Last year, the total coal imports from both Indonesia and South Africa were put at around 2.5 million tonnes with the calarofic value ranging from 5800 Kcl per kg to 6300 Kcl per kg.

Cheaper and increasing imports of coal have made a big dent on the lignite market in both Gujarat and Rajasthan with the consumers having shown their preference for the imported material.

``We have had to curtail our lignite production to a large extent'', says a senior official of Rsmdc (Rajasthan State Mineral Development Corporation Ltd). Alongside the margins have also fallen to a large degree. The state mineral corporatin has been allowed by the government to sell lignite to the retail consumers but with the imported coal making its increasing appearance the market(of lignite) is in big danger. ``We have to find a difference strategy to deal with the market conditions'', says the spokesman.

Rajasthan is full of lignite deposits in the districts of Bikaner, Nagaur and Barmer but due to the faulty policy of the government the same could not have been exploited so far. It was only after some serious efforts that the corporation was allowed by the government to sell lignite in the retail market.

Due to the cheaper cost the lignite had found some good customers but now the whole market scenario is changing.

The state mineral corporation has developed the necessary skills and expertise in mining lignite and selling the same. Due to the mineral's special features it could not be transported to long distance.

This is the reason why lignite has the bulk use in producing power. The government had advertised some large-size lignite power projects but so far no success has been made. At Barsingsar, the Modis of Calcutta have yet to finalise their power project based onlignite.

The same is true in case of deposits of Kapurdi and Jalipa in the Barmer district. At one stage the Reliance Power Corporation, a subsidiary of Reliance Industries Ltd., had shown interest in putting up a big power project but now they have withdrawn. It is said that the mining of the mineral is somewhat difficult.

``We are also revising our whole policy of inviting power developers so that the conditions are congenial for large investments'', says a senior official of the government. Some more concessions and incentives may be allowed.

The mineral corporation produced 2.75 lakh tonnes of lignite last year but this year the production may be on the lower side. ``The demand has slackened a bit'' says the official. It is selling lignite at Rs 740 per tonne (ex-mine). The calarofic value of the lignite varies from 2700 Kcl per kg to 3000 Kcl per kg.