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IEAPER/37

Coal Prospects in India

AUTHOR: Lee B. Clarke, Simon Walker, Olivier Montfort
DATE: October 1997
PAGES: 52

ABSTRACT:
This report considers the prospects for coal production, supply and use in India. Coal is the primary energy source for power production in India, generating approximately 70% of total domestic electricity. Energy deman in India is expected to soar over the next 10 - 15 years.

Although new oil and gas plants are planned, coal is expected to remain the dominant fuel for power generation. Despite significant increases in total installed capacity during the last decade, the gap between electricity supply and demand continues to increase.

The resulting shortfall has had a negative impact on industrial output and economic growth. Indian coal is typically of poor quality. However, to meet expected future demand, indigenous coal production will need to be greatly expanded. Production currently stands at around 290 Mt per year, but coal demand is expected to more than double by 2010. Coal imports will also need to increase dramatically to satisfy industrial and power generation requirements.