Nlc

Over View of India’s Coal Sector

COAL AND LIGNITE RESERVES IN INDIA

Ministry of Coal• Responsibility  of  determining  policies  and 

strategies   in  respect of exploration  and  development of coal and   lignite reserves,  sanctioning of important projects of  high  value and for deciding  all related issues. 

• The Public Sector Undertakings, namely, Coal India Ltd.   and  its subsidiaries and Neyveli Lignite corporation Limited are under the Administrative   control  of  the  Ministry, of coal

• The ministry of coal also has a joint venture with  Government of Andhra Pradesh  called Singareni Collieries Company Limited. Government of Andhra Pradesh holds 51% equity and Government of India holds 49 % equity.

Trends in India’s Primary Energy Supply

• The primary energy supply has increased from about 117 Mtoe in 1960-61 to 604 Mtoe in 2008-09

• Correspondingly commercial energy supply has increased from about 43 Mtoe to 445 Mtoe during this period

• As per the Integrated Energy Policy Committee Report the projected primary energy supply requirement in 2031-32 ranges from 1660 to 2100Mtoe

• Of the projected demand share of coal is in the range of 51-62%

Primary Energy Supply – India - 2008-09

• Primary Commercial Energy - 445.45 Mtoe– Coal 55%– Oil 33%– Gas 9%– Nuclear 1%– Hydro 2%• Primary Non-commercial Energy -

158.98 Mtoe

• Total Primary Energy Supply- 604.43 Mtoe

Per Capita Energy Consumption

• India’s per capita energy consumption at 530 Kgoe is one of the lowest compared to world average of 1820 Kgoe

• Similarly, per capita power consumption at 543 Kwh is one of the lowest compared to world average of 2752 kwh

Challenges in Energy Supply

• Nearly 600 million population do not have access to electricity

• About 700 million use biomass as their primary energy resource for cooking

• About 30% population is below poverty line

• Ensuring life line supply of clean energy is essential

• To overcome poverty, India’s GDP needs to grow at over 9% for which energy is the critical input

Challenges in Energy Supply (contd.)

• India’s energy supply comes from different sources, coal, hydro power, oil & gas, nuclear and various forms of non conventional energy

• Broadly Oil & gas resources are concentrated in western region; coal in eastern region; hydro resources in north & north eastern regions and lignite in southern region

• Our energy strategy aims at utilising all available domestic energy resources to the optimal output in a competitive manner to ensure that total energy requirements are met in a least cost manner

Reliance on Coal

• About 55% of primary commercial energy and 70% of power generation are coal based

• The trend is likely to continue even beyond 2031-32

• This is basically due to abundantly available domestic coal resources and competitive price which provide security

• Production augmentation includes taking up new projects by National coal companies and development of captive mines through which number of players have been increased

• In addition, coal supplies are being secured through acquiring coal properties abroad

Policy changes since Nationalisation

• Coal industry was Nationalised in early 1970s• Coal Production increased from about 78 Mt at the

time of Nationalisation to 540 Mt in 2011-2012• Coal Mines Nationalisation Act 1973 was amended

permitting private sector in coal mining limited to captive purposes

• 208? blocks with around 50 bt reserves have been allotted to both public and private companies

• Presently allocation of coal & lignite blocks is through competitive bidding

• Group captive mining encouraged• 100% FDI permitted in captive mining

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Policy changes since Nationalisation

• Coal was put on open general license & Import duty on coal tapered off

• Coal price and distribution de controlled • New Coal distribution policy adopted &

10% of coal being offered through E-auction

• Fuel supply agreements made mandatory

• Project Approval procedures streamlined• Performing coal companies extended

enhanced delegation of powers with more autonomy (maharatna/navratna/miniratna status) 11

Policy changes since Nationalisation

• Exploration activities enhanced • Private block holders permitted to

take up exploration as per MoC’s guidelines

• Emphasis laid on promotion of clean coal technologies

• Policy for CBM put in place • Emphasis laid on coal washing, UCG,

Surface coal gasification, CTL etc.• Guidelines for UCG published

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Policy changes since Nationalisation

• Guidelines for mine closure issued• Stringent environmental laws to be complied

with by coal industry• National R&R policy put in place and

emphasis laid on equity and inclusive growth• Acquisition of coal properties abroad

permitted from energy security point of view• Outsourcing of operations being encouraged

from economic and efficiency enhancement points of view

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Policy changes since Nationalisation

• State of the art technologies being promoted

• Regulatory mechanism for coal under process

• Large scale imports encouraged in view of emerging gap between demand & domestic availability

• Infrastructure for coal imports and movement being strengthened

• 10% of Coal India’s and 6.4% of NLC’s stakes disinvested 14

Policy changes since Nationalisation

• E-procurement of goods & services being adopted & ERP systems being implemented

• Safety & Health of miners is of paramount importance

• Risk assessment & management being adopted for self regulation from safety angle

• Internal safety organizations strengthened• A major project to address the issue of Mine

Fires, Subsidence & Rehabilitation in Jharia & Raniganj Coalfields taken up

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05.06.2012 16

Captive Mining – Legal Frame workCaptive Mining – Legal Frame work• Under Coal Mines (Nationalisation) Act 1973, Coal Mining is Under Coal Mines (Nationalisation) Act 1973, Coal Mining is

exclusively reserved for Public Sector.exclusively reserved for Public Sector.

• An amendment to the Act in 1976? - permitted captive mining An amendment to the Act in 1976? - permitted captive mining by private companies for production of iron & steel.by private companies for production of iron & steel.

• Amendment to the Act in 1993 - allowed captive mining for Amendment to the Act in 1993 - allowed captive mining for generation of power, washing of coal & other end uses to be generation of power, washing of coal & other end uses to be notified by Government from time to time. notified by Government from time to time.

• Mining of coal for captive use for production of cement - Mining of coal for captive use for production of cement - permitted in 1996.permitted in 1996.

• Production of syn-gas obtained through coal gasification Production of syn-gas obtained through coal gasification (underground and surface) and coal liquification - notified as (underground and surface) and coal liquification - notified as end use for coal mining in July 2007.end use for coal mining in July 2007.

Geological Resources of Coal as on 01-04-2012

(in Billion Tonnes)

Type of Coal

Proved Indicated Inferred Total

Prime Coking

17.93 13.65 2.01 33.69

(11.5%)Non-Coking

100.21 128.52 31.17 259.80

(88.5%)Total 118.14 142.17 33.18 293.49

% 40.25% 48.44% 11.31% 100%

Plan-wise Coal ProductionFive Year Plan

Period Terminal Year Coal Production

(million tonnes) %CAGR*

First Plan 1955-56 38.30 Second Plan 1960-61 55.67 7.76

Third Plan 1965-66 67.80 4.02

Fourth Plan 1973-74 78.20 1.79

Fifth Plan 1978-79 102.02 5.46 Sixth Plan 1984-85 147.41 7.86

Seventh Plan 1989-90 200.89 6.38 Eighth Plan 1996-97 289.32 5.34

Ninth Plan 2001-02 327.79 2.52

Tenth plan 2006-07 430.83 5.62

Eleventh plan 2011-12 539.94 4.62 * Note: The % CAGR over the last 55 years i.e. 1955-56 to 2011-12 works out to 4.93%

Trend in Demand/off-take of coal (million tonnes)

Sector

Five Year Plan Period (Terminal year)

IX Plan(2001-02)

X Plan(2006-07)

XI Plan(2011-12)

RE

XII Plan(2016-17)

Projn.

XIII Plan(2021-22)

Projn.

IEP(2031-32)

Projn.

Steel 28.48 35.17 43.20 67.20 105.00

Power (U) 248.80 307.92 415.00 682.08 938.00*1659

Power (C) 17.02 28.13 42.94 56.36 79.00

Cement 15.25 19.74 28.00 47.31 78.00

Others 42.16 72.91 120.73 127.55 173.00

Coal Offtake/Demand

351.71 463.87 649.87 980.50 1373.00 2343

%CAGR 3.51 5.69 6.97 8.57 6.96 5.48

Coal Production Programme for XII Plan(million tonnes)

Company 2012-13 2013-14 2014-15 2015-16 2016-17 2016-17

BE Proj. Proj. Proj. Proj. BAU Proj. OPT

CIL 464.10 485.65 507.75 530.30 556.40 615.00

SCCL 53.10 54.30 55.00 56.00 57.00 57.00

Captive 39.20 46.80 53.25 66.20 79.60 100.00

Others 18.00 18.25 19.00 20.50 22.00 23.00

Total 574.40 605.00 635.00 673.00 715.00 795.00

Coal Characterisitcs

AIR DRIED FIELD

PARAMETER RANIGANJ JHARIA TALCHER RAJMAHAL

MOISTURE (%) 0.60-11.20 0.60-2.70 2.90-9.60 4.50-12.40

ASH (%) 8.80-47.00 9.80-34.00 6.80-48.40 10.00-45.00

VOLATILE MATTER (%)

11.50-39.20 10.20-31.40 22.70-38.60 21.90-34.40

GCV (Cal/g) 4050-7190 5205-7640 3170-6750 3440-5670

NITROGEN % 0.90-2.10 1.10-2.10 0.90-1.70 0.70-1.40

SULPHUR (%) 0.20-1.10 0.30-1.10 0.30-0.90 0.20-0.80

SiO2 (%) 47.80-70.00 41.62-46.20 55.37-68.29 54.80-63.60

Al2O3 (%) 21.40-28.60 18.40-25.77 20.15-30.76 26.10-27.20

Fe2O3 (%) 3.20-10.90 8.54-10.22 3.22-13.60 2.20-10.60

NEED FOR WASHING

• The most common and undesirable matter in coal is the noncombustible inorganic material which does not burn with coal and is termed as ash.

• The percentage of ash in coal may get as high as 55% or even higher. Some extraneous material (inseam bands /partings) also gets mixed with coal during its mining, subsequent handling and transport.

• All industries viz. power, steel, sponge iron, cement etc. that use coal, specify a range of quality requirements for their intended purpose

• Coal beneficiation or washing is a process (with or without use of water) of mechanical separation of impurities (ash) from coal, making it suitable for particular use.

WASHERIES IN CILCoking Coal

•Raw Coking Coal feed for 7.03 Mty target is 15.5 Mt (approx.)

Non Coking Coal

•Raw Non-Coking Coal feed for 36.30 Mty target is 52 Mt (approx.)

Company/ No. of washeries

Capacity Washed coking coal production (Mt)2011-12 (Target)

Despatch

CIL ( 12) 22.18 3.89

SAIL & TISCO (5) 7.70 3.14

TOTAL 29.88 7.03 6.54

Company/ No. of washeries

Capacity Washed Non-coking coal production (Mt) 2011-12 (Target)

Despatch

CIL ( 5) 17.22 11.30  

OTHERS 78.74 25.00  TOTAL 95.96 36.30 13.92

Production of Washed Coal in 2011-12(in ‘000 tonnes)

Type of Coal Company Raw Coal Feed Washed Coal Yield (%)

Coking Coal

CIL 6575 2892 43.98

SAIL 634.2 334.7 52.78

Private 6617.4 2846.8 43.02

Total 13826.6 6073.5 43.93

Non-Coking Coal

CIL 12842 11443 89.11

Private 30766.1 21165.2 68.79

Total 43608.1 32608.2 74.78

Non-coking coal private washery figure is not exhaustive , the data consists of only reported figures.

Despatch of Washed Coal in last 3 Years(Million Tonnes)

Year Washed Coal (Coking)

Washed Coal (Non-Coking) Middlings

(Coking)Middlings

(Non-Coking)

2009-10 6.518 13.981 4.711 3.726

2010-11 6.854 14.537 4.504 3.790

2011-12 6.544 13.921 5.545 3.545

All the figures of Washed coal & Middlings relate to coal companies (Private & Public). Private washeries are not included here.

ISSUES CONCERNING COKING COAL WASHING

• Lower Operating Efficiency of Old Coal Washeries• Problems in Beneficiation of Fines • Recovery of blocked Coking Coal Reserves• Washing of Non Linked Washery Coking Coal• Revised Grading of Coking Coal

ISSUES CONCERNING WASHING OF NON COKING COAL

• Transport of high ash coal• Ensure minimum loss of carbon or heat value in rejects.• Utilizing the rejects • Possibility of deep washing• Grading system for Non-coking coals of GCV up to 1300 K cal/kg

COAL AVAILABLE FROM CIL FORPOWER UTILITY SECTOR IN XII PLAN

Particulars 2012-13 2013-14 2014-15 2015-16 2016-17

Coal Available for supply to Power Utilities PUs

337.69 358.88 397.67 437.05 473.50

Requirement for Power Utility Sector as per Government directive

365.74 417.15 453.95 478.45 478.45

%age Materialization 92.34 86.02 87.60 91.35 98.97

Lignite Reserves in Million Tonnes as on 01.04.2012

T.N & Pondy 34295 (81%)

Rajasthan 4907 (12%)

Gujarat 2722 (7%)

J&K 28

Kerala 10

West Bengal 1

Total 41963 (100%)

LIGNITE RESERVES IN INDIA

1

34295 10

2722

4907

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1

NLC – A PROFILE

NLC established in 1956, is a Schedule-A, Navratna PSU having more than 17500 employees.

At present operates three opencast lignite mines at Neyveli (28.5 MT ) and one mine at Barsingsar, Rajasthan ( 2.1 MT).

Meets the fuel needs of three Thermal Power Plants (2490 MW) & an independent power producer M/s.STCMS at Neyveli and one Thermal Power Plant at Barsingsar (250 MW).

Power generating capacity has raised to 2740 MW.

NLC – A PROFILE (contd….)

NLC is the largest opencast lignite mining company and the

largest power producer using lignite as fuel in India.

NLC is a financially sound company with the following ratings :-

CRISIL “AAA” (stable)ICRA “LAAA”

All the three mines and power plants at Neyveli are ISO certified for quality management system, environmental management system and occupational health and safety management system.

NLC allocates not less than 1% of profit after tax per year as financial commitment towards CSR activities.

Corporate Governance:- NLC adheres to highest standards of Corporate Governance in transparency, accountability and integrity.

OPERATING UNITS OF THE COMPANY

FOUR LIGNITE MINES

30.6 Million Tonnes / Annum

FOURTHERMAL POWER STATIONS

2740 Mega Watt

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NLC’s OPERATION IN THE COUNTRY

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Neyveli Mines (28.5) MTPA & Power (2490MW)

Barsingsar Mines (2.1 ) MTPA & Power (250MW

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MINE-I LINKED TO TPS-I & TPS-I EXPNMine-I:

Capacity- 10.5 Million Tonnes per annum

Commenced in May 1962

Continuous mining technology with Bucket Wheel Excavators Conveyors and Spreaders.

TPS-I:

Capacity - 600 MW. (6 X 50 & 3 X 100)

First unit commissioned in May 1962 and Last Unit in September 1970.

Life Extension Programme (LEP) taken up between April 1992 and March 1999, thus the life of the Units extended for another 15 years.

TPS-I Expn:

Capacity - 420 MW

First unit synchronised in October 2002 and second unit in July 2003

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MINE-II LINKED TO TPS-II & TPS-II EXPNMine-II:

Capacity- 15.0 Million Tonnes per annum

Commenced in March 1985

10.5 Million Tonnes of Lignite per annum increased to 15.0 Million Tonnes in March 2010

Continuous mining technology with Bucket Wheel Excavators Conveyors and Spreaders.

TPS-II:

Capacity - 1470 MW. (7 X 210)

First unit commissioned in March 1986 and Last Unit in June 1993. I stage - 3 units of 210 MW

II stage - 4 units of 210 MW TPS-II Expn:

Capacity - 500 MW (2 X 250)

Unit-I Synchronised on 18.05.2011

Unit-II Under construction.

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MINE-IA FOR IPP & LIGNITE SALES

Mine-IA:

Capacity- 3.0 Million Tonnes per annum meets the fuel requirement of M/S. ST-CMS an IPP, Commenced in March 2003.

Raw lignite requirements of other industries.

Continuous mining technology with Bucket Wheel Excavators Conveyors and Spreaders.

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BARSINGSAR MINE LINKED TO BARSINGSAR TPS

Barsingsar Mine:Capacity- 2.1 Million Tonnes per annum

Mine attained rated capacity on 31st January 2010Mining operations outsourcedUsing conventional mining equipments

Barsingsar TPS:Capacity- 250 MW (2 X 125) First Unit – Commissioned in January 2012Second unit – Commissioned in December 2011

XII Five year Plan NLC’s Investment Plans

During the XII Five Year Plan ( 2012-17) NLC Plans invest Rs 31191.51 crore to add capacity of 6 MTPA of Lignite mining capacity and 2885 MW of Power generation capacity

Funding Rs Millions

Rs in Millions

Lignite Sector 25107.00

Power sector 267284.00

Total 292391.00

Plan Outlay

XII Five year Plan NLC’s Investment Plans (Cont.)

XI Plan Terminal Year (2011-12)

Addition inXII Plan

(2012-17)

XII PlanTerminal Year

(2016-17)

Lignite (MTPA)      

Mine I 10.50 (2.50) 8.00

Mine IA 3.00 4.00 7.00

Mine II 15.00 - 15.00

Barsingsar 2.10 - 2.10

Hadla Mines   1.90 1.90

Palana Mine   0.60 0.60

Devangudi Mine

  2.00 2.00

Total (MTPA) 30.60 6.00 36.60

Capacity addition in Lignite Sector ( MT)

XI Plan Terminal

Year (2011-12)

Addition in

XII Plan(2012-17)

XII PlanTerminal Year

(2016-17)

       Power (MW)      

TPS I 600 - 600

TPS I Expansion 420 - 420TPS II 1470 - 1470TPS II Expansion   500 500Barsingsar TPS 250 - 250Barsingsar Expn   250 250

NNTPS   1000 500NTPL (Coal)   1000 1000UP TPS (Coal)   660 660Solar Power   25 25Wind Energy   50 50

Total (MW) 2740 2885 5725

Capacity additions in Power sector in MW

Neyveli Lignite Analysis

Proximate 

Parameter Unit Min Max

Moisture  in % 46 56

Ash  in % 2 12

Volatile matter  in % 24 26

Fixed carbon  in % 18 24

Gcv cal/gm 2600 2900

Net.Gcv Kcal/kg 2200 2500

BD gm/cc 1.01 1.2

Ultimate 

Parameter Unit Min Max

Moisture in % 46 56

Ash in %  2 12

Carbon in % 27 31

Hydrogen in %  2.2 2.5

Nitrogen in %  0.2 0.4

Sulphur in % 0.5 1

Oxygen in %  12 14

Lignite Ash CharacteristicsChemical Analysis of Lignite

Ash (in %) 

Parameter Min Max

SiO2 5 40

Al2O3 10 40

Fe2O3 2 16

CaO 10 30

MgO 2 10

Na2 O 0.5 2.5

K2 O 0.02 0.14

SO3 5 40

Fusion Charecteristics of Lignite Ash

Range (in Deg. C)

Intial deformation Temperature 1250 1400

Hemi Spherical Temperature 1280 >1400

Flow Temperature 1300 >1400

Parameter Range

Hardgrove Grindability Index

  105 140

Incubation period (in weeks) 6 8

NLC’s collaboration with Japan

• Study on upgradation of NLC’s lignite with M/s. Kobe Steel of Japan.

• Study on upgradation of Brown coal using waste heat from flue gas with M/s. UBE Industries, Japan.

● Benefits of UBC: Calorific value of the UBC product increases. Prevention of spontaneous combustion. Long distance transportable. Reduction in auxiliary energy consumption in boilers. Reduction of CO2 emission.

Upgradation of Brown Coal process of Neyveli Lignite M/S KSL, Japan

● UBC process involves removal of moisture from lignite to upgrade it into a higher calorific value product .

● The plant consists of a crushing mill, slurry making, slurry de watering, oil recovery, briquetting and product yard.

● METI (Ministry of Economic Trade and Industry, Japan) NEDO(New Energy and Industrial Development Organization) funded the project from June 2012 to March 2013.

● NLC provided 80.3 tonnes of lignite to KSL pilot plant, Indonesia for testing purpose. The pilot plant was visited by NLC officials during sep-2012.

● Non Disclosure Agreement made between NLC & KSL● UBC product produced in the pilot plant from NLC’s lignite is to be

tested for firing in boiler at Japan By KSL.

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Upgradation of Brown Coal using waste heat from flue gas

• R&D work on up gradation of brown coal by Mizuho Information & Research Institute along with M/s. UBE Industries Ltd.

• NLC and M/s UBE Industries Ltd are under taking preliminary discussions for collaboration in this research project.

• Process: Lignite crushing, removal of sulphur from flue gas, drying of lignite using flue gas (waste heat) from Power Plant.

Properties Raw LigniteUBC

Powder

Proximate Analysis

1 Moisture （％） 53.36 0.00

2 Ash （％） 9.93 18.50

3 Volatile Matter （％） 20.10 43.20

4 Fixed Carbon （％） 16.60 38.30

5Gross Calorific Value (cal/g)

  2280 5350

Characteristics of NLC Lignite and UBC Powder

Properties Raw LigniteUBC

Powder

Ultimate Analysis

1 Moisture （％） 53.36 0.00

2 Ash （％） 9.93 18.50

3 Carbon （％） 24.14 55.84

4 Hydrogen （％） 1.88 4.31

5 Nitrogen （％） 0.29 0.61

6 Sulphur （％） 1.34 2.69

7 Oxygen （％） 9.05 22.15

Characteristics of NLC Lignite and UBC Powder

Properties Raw LigniteUBC

Powder

Chemical Analysis of Lignite Ash

1 SiO2 （％） 57.30 51.70

2 Al2O3 （％） 22.30 24.70

3 Fe2O3 （％） 9.20 10.60

4 CaO （％） 3.20 3.70

5 MgO （％） 0.90 1.10

6 Na2O （％） 0.10 0.20

7 K2O （％） 0.10 0.10

8 SO3 （％） 3.90 4.80

9 TiO2 （％） 2.20 2.30

10 Others （％） 0.80 0.80

Characteristics of NLC Lignite and UBC Powder

Other Thrust Areas

• Surface coal gasification technology.

• Underground Coal Gasification (UCG).

• Project for CO2 separation, including IGCC and CCS.

• Oxygen combustion technology demonstration.

• Carbon capture and storage.

• Coal washing technology.

• High efficient lignite drying.

• Enhanced Coal Bed Methane recovery.

• Mining of deep seated lignite.