COAL IMPORTS - ECONOMY

News: Coal imports rose 30% in FY23 to 162mt on demand

 

What's in the news?

       India's coal imports increased by 30% to 162.46 million tonnes in the 2022-23 financial year against 124.99 MT in the year-ago period, according to a report.

 

Key takeaways:

       The import of coking coal rose 5.44% to 54.46 MT over 51.65 MT in FY22, said in its latest report.

       India is among the top five coal-producing countries in the world. However, some parts of its coal requirement are met through imports as the country is also among the major consumers of the dry fuel.

       For coking coal — a key raw material used in steel making — the country remains heavily dependent on imports.

 

Coal:

       Coal is a combustible black sedimentary rock, formed as rock strata called coal seams.

       Coal is mostly carbon with variable amounts of other elements - chiefly hydrogen, sulphur, oxygen, and nitrogen.

       Coal supplies about a quarter of the world’s primary energy and two-fifths of its electricity.

       India has the fifth largest coal reserves in the world.

       India is the second largest producer of coal in the world, after China.

 

Coal Imports - Stats:

  1. Indonesia – 49%
  2. Australia- 20%
  3. South Africa- 16%
  4. USA- 5%
  5. Russia- 3%

 

Go back to basics:

Types of Coal:

Anthracite:

       It is the best quality coal.

       It contains about 80 to 90 percent carbon.

       It is hard coal.

       In India, it is mainly found in the district of Reasi in the state of Jammu and Kashmir.

       It has very low moisture content and ignites slowly and burns with a nice short blue flame.

 

Bituminous:

       It is the most widely available and used coal.

       It contains about 40 to 75 percent carbon.

       Its calorific value is very high due to the high proportion of carbon and low moisture.

       It is used in the production of coke and gas.

       It is soft, dense, compact, and is usually of black color.

       Moisture and volatile content is around 15 to 40 %.

 

Lignite:

       Lignite, referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat.

       It has a carbon content of around 25–35% and is considered the lowest rank of coal due to its relatively low heat content.

       Lignite is mined all around the world and is used almost exclusively as a fuel for steam-electric power generation.

       The combustion of lignite produces less heat for the amount of carbon dioxide and sulfur released than other ranks of coal.

 

Peat:

       It is the middle stage in the process of coal formation.

       It contains less than 40 percent carbon. It has more impurities.

       The parts of the wood are remarkably present in it.

       It contains lots of moisture and volatile material.

       It emits more smoke and leaves a lot of ash.