Scribd
Upload
89 views9 pages

Coal Mining in India

The document discusses the coal mining industry in India from an industrial organization perspective. It notes that India has the fifth largest coal reserves in the world and coal mining is a capital and labor intensive industry. The government enjoys a monopoly in coal production through Coal India Limited, which accounts for over 80% of domestic coal production. Power plants are the largest consumers of coal. The barriers to entry in the coal mining industry are high due to capital requirements, government regulations on pricing and environmental clearances. The performance targets for the industry include increasing production to 1.5 billion tons by 2020 to achieve self-sufficiency and reduce imports.

Uploaded by

Avinash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
89 views9 pages

Coal Mining in India

The document discusses the coal mining industry in India from an industrial organization perspective. It notes that India has the fifth largest coal reserves in the world and coal mining is a capital and labor intensive industry. The government enjoys a monopoly in coal production through Coal India Limited, which accounts for over 80% of domestic coal production. Power plants are the largest consumers of coal. The barriers to entry in the coal mining industry are high due to capital requirements, government regulations on pricing and environmental clearances. The performance targets for the industry include increasing production to 1.5 billion tons by 2020 to achieve self-sufficiency and reduce imports.

Uploaded by

Avinash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Coal Mining in

India
FROM AN INDUSTRIAL ORGANIZATION PERSPECTIVE
By,
Avinash Kumar Mahto
Roll No. 1502043
PGDIM 22

Introduction

Structure

Conduct

Performance

India accounts for 286 Billion tonne of coal resource out of 851 Billion tonne of Global coal reserve
India has the fifth largest coal reserves in the world

Of the total reserves, nearly 88% are non-coking, 11.5% coking coal and the balance are tertiary
coals

characterized by its high ash content (45%) and low Sulphur content

The power sector is the largest consumer of coal (70%) followed by the iron and steel and cement
segments

Growing demand puts target production to 1.5 Billion tonne by 2020

Special Features

Its a high capital as well as high labor industry

Demand is Huge

Power plants are main customers

Government regulated

Socio-economic obligations

Introduction

Structure

Market
Structure

Barrier to
Entry

Conduct

Performance

Degree of
Integration

Government enjoys a monopoly in producing coal with over 90% of the production coming from
government-controlled mines

Target to become self sufficient and reduce import (currently imports110 MT)

Coal India Limited, Worlds largest coal Producer, is the leader

Reached highest production of 536 MT in 2015-16

Greater than 80% of the domestic production

Other small players like TATA steel, IISCO, DVC, SAIL, NTPC and SAIL with their captive mines
produces coal for their own industrial purpose

Power Sector is the main buyer

Product Differentiations

Broadly of two types: Coking and non coking coal

Option of Coal quality differentiation using Washeries Unit

Introduction

Structure

Market
Structure

Barrier to
Entry

Conduct

Performance

Degree of
Integration

Capital Intensive

Government Regulated Price low to compete

Land acquisition and Environment clearance is the biggest hurdle

Long gestation period

Technology expertise required

Customers like large Power projects, cement plants and Iron & Steel plants
enters into Fuel Supply Agreements (FSA)

Mines located in rural areas unsupported by infrastructure

Introduction

Structure

Market
Structure

Barrier to
Entry

Conduct

Performance

Degree of
Integration

Coal Mining industry provides the raw materials for power, steel and
cement companies

Coal India have set up their own washeries to wash and improve quality

Not much vertically integrated

Some of the Power companies like NTPC, DVC and steel companies like
TATA Steel, SAIL have some degree of integration as they have their own
captive mines

Operated in all grades of coal with all forms of mining technology

Hence, Higher degree of horizontal integration

Introduction

Structure

Conduct

Performance

Pricing

Prices are regulated by government

Most mines are running in losses

Coal products bought even if of inferior quality, cheaper than import

Production

Semi mechanized to fully mechanized mines

Both Underground and Surface Mining method are employed

Government thrust to opencast mines for higher production

Distribution

Distribution is mainly outsourced

Trucks/Dumpers are used for short distance transfer

Rail rakes are booked for long distance supply

Introduction

Structure

Conduct

Performance

Target :

900 Million Tonne for Coal India Limited

1.5 Billion tonne for Industry

Reduce Imports

Achievements

Coal India Limited opened their foreign arm in Mozambique, Africa

Production grew by 8.5% in 2015-16


Coal

Import reduced by 15% in April16

2011-12

2012-13

2013-14

201415(Prov.)

2015-16*

Coking Coal

31.80

35.56

36.87

43.71

26.78

Non-Coking
Coal

71.05

110.23

129.99

168.39

84.90

Total Coal
Import

102.85

145.79

166.86

212.10

111.68

Coke

2.37

3.08

4.17

3.29

1.78

Imports

References

The Indian coal sector: Challenges and future outlook Indian


Chamber of Commerce by PwC

www.coal.nic.in

www.coalindia.in

www.mediajournal.org

http://www.livemint.com/Industry/GZo2ojkbPmqJyZDwUMKvVP/Co
al-imports-will-further-decline-in-fiscal-2017-coal-secre.html

Thank You

You might also like