CEE Jan-Mar 2012

mmmg company, largest in the world . Even the lowest grade is placed in the bandwidth of 840 kcal , fetching a high price. The power sector, which consumes 75 per cent of domestic coal, has been making huge gai ns by purchasing coal graded under UHV. Indian coal has high ash content and most of it falls between Grade E and Grade G. Under the UHV structure, coal is graded into seven groups (see 'Coal grades'). Government provided handsome rebates on high ash coal because it wanted power companies to purchase Indian coal. The boil ers used to burn high ash coal consumed a lot of energy. "Modern pulverised boilers can burn high ash coal with almost 99 per cent efficiency. Therefore, the rebate needs to be reconsidered," says Sen. CIL officials say calorifi c value, not ash content, should decide the pricing of coal. At present , the average price of coal is 30 to 60 per cent lower than the international price, says Shah. Sudden shift to the globally accepted GCV will severely hit the power sector. We are, therefore, adopting it in phases, he adds. The power sector argues that companies which depend solely on domestic coal will be hit hard. "With decreased mining, supply of coal is also dwindling. Increase in prices will make it difficult to maintain costs. The rebate should continue," says a National Thermal Power Corporation official in New Delhi. Delayed too long India is major coal which does GCV. Power opposed the years. the only producer not follow sector has switch for The 1997 Ash Content Notification of the Ministry of Environment and Forests required use of coal with ash content not exceeding 34 per cent. This was to be adopted by June 2002. In August 2001 , a parliamentary standing committee on energy recommended that quality of coal can be improved by standardising it. But each time, the power sector opposed it. To ensure availability of better quality coal through reduction of ash content, Pratik Prakashbapu Patil , Minister of State for Coal, recently announced setting up of 20 more washeries. At present, CIL operates 17 washeries-11 for coking coal and the rest for non-coking coal. Their combined annual washing capacity is 39.40 million tonnes. The ministry's plan will increase the washing capacity by 111 million tonnes. Courtesy: Down to Earth, January 1-15, 2012, P12 NEW COAL PRICING SYSTEM MAY BE SUSPENDED The ministry of power has asked coal ministry to suspend the new coal pricing system based on gross calorific value (GCV), introduced by the state– owned monopoly Coal India from January 1, sayi ng it will 34