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More than Government Directive Needed to Ease Coal Supply Shortage to Power Generators in India
GlobalData, April 2012, Pages: 6
More than Government Directive Needed to Ease Coal Supply Shortage to Power Generators in India
Summary
The shortage of coal supplies in the Indian power sector is unlikely to see any improvement through the government instructing Coal India Limited (CIL) to sign fuel supply agreements with power generators. The country’s largest state-run supplier has signed contracts with utilities and agreed to supply at least 80% of their coal requirement. CIL will have to pay a penalty of 0.01% of the value of shortfall in supplies if it falls behind the schedule. Though the company will sign fuel supply agreements immediately, the penalties will only be applicable after three years. The power generators hoped that the government directive would push CIL to boost their output immediately to ease the current coal supply shortage, but with this delay in penalty application, the power industry will have to implement various mitigation strategies in order to ease the short-term coal supply shortage. The power industry also needs to reduce its high dependency on coal by developing strategies for increasing the use of alternative energy sources in the longer term, leading to enhanced energy security.
Scope
- Market prospects of coal-fired power with the growing problem of coal supply shortage in India
- Supply bottlenecks preventing Government's directive to ease the short-term coal supply shortage
- Strategies for Improving the Supply of Coal Resources in India
- Strategies for Increasing the Share of Other Clean Power Generation Resources
Reasons to buy
- Identifying the key growth and investment opportunities with the growing supply shortage of coal resources in India
- Gain insights on the coal supply shortage and its impact on the Indian power sector
- Developing strategies for a sustainable growth of the Indian power sector
- Facilitate decision-making based on upcoming industry developments to reduce the reliance on coal resources
1
1
1.1 List of Tables
2 Summary
3 More than Government Directive Needed to Ease the Coal Supply Shortage to Power Generators in India
3.1 Bottlenecks will Prevent the Government’s Directive to Ease Short-term Coal Supply Shortage
3.1.1 Coal India’s near Monopolistic Position Impedes Development of Coal Mining Sector
3.1.2 Difficult Environmental and Land Acquisition Clearances Preventing Coal Mine Developments
3.1.3 High International Prices Challenge Coal Imports
3.2 Applying Mitigation Strategies can Ease the Coal Supply Shortage to Power Generators in India
3.2.1 Introducing Competition in the Domestic Coal Sector will Remove State Monopoly
3.2.2 Improving Coal Transportation Infrastructure will Remove Supply Bottlenecks
3.2.3 Improving Plant Efficiencies will Increase Fuel Utilization
3.2.4 Developing Coal Bed Methane will Lead to Increased Productivity
3.3 To Deal with Coal Supply Shortage, the Indian Power Industry Needs to Reduce its High Coal Dependency
3.3.1 Increasing Regulatory Support to Push the Use of Alternative Energy Resources
3.3.2 Development of Nuclear Power Will Result in Enhanced Energy Security
3.3.3 Increased Gas Capacity Utilization will Lead to Reduced Pollution from Coal Dominated Power Industry
4 Appendix
4.1 Abbreviations
4.2 Sources
4.3 Methodology
4.3.1 Coverage
4.3.2 Secondary Research
4.3.3 Primary Research
4.3.4 Modeling and Forecasting
4.4 Contact Us
4.5 Disclaimer
1.1 List of Tables
Table 1: List of Government Authorities and Agencies Granting Approvals to Coal Blocks, India
Table 2: Coal Bed Methane Reserves, India, 2010
Table 3: Abbreviations
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