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Lignite Sector in India Industry Information Insights 2014
| Date post: | 03-Sep-2014 |
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Lignite Sector in India
Industry Information Insights 2014
Table of Contents
Introduction
Lignite Reserves
Lignite Production
Lignite Consumption
Lignite Based Power Plants
Issues In Lignite Mining
Introduction
Lignite, also referred as Brown coal, is the lowest rank of coal. It is identified by its brownish-black color and texture. It is soft, has a woody structure and disintegrates on drying.
Lignite is characterized by low heat content, high percentage of moisture content, rangingfrom 30-50% with high oxygen content.
It is formed due to bio-decay of vegetation, metamorphism and other geological processesover thousands of years. In these processes vegetation is converted to Peat – Lignite -Bituminous Coal – Anthracite Coal.
Unlike Coal, Lignite is not traded in any significant extent in world markets, because of itsrelatively low heat content (which raises transportation costs on unit Energy content basis)and other problems related to transport and storage. Lignite is extensively used as a fuel inpit head thermal power plants and industries nearby.
Lignite Reserves
India has estimated lignite reserves of 43 billion tonnes as on 31 March, 2013.
Lignite deposits in India is confined to states of Tamil Nadu, Rajasthan, Gujarat, Pondicherry,Jammu & Kashmir and Kerala where coal is almost absent.
State Proved Indicated Inferred Total (BT)
Tamil Nadu 3.74 22.90 7.71 34.35
Rajasthan 1.17 2.67 1.85 5.69
Gujarat 1.28 0.28 1.16 2.72
Pondicherry 0.00 0.41 0.01 0.42
Jammu & Kashmir 0.00 0.02 0.01 0.03
Kerala 0.00 0.00 0.01 0.01
West Bengal 0.00 0.00 0.00 0.00
Total 6.19 26.28 10.75 43.22
Lignite Production
Lignite production in India was first started at Neyveli in Tamil Nadu during 1961-62.
In India, lignite production has increased at 5.97% CAGR in last ten years. Neyveli LigniteCorporation (NLC) and Gujarat Mineral Development Corporation Limited (GMDCL) aretwo major lignite producing companies.
26.0227.96
30.34 30.23 31.2933.98
32.4234.07
37.73
42.33
46.47
0
5
10
15
20
25
30
35
40
45
50
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
MT
Lignite Consumption
Lignite is mostly consumed for power generation. About 75% to 80% of total lignite mined isused by electricity sector. The table below gives industry-wise consumption of lignite for pastsix years.
Year Electricity Cement Paper Cotton Others Total
2005-06 23.36 0.79 0.23 1.11 4.86 30.34
2006-07 23.92 0.77 0.22 0.84 5.06 30.80
2007-08 26.76 0.96 0.35 0.77 5.83 34.66
2008-09 25.71 0.01 2.46 6.01 31.79
2009-10 28.14 0.38 1.82 4.09 34.43
2010-11 29.90 0.36 2.56 1.18 6.25 37.69
2011-12 32.06 1.01 0.06 1.24 8.74 41.88
Lignite Based Power Plants
India has 5110 MW of lignite based power generation capacity. All the pit-head power plantsare located in Tamil Nadu, Gujarat and Rajasthan. List of power plants is given in the belowtable.
Name State Capacity (MW) Sector Owner
Neyveli TPS II Tamil Nadu 1470 Central NLC
Jallipa-Kapurdi TPP Rajasthan 1080 Private JSW
Neyveli TPS I Tamil Nadu 600 Central NLC
Surat Lignite Gujarat 500 Private GIPCL
Neyveli TPS I Ext Tamil Nadu 420 Central NLC
Kutch Lignite Gujarat 290 State GSECL
Akrimota Power Plant
Gujarat 250 State GMDC
Barsingsar TPS Rajasthan 250 Central NLC
Giral Lignite TPS Rajasthan 250 State RRVUNL
Issues In Lignite Mining
Lignite Reserves Confined To Few States
Transportation of lignite too far off places is not desirable as it is prone to spontaneousignition. Hence development of lignite mines and lignite based thermal power stations haveto be confined to these regions.
Difficult Economic Viability
Because of low heat value of lignite and high moisture content, higher productivity has to beachieved in the opencast mines with a compulsory pit head linkage to make lignite miningeconomically viable.
Opencast Mining Method Only
At present open cast mining is being adopted for lignite production throughout the world.Underground mining is not followed due to weak roof and floor condition, spontaneouscombustion nature of lignite, existence of high pressure aquifer system below lignite.
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