1. Since the beginning of industrialization in the 19th century, coal has greatly influenced the global energy supply. Today, coal is one of the leading sources of energy among all non-renewable resources. India also has a long history of commercial coal mining, which covers more than 240 years. The Indian coal industry was founded in 1774 by the East India Company in the Raniganj coal basin on the west bank of the Damadar River and continued to develop over the centuries. With the adoption of the Coal Mines Act of 1973, all coal mines in India were nationalized, which otherwise would have been primarily a private enterprise. Coal India Limited (CIL) was subsequently founded on November 1, 75, as a new public company to provide better organizational and operational efficiency in the coal sector. Currently, CIL is the largest coal mining company in the world, producing 554.14 million tons (tons) in 2016-1917, or 84% of the total coal production in the country. However, the commercial production monopoly that Coal India used after nationalization in 1973 was broken by the government on February 18, which allowed private firms to introduce commercial coal mining.
2. Commercial coal mining has always been determined by the needs of domestic consumption since its inception. Last year, India became the second largest consumer of coal in the world after China, which accounts for 11% of world coal consumption. With the fifth largest proven coal reserves in the world after the USA, Russia, Australia and China, the choice of coal as the dominant fuel in the country’s energy balance is obvious.
3. Unlike the coal industry, the first commercial discovery of oil and natural gas was made in India in 1889 in Digboi, Assam. However, the natural gas industry did not acquire value until the 1970s, when Oil and Natural Gas Cooperation Limited (ONGC) discovered large reserves in the fields of the Southern Basin. As a result, in 1984, the State Gas Authority India Limited (GAIL) was created, the purpose of which was to stimulate gas consumption and develop the infrastructure for intermediate and lower gas.
4. Although historically it is part of India’s energy mix, natural gas has never played a noticeable role compared to the relatively low availability of coal. At the same time, an increase in the demand for natural gas is expected as a result of an increase in the demand for energy and a reduced environmental impact compared with other types of fossil fuels.
5. The largest buyers of coal in India are the electricity, steel, cement, and sponge industries, while natural gas is mainly used in the fertilizer industry, power plants, gas distribution in cities and the sponge iron industry. Coal accounted for 57% of the country’s main energy consumption in 2016, followed by oil and gas by 29% and 6%, respectively. Since most of the electricity in India is thermally generated at these plants compared to nuclear and renewable energy, there is no doubt that this generation of energy is very dependent on these two fossil fuels. According to the Central Electricity Authority, coal (60.13%) and natural gas (7.95%) make up 68.08% of the total production of the installed power plant in India, like March 17.
6. India is in the early stages of a comprehensive transformation, which opens up new opportunities for its 1.3 billion people and places the country at the center of many international relations. The energy sector is developing rapidly, but it faces additional challenges due to its dependence on fossil fuels and the implementation of planned renewable energy projects. Coal and natural gas will continue to play an important role in ensuring the country’s energy security. However, since policy makers account for 7% of global CO2 emissions (the third largest after China and the US), policymakers should take into account that the country currently has global responsibility for minimizing the negative environmental impact of increased CO2 emissions Paris October 16