India may end up wasting a lot of coal reserves

More than 36 million Indians will be affected by flooding along the country's coastline in the past three decades, according to a study by the climate central, an American research agency. The study warns that by 2050, more than 300 million people around the world will face long-term flooding. By 2100, more than 200 million acres could collapse permanently. These alarming predictions mean that countries around the world will be under increasing pressure to accept stricter greenhouse gas emission targets in order to stop rapid climate change The new forecast has brought great difficulties to India. Most of India's energy demand depends on coal. At current technology levels, wind and solar cannot meet more than a quarter of the country's energy needs. In the near future, India will continue to rely on coal for most of its energy needs. The 2015 Paris Agreement prohibits the use of power coal by 2030 in developed markets and by 2050 in all countries. This means that India has 30 years to mine its huge coal reserves India is the fourth largest coal producer in the world, with a production of 662.79 million tons in fiscal year 2016-17. The country's coal reserves are 315.14 billion tons.

Still, India imports a large part of its coal demand. India's coal imports increased from 49.79 million tons in 2007-08 to 109.5 million tons in 2016-17. Imports are growing rapidly, while the country's huge reserves have yet to be developed. India will have to increase its coal production to 1 billion tons a year to meet its demand for coal The government is increasingly aware that coal is the key to India's goal of becoming a $5 trillion economy over the next five years. In August, India allowed 100% of foreign coal mining investment to open up the coal industry. Until then, foreign investment was only allowed to be used in self mining or by investment companies. Despite the easing of restrictions, few foreign companies have shown interest in this area. One reason is that the Paris Agreement imposed several restrictions on coal mining, which forced global companies such as Anglo American, Rio Tinto, Mitsubishi, Mitsui properties and BHP Billiton to withdraw from the coal business. There are also many financial institutions that restrict the financing of the coal business In September, a high-level committee set up by the coalition government proposed major reforms, including privatization of the coal industry. One of the main suggestions is to get rid of captive mining. The panel recommends that the practice of allocating funds directly to the public sector be stopped, thereby eliminating the main disadvantages faced by the private sector in coal mining. The biggest challenge for foreign companies to enter India for coal mining is the presence of Indian coal companies, which own many of the country's best coal mines, making mining easier and cheaper. Foreign investors must compete with the country's private companies for inferior mines The government is currently auctioning 27 coal mines. Although the government wants to attract much-needed foreign investment in the industry, this round of bidding is not without problems. Mines are provided in the west of the country, while consumer industries are in the East. As a result, the response to the proposal may not be as enthusiastic as expected India's coal policy is always determined by the requirements of the domestic industry. All major policy decisions in independent India are made when the private sector is unable to meet the capital and technology needs of growing industries. In the past four decades, the situation has changed dramatically. The government should create an open market for coal to promote investment by the private sector and foreign mining companies in India. The government must dismantle India's coal dominance in the industry and create a predictable policy environment to make effective use of the 30-year period set out in the Paris Agreement.