India's coal mines are severely under-utilized

With only two-thirds of current capacity utilized, the Global Energy Monitor (GEM) report calls new coal projects under development ‘unnecessary’.

Key points made in the Report:

• 99 of India’s coal mine projects, under development, are
• Opening new coal mines wouldn’t be easing short-term supply crunch.
• Coal mines under development threaten to displace at least 165 villages' families.
• About 50% of the families live in areas where the predominant population is tribal communities.
• Coal mines under development also threaten 22,686 hectares (ha) of agricultural land and 19,297 ha of forest.
• The project is expected to consume at least 168,041 kiloliters per day, comparable to the daily water needs of over one million people.

Global Energy Monitor (GEM): It is a San Francisco-based non-governmental organization that catalogs fossil fuel and renewable energy projects worldwide.

These new mines will result in:

• An increase in India’s likelihood of stranded assets
• Delay a clean energy future
• Pose irreversible impacts on India’s rural communities and environments
• Not in sync with the net zero targets of 2070
• Conflicting challenges from renewable sectors

State of India’s coal sector:

• India’s 427 MTPA of planned new coal mine capacity is second in the world after China with 596 MTPA.
• In Jharkhand and Odisha, the industry has over 100 million tonnes in unused capacity at active mining sites, amounting to over 40% of unused mine capacity in those States.

Coal supply-crunches:

• Last year India experienced severe coal crisis coal stocks falling below the critical mark of 25% of the required stock.
• It had led to power shortages in several States, including Andhra Pradesh, Jharkhand, Uttarakhand, and Madhya Pradesh.

Reasons for coal shortage in recent times:

• Available coal cannot reach on time due to container shortages because of high imports and exports.
• Rising industrial demand, and global price swings.
• Resumed operations following the second wave of the COVID-19 epidemic, can be blamed for the unexpected increase in demand, resulting in a short supply of coal.
• Russia’s invasion of Ukraine had a significant impact on India’s coal imports.