1. Roundtable Conference on Coal 2011 Way forward to Meet Demand of Coal Current & Future Assessment for Coal Industry In India by Mr. V K Sehgal Mg Director Global Coal & Mining Pvt Ltd New Delhi 21 st September 2011

2. Coal is the most widely distributed fossil fuel in the world It is found in about 70 countries across the globe The proven reserve of coal is estimated to be about 826 billion tonnes at the end of 2009 Though coal is widely distributed across the globe, 78% of world coal reserves are situated in five countries The countries having significant share of coal reserves are United States (28.9%), Russia (19%), China 13.9%), Australia (9.2%) and India (7.1%) Geographical Distribution of Coal

9. WEST COAST # of Ports Gujarat 40 Maharashtra 53 Goa 5 Daman & Diu Port 2 Karnataka 10 Kerala 13 Lakshadweep Islands 10 EAST COAST # of Ports Tamilnadu 15 Pondicherry 1 Andhra Pradesh 12 Orissa 2 West Bengal 1 Andaman & Nicobar Islands 23 Port Logistics

10. WEST COAST # of Ports Gujarat 40 Maharashtra 53 Goa 5 Daman & Diu Port 2 Karnataka 10 Kerala 13 Lakshadweep Islands 10 EAST COAST # of Ports Tamilnadu 15 Pondicherry 1 Andhra Pradesh 12 Orissa 2 West Bengal 1 Andaman & Nicobar Islands 23 Port Logistics

11. Inland Logistics

12. Inland Logistics Railways

13. National Optimization

14. Future Coal Supply Scenario Domestic coal production has been growing @ 6-7% per year. Growth in production in 2010-11 is showing downward trend. Production from captive blocks can only help to improve the growth rate. Demand supply gap is set to widen and also the dependence on imports. 110 -115 mt of coal may have to be imported in 2011-12. This figure will go up further to over 200 MT at the end of next F Y lan. Global coal production is growing @ 3.5 % Global coal availability may not come to our rescue. Situation calls for immediate steps to boost domestic production.

15. Variables ??? Projected growth in coal demand is contingent upon achieving 8 to 9 % growth in GDP. Growth in user sectors like electricity, iron & steel, cement etc, which is dependent on stimulating financial market, stable government and policy reforms driven by domestic socio economic compulsions. Growth in coal transportation infrastructure both rail and ports is imperative for growth in production and availability. Delay in availability of statutory approvals and belated resolution of problems relating to land acquisition, R & R and forest land etc. Safe and investor-friendly climate, which in turn is dependent upon Government’s ability to deal with law and order problems and ensure harmonious working environment in coal mining areas.

16. Variables ??? Imported coal: 1. New Mining Law in Indonesia could impact imports. 2. High moisture, high sulphur and other quality related issues. 3. High ocean freight from long distance sources of met coal (US and Canada). 4. Steeply rising trend in international coal prices. 5. Lack of transport Pit-to-Port infrastructure in Mozambique. 6. Handling capacity at ports and inward transport.

17. Policy issues Recent policy decisions: SLC (ST) has been substituted by FSA Monitoring Committee for power sector to address issues and disputes arising out of FSAs. Auction of coal blocks approved by the Parliament. Government is working on setting up of an Independent Coal Sector Regulator to promote interalia best mining practices, optimal development, rational pricing, coal conservation and evolution of competitive market etc. GOM is examining Coal Mines Nationalisation (Amendment ) Bill 2000 to allow mining private companies without restriction. Clean Energy Cess of Rs. 50 per tonne levied from July 2010. This is applicable to imported coal also.

18. Impact of forest regulations Decision to identify the coal bearing areas as ‘Go’ and ‘No Go’ is bound to have negative impact on growth of domestic coal production As MOC and MOEF, 48% of areas in central and eastern India fall in ‘No Go’ category. Several working mines, both CIL and captive are also affected. As per CIL estimate, it negates about 250 -300 mt of coal production in long term and 20-25 mt in near term. Only hope is that final decision would be taken after necessary field studies by MOC and MOEF jointly. Coal mining is location specific, therefore one can always hope that government would take a pragmatic view based on the international experience and practices.

19. What could possibly be done? By the Coal Industry No more soft option approach. Long Term planning with Master plan for the whole coal field is to be enforced. Serious approach for opening UG mines and make serious efforts to restore old abandoned mines Engage professionals / specialized agencies for restoration/up keep of used land. Ensure proper mine planning and simultaneous restoration / reclamation. Area / region specific species secondary green cover of tangible economical value to the locals should be grown over reclaimed mines. Locals along with State Govts. must be involved in all R & R efforts.

20. What could possibly be done? By the Coal Industry Comprehensive pre -project studies with detailed project report should be carefully carried out. Rehabilitation of PAPs must be satisfactory and visibly better than their original habitats and economic living standard. For affected tribal population, implementation should be sincere, transparent and with full involvement of the local establishment. Effective communication with them to make them understand that the development is not anti-local people, it is for the people and for entire country. Last but not the least, industry has to be true to what it says and prove the same in action.

21. What could possibly be done? By the Government: Lay down clear, realistic and implementable rehab policies. Precise demarcation of coal bearing areas is required. As far as possible only bio-diversity sensitive areas may be ‘barred’ for mining. Monitoring must be very regular and by specialized agencies. Monitoring agencies should work in close coordination with local establishment

22. What could possibly be done? By the Government Adopt a pragmatic and holistic approach Wherever possible the restoration activity can be a part of tribal and other development schemes Promote / encourage research in economic restoration of mined out area. Punitive action / penalties for non-implementation and violations. Impose tax for funding restoration and research. Do not allow politicalisation of development related socio-economic issues.