative source of energy will come into commercial operation Considering the average production level of 600-700 Mty with peak of the production reaching to the forecasted level of 2025, the country’s coal resources is expected to last for more than 60 years. By this time, new alternative source of energy will come into commercial operation Projected high growth rate in coal production is subject to removal of barriers Projected high growth rate in coal production is subject to removal of barriers There is a need to expand the coal resource base of the country by expediting coal exploration both regional and detailed. There is a need to expand the coal resource base of the country by expediting coal exploration both regional and detailed. Indian system of coal resource classification needs to be replaced by UNFC based classification system for better appreciation of the economy of coal resources of the country Indian system of coal resource classification needs to be replaced by UNFC based classification system for better appreciation of the economy of coal resources of the country

64. Production Projections Coal Production Projection Company Production in 2025 (Mt) Non-cokingCokingTotal CIL80930839 Non-CIL SCCL47-47 Captive & TISCO / IISCO 1696175 CBM-UCG25-25 Sub total Non-CIL 2416247 All India 1050361086

65. Issues on Coal Supply   Augmenting indigenous production from CIL, & SCCL Others (TISCO,IISCO etc.) Captive blocks CBM & UCG operations   Sustainability of coal production Opencast Underground

66. Issues on Coal Supply   Removal of infrastructural constraints Coal evacuation Land & rehabilitation Creating indigenous equipment manufacturing base   Review of Policy issues Forest Zoning/ EMP clearance Fiscal incentive for UCG & coal washing Lower import duty on mining equipment Creation of corpus fund for mine closure

67. Production Potential from allotted Captive blocks Captive Blocks (including TISCO, IISCO etc.): A. Production Requirement (Mt) 06-07 11-12 16-17 28.8 44.0 75.0 B. Blocks allotted: Fully Explored Regionally Explored Total Till 2003 No. 29 8 37 Reserve(Bt) 2.571.28 3.85 2004-06 No. 41 13 54 Reserve(Bt) 5.19 8.0 13.19 Total No. 70 21 91 Reserve(Bt) 7.76 9.28 17.04 1.Blocks allotted till 2003 have sufficient Proved reserves to attain 44 Mt production by 2011-12 2. Blocks allotted till date have sufficient Proved reserves to attain 200 Mt production by 2020

68. COAL BENEFICIATION

69. Indian Coals - Need for beneficiation  Unlike Western Coal, most of the Indian coals contain high percentage of inorganic impurities (due to Drift origin).  65% of non-coking coal belongs to high ash category (grade ‘E’ and below)  Ash content in ROM coking coal is around 26-35% against ash requirement for steel making 17+0.5  Contain high percentage of Near Gravity Materials (NGM)  Substantial reserves of High Ash (>34%) Non-coking coal in the country.  Deterioration in coal quality due to increased mechanization of mines  MOEF’s mandatory requirements  Varying customers’ needs & need for market retention  To reduce load on Railways Transportation system

70. Prospect Of Coal Beneficiation : 2011-12 Sl. No. Type of CoalProjected Productio n MTY Existing Washing Cap, MTY Capacity Addition required 1Coking Coal2631 Existing washeries to be Modernized/ Replaced 2Low Volatile High Rank (LVHR), i.e., high ash Coking coal 13Nil13 3Non-Coking Coal 3.1Superior Grade147 Need based 3.2Pit Head TPP linked low grade Coal (approx) 160 Need based 3.3Remaining Low Grade Coal (approx) 27590185

71. LEVEL OF WASHING Partial washing  For Non-coking coal : Require banding of UHV to narrow down the calorific ranges & subsequent pricing to reap the benefit of non- coking coal washing Full scale washing  For Coking coal

72. ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDY ● Raw coal characteristics of Talcher Coalfield Ash – 40.2% Ash – 40.2% GCV – 4074 Kcal/kg Price – Rs. 515 / Te (without sizing) Price – Rs. 515 / Te (without sizing) ● Washed coal at 34% ash Yield % - 80.8 Yield % - 80.8 GCV – 4439 Kcal/Kg GCV – 4439 Kcal/Kg Price – Rs 736 / te (excluding sales realisation of rejects), Rs 701 / te (including sales realisation of rejects @ Rs 150 / te) Price – Rs 736 / te (excluding sales realisation of rejects), Rs 701 / te (including sales realisation of rejects @ Rs 150 / te)

73. ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDY ● Price of 1000 Kcal in case of raw coal = 12.6 paisa ● Price of 1000 Kcal in case of washed coal (excluding sales realisation of rejects) = 13.3 paisa ● Price of 1000 Kcal in case of washed coal (including sales realisation of rejects) = 12.6 paisa Assumption : Requirement of washed coal in a thermal power plant is equivalent to 80% of raw coal requirement

74. PRESENT STATUS OF WASHING & FUTURE REQUIREMENT ● As per Coal Vision – 2025, production is projected as 1060 Mty out of which 874 Mty need to be washed ● Present washing capacities of all non-coking coal washeries ( inside CIL & outside) = 90 Mty ● 3 more washeries of 24 Mty combined capacity are under construction ● Likely quantity of rejects to be produced = 218 Mty to 260 Mty which will produce about 17000 Mw to 20000 Mw of power by FBC / CFBC technology

75. ENVIRONMENTAL IMPACT ● As per a Japanese estimate, for producing 2.17 million MWHr electricity i.e. for a 275 Mw Power Plant unit, reduction of 550,000 Te of CO 2 emission can be achieved by using washed coal (34% ASH) instead of 42% ash raw coal.

76. Washery Rejects : Present Scenario  Generation of Rejects in 2004-05 was 2.44 Mt from CIL washeries having  Coking Coal Washeries : 10 - 15 % of RC feed  Non-coking Coal Washeries : 15 - 20 % of RC feed  Washing capacity in non-CIL plants about 81 Mt :  Coking Coal : 11.27Mt  Non-Coking : 69.6 Mt  Percentage of Reject is likely to be the same as in CIL Washeries  Addl. non-coking Coal Beneficiation by 2011-12( Anticipated ) : 185 Mty Approx.

77. Washery Rejects : Present Scenario  Disposal of Rejects in an environment friendly manner posing problem  7 units of 10 MW has been installed at five locations for utilising coking coal washery rejects for ash % ranging from 55 to 72 in BCCL and CCL.

78. Thrust Area : Reject Utilization  To establish an Efficient cost-effective technique for power generation from Washery rejects  Ash generated from the power plant will be disposed as a back-fill material in the Opencast Mines.  The Power Plants to envisage post combustion emission control technologies e.g. CO 2 control / sequestration etc.