Black gold reserves may exhaust by 2040-41

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New Delhi, Sep 7 : Stressing the need to employ new mining technologies, a top PSU official said India is likely to run out of its 60-70 billion tonne of coal reserves by 2040-41 if the demand continues to grow at the present pace.

“The demand for coal will reach 2 billion tonne mark by 2016-17. We need to grow at the rate of 17-18% from present 6-7% meet this growing demand,” Coal India Ltd chairman Partha S Bhattacharyya said at the ICC Coal Summit. “We need to employ new mining technologies to go deeper to explore the untapped resources, otherwise by 2040-41 our present coal blocks will run out of reserves due to growing demand from consuming industries,” he said.

“The demand (for coal) by power sector for 2011-12 has been pegged at around 730 million tonne but the production target for the 11th Five Year Plan is at around 680 million tonne,” he said.

Echoing sentiments, coal secretary H C Gupta said, “Actual demand is more than what was forecast by the Working Group on Coal for the 11th Plan. We are looking to bridge the demand-supply gap.”

However, minister of state for coal Santosh Bagrodia was of the view that there is no shortage of coal in the country and the raw material can be unearthed at the rate of 12% by this year itself.

“Where is the shortage. CIL has at present about 31 million tonne coal with them. Around 15 million tonne are kept for e-auction route for the consumers,” he said.

Talking about problems the industry faces, Bhattacharyya said, land acquisition and environmental issues are some hurdles in the growth of coal sector. Apart from CIL, efforts are being made to give more blocks for development to other private and public sector companies, Gupta said.

“Besides, efforts are also made to streamline the process to give environment and forest clearance so that such approvals are given in time bound manner,” he said.

To mitigate the freight and transportation problems faced by coal miners, the government is looking at providing railway link to the extractors.

“Coal ministry is talking to the ministry of railways, so that transportation does not become a bottleneck in growth of this industry,” Gupta said.