Introduction

Energy is the driving force and material foundation for economic growth and social development and is also a precondition for guaranteeing the welfare of the people. Oil and natural gas, in particular, have become important strategic resources for a country or a region in this endeavour. It is estimated that steady growth in Indian population and its working-age group will help India achieve one of the strongest GDP growth rates through 2040. This creates new demands for national energy security. Consumption of coal, oil and natural gas are expected to account for 90 percent of the world energy consumption in 2030 and 80 percent of the world energy consumption in 2040. Global energy demand is expected to be about 30 percent higher in 2040 compared to 2010. Under such circumstances, searching for energy security and devising suitable energy strategies, including encouraging energy cooperation and avoiding energy competition, will be the main focus of India’s sustainable energy development.

Indian Energy Scenario

With rich resources and a large population, India managed high economic growth in recent years with a GDP of 8.6 percent in 2010–2011 and 7.3 percent in 2011– 2012. It is estimated that India’s average annual growth rate of real GDP would be 7 percent during the 2015–2030 period, while the world average is expected to be only 3 percent during the same period. Hence, Indian energy security assumes great importance, second only to food security, because of its fragile energy status and high dependence on energy imports, especially due to the large gap between energy demand and energy supply.

Coal Resources

India has vast coal resources. In April 2011, its coal reserve was estimated to be around 285.86 billion tonnes, distributed mainly in the states of Jharkhand, Orissa, Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra, of which hard coal proven reserves and lignite reserves were around 246, 92 and 36 billion tonnes, respectively. Yet, it is also estimated that India’s coal reserves would be inadequate to meet its development requirements after 2050. There are three major coalfields in India, including Lower Gondowana Coalfields, Upper Gondowana Coalfields and Tertiary Coalfields. The contribution of Gondowana Coalfields to total Indian coal production is 99.48 percent. Coal accounted for 53.85 percent of the country’s energy needs in 2010 and continues to be the mainstay of Indian energy production, not only due to large coal reserves, but also due to improved coal exploitation and processing technologies.