How does coal mine help in the economic development of india? Write in Five points.
Answers
Coal mining in India began in 1774 when John Sumner and Suetonius Grant Heatly of the East India Company commenced commercial exploitation in the Raniganj Coalfield along the Western bank of Damodar river. Growth remained slow for nearly a century due to low demand. The introduction of steam locomotives in 1853 boosted demand, and coal production rose to an annual average of 1 million metric tons (1.1 million short tons). India produced 6.12 million metric tons (6.75 million short tons) of coal per year by 1900 and 18 million metric tons (20 million short tons) per year by 1920. Coal production rose steadily over the next few decades, and was boosted by demand caused by World War I. Production slumped in the interwar period, but rose to 30 million metric tons (33 million short tons) by 1946 largely as a result of World War II.
In the regions of British India known as Bengal, Bihar and Odisha, the Indians pioneered Indian involvement in coal mining from 1894. They broke the previous monopolies held by British and other Europeans, establishing many collieries. Seth Khora Ramji Chawda of Sinugra was the first Indian to break the British monopoly in the Jharia Coalfields. Other Indian communities followed the example of the Kshatriyas in the Dhanbad-Jharia-Bokaro fields after the 1930s. These included the Punjabis, Kutchis, Marwaris, Gujaratis, Sindhis and Hindustanis. Following independence, the Government of India introduced several 5-year development plans. Annual production rose to 33 million metric tons (36 million short tons) at the beginning of the First Five Year Plan. The National Coal Development Corporation (NCDC) was established in 1956 with the aim of increasing coal production efficiently by systematic and scientific development of the coal industry.
The Indira Gandhi administration nationalized coal mining in phases - coking coal mines in 1971-72 and non-coking coal mines in 1973. With the enactment of the Coal Mines (Nationalization) Act, 1973, all coal mines in India were nationalized on 1 May 1973. This policy was reversed by the Narendra Modi administration four decades later. In March 2015, the government permitted private companies to mine coal for use in their own cement, steel, power or aluminium plants. The Coking Coal Mines (Nationalization) Act, 1972 and the Coal Mines (Nationalization) Act, 1973 were repealed on 8 January 2018. In the final step toward denationalization, on 20 February 2018, the government permitted private firms to enter the commercial coal mining industry. Under the new policy, mines will be auctioned to the firm offering the highest per tonne price. The move broke the monopoly over commercial mining that state-owned Coal India has enjoyed since nationalisation in 1973.
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Explanation:
India is the third-largest producer of coal in the world. However, the country’s domestic consumption is large and as a result, India net imports coal to meet the needs of power companies, steel mills and cement producers. Furthermore, non-coking coal reserves make up about 85 percent while coking coal reserves are the remaining 15 percent.
India’s coal demand is expected to increase multifold within the next five to 10 years, due to the completion of ongoing power projects, and demand from metallurgical and other industries.
Government-controlled Coal India Limited (CIL) dominates the domestic coal supply market with an 80 percent market share, although some industrial consumers, typically in the power and steel sectors, have access to captive mines.
CIL’s non-coking coal production has grown by 3.7 percent annually between 2007 and 2011, below the rate of coal-fired capacity additions (7.2 percent annually over the same period). Its production target for 2012 is 452 million metric tons, only marginally up from 431 million tons recorded in the 2011 fiscal year.
Despite all this, the Indian coal ministry projects a coal supply shortfall of up to 142 million tons in 2012.