MINERAL AND ENERGY RESOURCES

MINERAL AND ENERGY RESOURCES

 

Topics covered:
 

Mineral Resources:

·       Types of Mineral Resources

·       Distribution of Minerals in India

·       Measures by government

·       Mining – issues and govt. measures

 

Energy Resources:

·       Types of Energy resources

·       Distribution of Energy resources

·       Development of resources with time

·       Government measures

·       Energy security

·       INDCs and Paris Accord

·       Facts and stats for mains

 

Introduction:

  • India is endowed with a rich variety of mineral resources due to its varied geological structure. Bulk of the valuable minerals are products of pre-Palaeozoic age.
  • They are mainly associated with metamorphic and igneous rocks of the peninsular India.
  • The vast alluvial plain tract of north India is devoid of minerals of economic use.
  • The mineral resources provide the country with the necessary base for industrial development.
  • Minerals have certain characteristics. These are unevenly distributed over space. There is inverse relationship in quality and quantity of mineralse. good quality minerals are less in quantity as compared to low quality minerals. The third main characteristic is that all minerals are exhaustible over time. These take long to develop geologically and they cannot be replenished immediately at the time of need. Thus, they have to be conserved and not misused as they do not have the second crop.

 

Types of Minerals

A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties.

 

  • Minerals
  1. Metallic minerals
    • Ferrous
    • Non-Ferrous
  2. Non – metallic minerals
    • Fuel Minerals
    • Other Non- Metallic Minerals

 

  • On the basis of chemical and physical properties, minerals are grouped as −
  • Metallic minerals
  • Non-metallic minerals.
  • Major examples of metallic minerals are iron ore, copper, gold, etc.
  • Metallic minerals are further sub-divided as ferrous and non-ferrous metallic
  • The minerals containing iron is known as ferrous and without iron is known as non-ferrous (copper, bauxite, etc.)
  • Non-metallic minerals are either organic in origin such as fossil fuels also known as mineral fuels which are derived from the buried animal and plant life such as coal and petroleum. Other type of non-metallic minerals are inorganic in origin such as mica, limestone and graphite, etc

 

Occurrence of Minerals

  • Minerals are not evenly distributed over the earth’s surface. They are concentrated in particular areas or rock formations.
  • Metallic minerals, such as copper, tin, lead etc. may occur in almost pure form in veins – a fissure in rock strata containing a thin deposit of crystalline rock formed by extremely hot magma rising up – and lodes (very thick veins).
  • Other metallic minerals are obtained from ores, in which several metals are associated like silver and mercury, lead and zinc etc.
  • Some minerals occur in beds or layers which have formed due to deposition, accumulation and concentration in horizontal strata in earth’s crust. Examples include coal, iron ore etc.
  • Minerals like gypsum, potash salts and common salt are formed by evaporation of lakes in desert areas.
  • Minerals like gold, tin and platinum are highly resistant to weathering and may get reduced to small particles carried off by running water. These are known as alluvial deposits. Gold, platinum, chromite, diamonds and zircon are recovered from alluvial deposits by placer mining methods.
  • In some places like Urals of Russia, Canadian shield, Katanga plateau in Zaire, Chhotanagpur plateau in India, a variety of minerals are found in great abundance.
  • But the Amazon basin, the Netherlands, Denmark and some of the Central American countries are poor in minerals.
  • Some minerals are found in restricted areas of the world. These minerals include tin, vanadium, nickel, cobalt, gold and asbestos etc.

 

Minerals and Physiography of India:

  • Shield Regions
    • Chotanagpur plateau
    • Dharwad region

 

 

Description Shield Region Metallic Minerals
·  Chota Nagpur Plateau is a store house of mineral resources such as mica, bauxite, copper, limestone, iron ore and coal. The Damodar valley is rich in coal and it is considered as the prime centre of coking coal in the country.

· Dharwad region – The minerals found in the area are Bauxite, Kaolin and Red ochre. A deposit of highly siliceous bauxite clay has been located about three kilometers south. Similar deposits are noticed near Alwal Villages of Dharwad taluk.

 

  • Rift valley- Gondwana time
    •  Damodar valley
    •  Mahanadi valley

 

Description Rift valley Region Coal Reserves
·        Gondwana Supergroup includes continental rift-basin deposits with minor marine inputs formed between late Carbonaceous and middle Jurassic. Deposition took place mainly in three river valley basins:

  1. Damodar Valley,
  2. Son-Mahanadi Valley, and
  3. Pranhita-Godavari Valley.

·        All these, barring the Barren Measures, contain economically exploitable coal seams.

 

  • Marine Transgression
    • Gulf of Khambhat 
    • Gulf of Kutchh

 

 

Description Marine transgression Petroleum Reserves
·       A marine transgression is a geologic event during which sea level rises relative to the land and the shoreline moves toward higher ground, resulting in flooding.

·       Transgressions can be caused either by the land sinking or the ocean basins filling with water (or decreasing in capacity).

 

Distribution of Minerals in India

  • Minerals are unevenly distributed on the earth’s surface.
  • All minerals are exhaustible in nature, i.e., will exhaust after a certain time.
  • However, these minerals take long time to form, but they cannot be replenished immediately at the time of need.
  • More than 97% of coalreserves occur in the valleys of Damodar, Sone, Mahanadi, and Godavari rivers.
  • Petroleumreserves in India are located in the sedimentary basins of Assam, Gujarat, and Mumbai High (i.e. off-shore region in the Arabian Sea – shown in the map given below). Some new petroleum reserves are also found in the Krishna-Godavari and Kaveri basins.

 

5 mineral rich regions in India:

  1. Northern belt
  2. Central belt
  3. Southern region
  4. SW region
  5. NW region

 

Northern Belt:

  • Chota Nagpur plateau
  • Kynite (100%), Iron (90%), Chromium (90%), Mica (75%), coal (70%) Manganese, copper, limestone
  • Assam Petroleum Reserve
  • Lignite coal

 

Central Belt:

  • Chhattisgarh region – Iron in Extension of Chhota Nagpur plateau, limestone in Chhattisgarh
  • Godavari- Wardha valley – coal field

 

 

South- East region:

  • East Karnataka: Bellary-hospet region- iron
  • Andhra Pradesh: Cuddapah, Kurnool
  • Nellore (Andhra Pradesh) – mica, Manganese, lignite coal
  • Telangana: Bauxite
  • Tamil Nadu: Neyveli – lignite coal

 

 

South- West region: 

  • Karnataka: Dharwad, Shimoga, chitradurg, Tumkur, Chikmaglur: Iron, Manganese, limestone
  • Goa: iron ores
  • Maharashtra: Ratnagiri – iron

 

 

 

North West region:

  • Gujarat and Rajasthan
    • Petroleum
    • Salt from kutchh and pyala lake of Rajasthan
    • Lake Sambhar, Lake Didwana in Rajasthan – Gypsum, Borax

 

Major Minerals And Their Global Distribution

 

Iron Ore:

  • Based on the amount of ore and iron content, iron ore is classified into various types:
    1. MAGNETITE ((FE3O4):
      • It is a good quality ore and has very high iron content (about 70%).
      • Black in colour and has magnetic properties.

 

    1. HAEMATITE (FE2O3):
      • Reddish ore with 60-70% iron.

    1. LIMONITE:
      • Yellowish ore with 40% to 60% iron.

    1. SIDERITE
      • Ore with less than 40% iron.
      • It contains many impurities and hence mining, in many places, is economically unviable.

  • India’s iron ore mostly – Hematite
  • India –2nd largest producer of hematite after Russia
  • Magnetite – Russia largest producer
  • China – Hematite, Limonite

DISTRIBUTION OF IRON ORE:

  • In Africa, Liberia, South Africa and Algeria are important producers.
  • In China, there are large iron ore reserves in the Shenyang region of Manchuria, Wuhan and Tai-ye in Chang Jiang valley, Hainan island etc. important centres.
  • Australia is an important producer and exporter of iron ore. Its reserves are found in Western Australia.
  • In South America, Brazil has the largest reserves.
  • In North America, USA and Canada are important producers where Great Lakes area has abundant reserves.
  • In Russia, Kerch peninsula and Kursk region, Ural Mountains have important iron ore mines.
  • In Europe, Sweden and France have major reserves. Rhine valley in Germany, Lorraine, Normandy and Pyrenees of France are important centres.

 

State Mineral rich regions / mines – Iron Ore
Jharkhand Hazaribaug (Lohardaga), Singhbhum [Noamundi, Kariburi, Mahaburi, Gua], Daltongunj
Odisha Bonai, Sukinda, Badampahar, Gurumahisani
KN Shimoga, Chitradurg, Chikmaglur, Tumkur, Kemangundi and Kudremukh mines
Chhatisgarh Dalli rajhara (to Bhilai steel plant), Bailadila (to Vishakhapatnam steel industries)
MH Ratnagiri
AP Kurnool, Anantpur

 

Manganese:

  • Manganese is most commonly derived from ferrous ores which also contain a significant amount of iron.
  • It is a hard and brittle metal that is added to steel to increase its strength.
  • Iron & Steel Industry is the major consumer of manganese ore wherein manganese ore is
  • Used directly as a blast furnace feed.
  • South Africa, Ukraine and Australia have the largest reserves.
  • Abundant deposits are found in Ukraine, Caucasus mountains, Urals and Republic of Georgia.
  • China is also leading producer along with India.
  • Other major producers are Australia, Ghana, Gabon, Morocco, South Africa etc.

 

 

State Mineral rich region – Manganese
Jharkhand All the iron region: Biggest mine – Chaibasa
Madhya Pradesh Balaghat

 

 

State wise reserves of Manganese:

  • Odisha (44%),
  • Karnataka (22%),
  • Madhya Pradesh (13%),
  • Maharashtra (8%),
  • Andhra Pradesh (4%)
  • Jharkhand and Goa (3% each),
  • Rajasthan, Gujarat and West Bengal (remaining 3 per cent).

 

Copper:

  • Copper is a non-ferrous metal which is in high demand by the industry worldwide.
  • It is found in metamorphic and igneous rocks in forms sulfides and oxides.

                      

 

DISTRIBUTION OF COPPER

  • Chile and Peru have more than one third of the world’s copper reserves.
  • The copper mining areas in North America extend along the Western Cordilleras in Mexico, USA and Canada.
  • In Europe, Russia and Poland have resources. Armenia, Georgia, Uzbekistan and Kazakhstan also have significant resources.

 

State Mineral rich regions – Copper
Jharkhand Raka mines, Mosabani mines
Andhra Pradesh Kurnool, Guntur, Nellore
Himachal Pradesh Kangra valley, Kullu valley
West Bengal Jalpaiguri, Darjeeling

 

Bauxite:

  • Bauxite is the ore of aluminium, which makes up 8 percent of the earth’s crust.
  • World’s greatest bauxite producers and exporters are in tropical and subtropical lands but aluminium is manufactured is manufactured in developed countries.
  • Bauxite occurs near the surface and is generally mined by highly mechanized open cast methods.

 

State Mineral rich regions
Jharkhand Garhjat hills
Odisha Panchampatmali hills, Niyam giri, Gandhmardhan hills
Madhya Pradesh Balaghat, Amarkantak
Maharashtra Ratnagiri
Gujrat Khed, Amreli

 

DISTRIBUTION OF BAUXITE

  • Australia, Guinea, Jamaica and Brazil have major reserves.
  • USA has bauxite reserves in Arkansas, Alabama and Georgia.
  • Russian deposits are located in Urals

 

Mica:

  • Mica is a naturally occurring non-metallic mineral that is based on a collection of silicates.
  • Mica can be easily and accurately split into very thin sheets or films of any specified thickness.
  • It has a unique combination of elasticity, toughness, flexibility and transparency.
  • Mica is a very good insulator that has a wide range of applications in electrical and electronics industry.
  • India has enjoyed the monopoly in the production and export of sheet mica in the world.
  • USA, Ukraine, Russia, Brazil, Tanzania are other major producers.

 

State Mineral rich regions
Odisha Kodarma (largest in the world)
Andhra Pradesh Nellore
Bihar Munger
Karnataka Alleppey

 

 

Limestone

  • Limestone rocks are composed of either calcium carbonate, the double carbonate of calcium and magnesium, or mixture of both.
  • Limestone also contains small quantities of silica, alumina, iron oxides, phosphorus and sulphur.
  • Limestone deposits are of sedimentary origin and exist in all the geological sequences from Pre-Cambrian to Recent except in Gondwana.
  • 75 per cent Limestone is used in cement industry, 16 per cent in iron and steel industry [It acts as flux] and 4 per cent in the chemical industries.
  • Rest of the limestone is used in paper, sugar, fertilizers, etc.
  • Almost all the states of India produce some quantity of limestone.
  • Over three-fourths of the total limestone of India is produced by Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat, Chhattisgarh and Tamil Nadu.
  • Madhya Pradesh is the largest producer of limestone [16 per cent].
  • Large deposits occur in the districts of Jabalpur, Satna, Betul, etc.

 

Gypsum

  • Gypsum is a hydrated sulphate of calcium.
  • It is a white opaque or transparent
  • It occurs in sedimentary formations such as limestones, sandstones and shales.
  • It is mainly used in making ammonia sulphate fertilizer and in cement industry.
  • It makes upto 4-5 per cent of cement.
  • It is also used in making plaster of Paris, moulds in ceramic industry, tiles, plastics, etc.
  • It is applied as surface plaster in agriculture for conserving moisture in the soil and for aiding nitrogen absorption.
  • Rajasthan is by far the largest producer of gypsum in India [99 per cent of the total production of India].
  • The main deposits occur in the Tertiary clays and shales of Jodhpur, Nagaur and Bikaner. Jaisalmer, Barmer, Chum, Pali and Ganganagar also have some gypsum bearing rocks.
  • The remaining gypsum is produced by Tamil Nadu [Tiruchirapalli district], Jammu and Kashmir, Gujarat and Uttar Pradesh in order of production.

 

Chromite

  • Chromite is an oxide of iron and chromium = Combination of chromium, iron and oxygen.
  • It is the only economic ore of chromium.
  • The chromium extracted from chromite is used in chrome plating and alloying for production of corrosion resistant super alloys, nichrome, and stainless steel.
  • Used in many other metallurgical, refractories and chemical industries.
  • Reserves of chromite in India is estimated at 203 MT.
  • 93 per cent of the resources are in Odisha [Sukinda valley in Cuttack and Jajapur]
  • Odisha is the sole producer [99 per cent] of chromite ore. Over 85 per cent of the ore is of high grade [Keonjhar, Cuttack and Dhenkanal].
  • Minor deposits are spread over Manipur, Nagaland, Karnataka, Jharkhand, Maharashtra, TN & AP.

 

State Mineral rich regions
Maharashtra Ratnagiri
Karnataka Shimoga
Odisha Sukinda Largest reserve

 

Lead and Zinc

  • Lead is a corrosion resistant heavy metal with a low melting point.
  • Zinc is a silvery blue-grey metal with a relatively low melting and boiling point.
  • Both lead & zinc are found to occur together in galena, pyrites and other sulphide ores along with other metals like silver and cadmium.
  • Galena is found in veins in limestones, calcareous slates and sandstones and occasionally in metamorphic rocks.
  • Major producers are USA, Russia, Australia, Canada, Peru, Spain and Mexico.

 

Distribution of Lead and Zinc ores – India and World

  • Rajasthan is endowed with the largest resources of lead-zinc ore (61 per cent),
  • Andhra Pradesh (3.31 per cent),
  • Madhya Pradesh (2.16 per cent),
  • Bihar (1.67 per cent)
  • Maharashtra 9 (1.35 per cent).
  • Almost the entire production comes from Rajasthan.

 

Gold

  • It is a precious metal and till very recently constituted the international standard of exchange.
  • It is used in ornamentation, dentistry, pharmaceuticals, electronics industry and chemical industry.
  • Important reserves are located in South Africa, Canada, USA, Zimbabwe and Ghana.
  • Gold is also known as international currency.
  • Kolar Gold Field, Hutti Gold Field and Ramgiri Gold Field are the most important gold fields.

 

Diamond

  • Diamond is the hardest naturally occurring substance found on Earth.
  • Diamonds are formed in mantle. They brought to the earth’s crust due to volcanism. Most of the diamonds occur in dykes, sill etc. [Volcanic Landforms].
  • Diamonds are used in ornaments, polishing the surfaces of metals and in gem cutting.
  • The most important industrial use of diamonds is in cutting-edges of drills used for exploration and mining of minerals [Diamond is the hardest substance and it can break other substances without itself getting broken].
  • The Vindhayan system have diamond bearing regions from which Panna and Golconda diamonds have been mined.
    1. Panna belt in Madhya Pradesh;
    2. Wajrakarur Kimberlite pipe in Anantapur district and
    3. Gravels of the Krishna river basin in Andhra Pradesh.
  • Reserves have been estimated only in Panna belt and Krishna Gravels in Andhra Pradesh.
  • The new kimberlite fields are discovered recently in Raichur-Gulbarga districts of Karnataka.
  • Reserves of diamonds in India are not yet exhausted and modern methods are being applied for intensive prospecting and mining.
  • Cutting and polishing of diamonds is done by modem techniques at important centres like Surat, Navasari, Ahmedabad, Palampur etc.
  • Russia holds what is believed to be the world’s largest and richest diamond resources.
  • Botswana is the leading diamond- producing country in terms of value, and the second largest in terms of volume. The two important ones are Orapa and Jwaneng, two of the most prolific diamond mines in the world.

 

 

Mining

Role of Mining in Indian Economy:

  • Indian economy is expected to grow by approximately 7% in the years to come. Sectors like infrastructure and automobiles will receive a renewed thrust, that would further generate demand for power and steel in the country. The mining sector provides raw materials to these fast-growing sectors.
  • The total value of mineral production (excluding atomic & fuel minerals) during 2017-18 has been estimated at $16.6 bn, which shows an increase of about 13% over that of the previous year.
  • The mining sector’s contribution to the GDP is 2.3-2.5 % at present. Mineral production in India grew at a compound annual growth rate (CAGR) of 5.72% between 2013-14 and 2017-18.
  • It can cut down the import costs as the country is the 3rd largest steel producer, with a production of 101.4 million tonnes of crude steel in
  • India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves at around 2,908.85 million tonnes in FY17.
  • It is a labour-intensive sector and provides employment for both unskilled labour and skilled labour. Being a part of the primary sector, it largely provides unskilled jobs.
  • The Development of the mining-based industry also gives a boost to the associated industries and leads to the overall development of the region.

 

 

The Legislative Framework of Mining Sector in India

  • The entry at serial No. 23 of List II (State List) to the Constitution of India mandates the state government to own the minerals located within their boundaries,
  • The entry at serial No. 54 of List I (Central List) mandates the central government to own the minerals within the Exclusive Economic Zone of India (EEZ). In pursuance to this Mines & Minerals (Development and Regulation) (MMDR) Act of 1957 was framed.
  • International Seabed Authority (ISA) regulates mineral exploration and extraction. It is guided by the UN treaty and India being a party to the treaty has received an exclusive right to explore polymetallic nodules over 75000 sq. km in Central Indian Ocean Basin.
  • The MMDR Amendment Act of 2015 introduces Mineral Concessions Grant through auctions to bring transparency and remove discretion; The District Mineral Foundation (DMF) to address the pending grievance of the people affected by mining; and the National Mineral Exploration Trust (NMET) for incentivising regional and detailed exploration to fill the gaps in exploration in the country, and stringent measures to check illegal mining.

 

 

Challenges/Concerns Faced by Mining Sector in India

  • Displacement and rehabilitation issues:
  • Large scale displacement of local people leads to grievances and improper rehabilitation measures, thereby, leading to people’s alienation and develop distrust over the government machinery.
  • It’s not just a loss of land for the local population rather the loss of a tribal way of life and their rich cultural heritage.
  • It has given space to left-wing extremism in the resource-rich areas like Chhattisgarh, Jharkhand, Odisha, etc.
  • Mining also puts the lives of miners at risk due to the rudimentary ways adopted and the absence of adequate safety gear and protocols. For instance, mine-related accidents at Ksan coal mine in Meghalaya- Jaintia Hills (2018), Chasnala near Dhanbad in 1975.
  • Human Rights violations have taken place in forms of mine-related deaths, inadequate rehabilitation, and developmental steps, etc. Massive local protests have taken place against mining in Niyamgiri Hills of Odisha, POSCO in Odisha, Sterlite protest in Tamil Nadu.

 

Rathole mining:

  • This is a form of illegal mining, especially practised in North eastern areas like Meghalaya (Ksan coal mine incident). It involves digging of very small tunnels [only of 3-4 feet high], done both vertically and horizontally.
  • The coal seam is extremely thin in Meghalaya, no other methods would not be economically viable. In Meghalaya, this is the locally developed technique and the most commonly used one.

 

Environmental/Health issues:

  • Environmental pollution has been caused by the Makrana marble mines in Rajasthan, the Granite mines of Karnataka have left a large hole on earth, Damodar river has been severely polluted by coal mining.
  • Loss of biodiversity and local heritage due to mining activities.
  • The prevalence of mining in an area causes various diseases like fibrosis, Pneumoconiosis, and silicosis in workers as well as locals.
  • Water Pollution – water from streams and rivers in mining areas have become acidic and unfit for drinking. Eg: Meghalaya’s Kopili river, Damodar river etc.
  • Contaminated air with high particulate matters is also a major problem in mining rich regions.

 

Administrative issues:

  • Arbitrary allocation of coal mines leads to the long litigation and eventually cancellation of allocations and charges of corruption in block allocations.
  • Delay in environmental clearances due to bureaucratic hindrances.
  • Judicial interventions lead to long delay and losses for investors. For ex: SC imposed a heavy penalty on illegal mining without green clearances in Andhra Pradesh, Telangana, Karnataka, and Odisha in 2017. Banning of Vedanta group in Niyamgiri Hills of Odisha and shut down of 88 illegal mining leases in Goa in 2018.

 

Government’s initiatives

  • Star rating of mining leases to establish a sustainable development framework for the Indian mining sector.
  • An MoU was signed between the Indian Bureau of Mines (IBM) and the National Remote Sensing Centre (NRSC), ISRO in January 2016 to undertake a pilot project on “monitoring of mining activities using satellite imagery” to deter illegal mining.
  • The Mining Surveillance System (MSS) is launched to check illegal mining through automatic remote sensing detection technology.
  • District Mineral Foundation Fund (DMF) was established for the welfare of mining-affected people and areas under Pradhan Mantri Khanij Kshetra Kalyan Yojana [PMKKKY].
  • The National Mineral Exploration Policy has been released to attract private exploration agencies.
  • 100% FDI permitted via automatic route for mining and exploration of metal and non-metal ores. And approval route for mining of titanium bearing minerals and its ores.

 

 

The National Mineral Policy 2019

It includes provisions which will give a boost to the mining sector such as:

  • Encouraging the private sector to take up exploration, on a revenue sharing model.
  • Provision of merger and acquisition of the mining entities and transfer of mining leases and creation of dedicated mineral corridors, and use of coastal waterways and inland shipping for evacuation and transportation of minerals to boost private sector mining areas.
  • It also mentions long term import-export policy for mineral, which will help the private sector in planning and bring stability in business.
  • The policy also makes efforts to harmonize taxes, levies, and royalty with the world benchmarks to help the private sector.
  • Provisions for e-governance, IT-enabled systems, awareness and information campaigns have been incorporated for regulations.
  • The utilisation of the District Mineral Fund for the equitable development of project affected persons and areas.
  • It also introduces the concept of intergenerational equity that deals with the well-being not only of the present generation and also of the generations to come.
  • It also proposes to constitute an inter-ministerial body to institutionalise the mechanism for ensuring sustainable development in mining.

 

 

Mineral Laws (Amendment) Bill, 2020.

  • Removal of restriction on end-use of coal:
  • Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specified end-uses such as power generation and steel production.
  • The Bill removes this restriction on the use of coal mined by such companies. And thus companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.

 

 

Eligibility for auction of coal and lignite blocks:

  • The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.

 

 

Composite license for prospecting and mining:

  • The Bill adds a new type of license, called prospecting license-cum-mining lease. It will be a composite license providing for both prospecting and mining activities.
  • Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively. Prospecting includes exploring, locating, or finding mineral deposit.

 

 

Advance action for auction:

  • The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.
  • Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.

 

 

Transfer of statutory clearances to new bidders:

  • The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.
  • During this period, the new lessee will be allowed to continue mining operations. However, the new lessee must obtain all the required clearances within this two-year period.
  • Currently, upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction. This new lessee is required to obtain statutory clearances before starting mining operations.

 

 

Prior approval from the central government:

  • The Bill provides that prior approval of the central government will not be required by the state government in granting licenses for coal and lignite, in certain cases.
  • These include cases where the allocation has been done by the central government, and the mining block has been reserved to conserve a mineral.
  • Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite.

 

Energy Resources

Introduction:

  • The energy sector is fundamental to growth and development.
  • Energy is one of the major parts of the economic infrastructure, being the basic input needed to sustain economic growth. There exists a strong relationship between economic development and energy consumption.
  • The more developed is a country, the higher is the per capita of energy consumption and vice-versa. Human civilization relies on different sources of energy.
  • Presently, 304 million Indians do not have access to electricity and around 500 million Indians are dependent on solid biomass for cooking.
  • India’s per capita electricity consumption remains a fraction of major economies (in 2017,its per capita energy consumption was about 625.6 kilogram of oil equivalent (kgoe) against the world average of 1860 kgoe ).
  • India’s energy mix is dominated by coal with a 49.6 per cent share, followed by oil (28 percent), biomass (11.6 per cent), gas (7.3 per cent), renewable and clean energy (2.2 per cent) and nuclear energy (1.2 per cent).

 

 

Types of Energy resources

 

Sources of energy

 

  1. Conventional sources
    1. Commercial
      • Coal
      • Petroleum
      • Electricity
    2. Non-Commercial
      • Fire wood
      • Straw
      • Dried dung

  1. Non-conventional sources
    • Bio energy
    • Solar energy
    • Wind energy Tidal energy
    • Energy from
    • urban waste

 

 

 

 

 

Conventional Sources

 

·       These sources of energy are also known as non-renewable sources of energy and are available in limited quantity apart from hydro-electric power. The resources which are widely used and constitute the major source of energy.

·       Examples → Coal, Oil, Natural gas, Wood etc.

·       Limited, Non-renewable, Costly, Cause Pollution & Exhaustible

 

 

Non-Conventional Sources

 

·       These non-conventional sources are also known as renewable sources of energy. Examples include solar energy, bioenergy, tidal energy, wind energy, Geothermal Energy, OTEC (Ocean thermal energy conversion) etc.

·       Renewable, Cheap, Pollution free & Inexhaustible

 

 

Difference Between Conventional and Non-conventional Sources of Energy

Conventional sources of energy Non-conventional sources of energy
These sources of energy are also known as a non-renewable source of energy These sources of energy are also known as a renewable source of energy
They find both commercial and industrial purposes They are mainly used for household purposes
These can be considered to be one of the reasons for the cause of pollution These are not responsible for the cause of pollution
Coal, fossil fuels are two examples Wind, solar energy and Biomass two examples

 

 

Conventional Energy resources:

 

Coal

  • Coal is the most important and abundant fossil fuel in India used for thermal power generation, smelting of iron ore, production of steel and domestic heating.
  • Also called black gold.
  • Found in sedimentary strata [layers of soil].
  • Contains carbon, volatile matter, moisture and ash [in some cases Sulphur and phosphorous]
  • Mostly used for power generation and metallurgy.
  • Coal reserves are six times greater than oil and petroleum reserves.

 

Classification of Coal:
Peat

 

·       First stage of transformation.

·       Contains less than 40 to 55 per cent carbon à more impurities.

·       Contains sufficient volatile matter and lot of moisture [more smoke and more pollution].

·       Left to itself, it burns like wood, gives less heat, emits more smoke and leaves a lot of ash.

Lignite

 

·       Brown coal.

·       Lower grade coal.

·       40 to 55 per cent carbon.

·       Dark to black brown.

·       Moisture content is high (over 35 per cent).

·       It undergoes Spontaneous Combustion [Bad. Creates fire accidents in mines]

Bituminous Coal

 

·       Soft coal; most widely available and used coal.

·       40 to 80 per cent carbon.

·       Does not have traces of original vegetable material.

·       Calorific value is very high due to high proportion of carbon and low moisture.

·       Used in production of coke and gas.

Anthracite Coal ·       Best quality; hard coal.

·       80 to 95 per cent carbon.

·       Negligibly small proportion of moisture.

·       Ignites slowly à less loss of heat à highly efficient.

·       In India, it is found only in Jammu and Kashmir and that too in small quantity.

 

Distribution in India

  • India has the fifth largest coal reserves in the world after USA>Russia>Australia>China.
  • Indian coal has high ash content and high fusion temperature.
  • Around 98% of India’s coal reserves and 99% of total coal production are from Gondwana
  • Deposits of Tertiary coal are mainly confined to the extra peninsula. Important areas of Tertiary coal include parts of Assam, Meghalaya, Arunachal Pradesh, Nagaland, Himalayan foothills of Darjeeling in West Bengal and J&K.
  • Lignite deposits occur in the tertiary sediments in the southern and western parts of peninsular shield particularly in Tamil Nadu, Puducherry, Kerala, Gujarat & Rajasthan and also Jammu & Kashmir.

 

1.Gondwana coal fields [250 million years old]

    • Gondwana coal makes up to 98 per cent of the total reserves and 99 per cent of the production of coal in India. Satpuras, denudation [weathering + erosion] has exposed coal bearing Gondwana strata.
    • The carbon content in Gondwana coal [250 million years old] is less compared to the Carboniferous coal [350 million years old][Almost Absent in India] because of its much younger age.
    • Gondwana coal forms India’s metallurgical grade as well as superior quality coal.
    • The Damuda series (i.e. Lower Gondwana) possesses the best worked coalfields accounting for 80 per cent of the total coal production in India. 80 out of 113 Indian coalfields are located in the rock systems of the Damuda series [lower Gondwana Age].
    • Coking as well as non-coking and bituminous as well as sub-bituminous coal are obtained from Gondwana coal fields.
    • Anthracite is generally not found in the Gondwana coal fields.
    • The volatile compounds and ash (usually 13 – 30 per cent) and doesn’t allow Carbon percentage to rise above 55 to 60 per cent. [It requires few million years more if the quality has to get better. Remember Gondwana coal is 100 million years younger than Carboniferous coal].
    • Gondwana coal is free from moisture, but it contains Sulphur and phosphorus.
    • These basins occur in the valleys of certain rivers viz., the Damodar (Jharkhand-West Bengal); the Mahanadi (Chhattisgarh- Odisha); the Son (Madhya Pradesh Jharkhand); the Godavari and the Wardha (Maharashtra-Andhra Pradesh); the Indravati, the Narmada, the Koel, the Panch, the Kanhan and many more.

 

 

2. Tertiary Coal Fields [15-60 million years old]

  • Tertiary coal 15 to 60 million years old. Carbon content is very low.
  • Mainly confined to the extra-Peninsula [Jammu and Kashmir, Himachal Pradesh, Assam, Arunachal Pradesh etc.]
  • Coal generally has low carbon and high percentage of moisture and Sulphur.[It takes few hundred million years for the carbon content to improve].
  • Important areas of Tertiary coal include parts of Assam, Meghalaya, Arunachal Pradesh, Nagaland, Himalayan foothills of Darjeeling in West Bengal, Jammu and Kashmir, Uttar Pradesh, Rajasthan, Kerala, Tamil Nadu (90 per cent of the reserves) and the union territory of Pondicherry also bear tertiary coal reserves [exceptions].

 

Coal Reserves in India by State

State Distribution
 

 

Jharkhand

 

·       Jharkhand has the first rank in coal reserves and its production. Most of the coal fields in the state of Jharkhand are located in a narrow belt running in the east-west direction almost along 24 degrees north latitude from the Gondwana period.

·       The main coal mining centres of the state are Auranga, Bokaro, Dhanbad, Jharia, Giridh, Karanpur, Ramgarh and Hutar.

·       Jharia coalfield is one of the oldest and richest coal fields of India. It lies south of Dhanbad and stores the best of metallurgical coal (bituminous) in the country.

·       Bokaro coalfield lies in Hazaribagh district.

 

 

Odisha

 

·       Odisha has the second largest coal reserves in the country and it carries more than 24 per cent of the total coal reserves. It produces about 15 per cent of the total coal production of India.

·       Most of the coal deposits of the state are found in Sambalpur, Dhenkanal, and Sundargarh districts.

·       Talchar coalfield of Odisha stretch over Dhenkanal and Sambalpur districts covers an area of about 500 sq km.

·       Other coalfields of the state include Rampur-Himgir and Ib river.

 

Chattisgarh

 

·       Chattisgarh has the third largest coal reserve in India and carries about 17 per cent of the total coal reserves. However, the state has the first rank in the production of coal.

·       Korba coalfield lies in the valley of river Hasdo (tributary of Mahanadi).

·       Other coalfields of the state include Hasdo-Arand, Chirmiri, Jhimli, and Johilla.

 

West Bengal

 

·       West Bengal carries about 11 per cent of the total coal reserves of India. The deposits are found in Bardhman, Darjeeling, Bankura, Jalpaiguri, and Puruliya districts of the state.

·       Raniganj coalfield is the most important coal reserve and mining coalfield of West Bengal. It stretches over 185 sq km in Bardhman and Birbhum district to the northwest of Kolkata. It is known for good quality coal with about 50 to 65 per cent carbon content.

Madhya Pradesh

 

·       About 8 per cent of the coal reserves of the country are found in Madhya Pradesh. The main coal deposits of the state lie in Singrauli, Muhpani, Satpura, Pench Kanhan and Sohagpur.

·       Singrauli is the largest coalfield of MP. It supplies coal to the thermal power plants at Singrauli and Obra

 

Global Distribution of Coal

  • Viable coal deposits are available with more than 70 countries with USA, Russia, China and Australia with largest reserves.
  • China and India are the top coal producers in the world.
  • Most of the Russia’s coal in Siberian Region is untapped.
  • Carboniferous coal of Great Lakes and Appalachians region helped USA become a leading industrialized nation.
  • Coal reserves in Ruhr and Rhineland region coupled with rich iron deposits have made Germany a leading industrial super power of Europe.
  • England too benefited immensely from its coal reserves of South Whales, Yorkshire, Manchester, Liverpool etc. Industrial revolution began here mainly due to rich coal reserves.
Not all deposits of minerals are recoverable in a viable fashion with levels of current technology. Estimated reserves are uncertain predictions based on geological and engineering data about the presence of a certain mineral. Proven reserves are considered to be recoverable economically with current technology

Problems of Indian coal:

  • Not enough high-grade cocking coal – depend on import
  • Good and low-grade coal found together – selective mining so wasteful
  • Land for coal mining is becoming a major issue.
  • There is a tendency to expand opencast mining and discourage underground operation even for better quality coal reserves. This aggravates the land availability problem.
  • There is no competitive coal market
  • Deep mining techniques primitive à high casualty
  • Policy does not allow simultaneous exploration of coal and Coal Bed Methane
  • Efficiency of Indian coal mining is very low – lack of tech + equipment
  • Poor connectivity from mines to consumer locations
  • The distribution of coal is uneven.
  • High ash content and low caloric value.
  • Pilferage at several stages also adds to losses – bad transportation infrastructure.
  • Short life of metallurgical coal.

 

Rat hole Mining:

  • A rat-hole mine involves digging of very small tunnels, usually only 3-4 feet deep, in which workers, more often children, enter and extract coal.
  • According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities.

 

 

Impact of Rat hole mining:

  • The water sources of many rivers, especially in Jaintia Hills district, have turned acidic.
  • The water also has high concentration of sulphates, iron and toxic heavy metals, low dissolved oxygen (DO) and high BOD, showing its degraded quality.
  • The roadside dumping of coal is a major source of air, water and soil pollution.
  • Off road movement of trucks and other vehicles in the area for coal transportation also adds to the ecological and environmental damage of the area.
  • The practice has been declared as unsafe for workers by the NGT.
  • The mines branch into networks of horizontal channels, which are at constant risk of caving in or flooding.

 

 

Petroleum and Mineral Oil:

  • Petroleum (Petra à rock; Oleum à oil) or mineral oil (commonly known as crude oil) is a fossil fuel mined from sedimentary rocks of the earth.
  • Petroleum fuels on burning gives little smoke and leaves no ash. So they are better than coal.
  • It is formed from the remains of ancient marine organisms that were buried in the ocean floor.
  • These remains get converted into hydrocarbons rich fuel by the action of pressure and temperature.
  • Composition à 90 to 95 per cent Hydrocarbons. 5 – 10% organic compounds containing oxygen, nitrogen, sulphur and traces of organometallic compounds.

 

Formation of Petroleum and Mineral Oil

  • All sedimentary rocks do not contain oil.
  • Most of the oil gets collected in the anticlines or fault traps.
  • Oil on a commercial scale is usually found in crests of anticlines [where the sedimentary rock strata are inclined and folded].
  • An oil reservoir must have three prerequisite conditions:

 

1 Porosity (tiny gaps in soil) So as to accommodate sufficiently large amounts of oil; (image)
2 Permeability (allowing liquids or gases to pass through it) To discharge oil and/or gas when well has been drilled;
3 Porous sandstone beds or fissured limestone The porous sandstone beds or fissured limestone containing oil should be capped below by impervious beds [not allowing fluid to pass through].

 

Organization of the Petroleum Exporting Countries (OPEC)

  • The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
  • The mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.
  • Member countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia (the De facto leader), the United Arab Emirates and Venezuela.

Distribution of Petroleum and Mineral Oil in India

  • Most of the oil reserves in India are associated with anticlines and fault traps in the sedimentary rock formations of tertiary times.
  • Mumbai High, the Khambhat Gulf and the Assam are the most productive areas.
  • Process began in tertiary period [3 million years ago].
  • In tertiary period, aquatic life was abundant in various forms, especially the Page minor microscopic forms of flora and fauna.
  • Conditions for oil formation were favourable especially in the lower and middle Tertiary period.
  • Dense forests and sea organisms flourished in the gulfs, estuaries, deltas and the land surrounding them during this period.

 

 

  • Distribution of Petroleum and Mineral Oil in India
    1. On shore distribution
    2. On shore distribution

 

On shore distribution:

  • The oilfields located on the mainland away from the coasts are called on shore field.

 

Brahmaputra valley of North-east India: ·       Oldest oil producing region in country. Digboi oilfield in Assam is the oldest in India.

·       The Naharkatiya field and The Moran-Hugrijan field are other important fields of this region.

Rajasthan Oilfields

 

·       One of the largest inland oil discoveries were made in Banner district of Rajasthan.

·       Other important discoveries à Mangala oil field, Sarswati and Rajeshwari oil fields.

·       These oilfields are the largest on shore oil producing fields of India.

Gujarat Oilfields

 

·       Ankleshwar, Khambhat or Lunej, Ahmedabad and Kalol, Nawgam, Kosamba, Kathana, Barkol, Mahesana and Sanand are important oilfields of Gujarat region.

 

Off shore distribution:

 

Western Coast

·       Mumbai High, Bassein and Aliabet.

·       Mumbai High: rock strata of Miocene age.

·       Sagar Samrat, Bassein: south of Mumbai High.

·       Aliabet: Aliabet island in the Gulf of Khambhat.

 

Eastern Coast

 

·       The basin and delta regions of the Godawari, the Krishna and the Cauvery rivers hold great potential for oil and gas production.

·       The Rawa field in Krishna-Godawari off-shore basin is an important one.

·       The Narimanam and Kovilappal oilfields in the Cauvery on-shore basin are also important.

 

Extent of Oil Bearing Strata in India

  • 1 lakh sq km or 42 per cent of India covered with sedimentary rocks.
  • 10 lakh sq km form marine basins of Mesozoic and Tertiary times.
  • Total continental shelf of probable oil bearing rocks amounts to 2 lakh sq km.
  • The total sedimentary area including both on shore and offshore comprises 27 basins.
  • Mumbai High, the Khambhat Gulf and the Assam are the most productive areas.

Petroleum Refining in India:

  • India’s first oil refinery started working way back in 1901 at Digboi in Assam.
  • 1954: another refinery at Tarapur (Mumbai).
  • Refinery hub and refining capacity exceeds the demand. Excess refined oil and other petroleum products are exported.
  • Oil from wells is transported to nearest refineries through pipelines.
  • India’s current refining capacity of 249.9 million tonnes per annum (2020) exceeds domestic consumption of petroleum products which was 213.7 million tonnes in the previous fiscal.
  • Jamnagar refinery in Gujarat is world’s largest

 

Advantages of Pipeline Disadvantages of Pipeline
·       Ideal to transport liquids and gases.

·       Pipelines can be laid through difficult terrains as well as under water.

·       Economical

·       It needs very little maintenance.

·       Pipelines are safe, accident-free and environmental friendly.

·       It is not flexible, i.e., it can be used only for a few fixed points.

·       Its capacity cannot be increased once it is laid.

·       It is difficult to make security arrangements for pipelines.

·       Detection of leakage and repair is also difficult.

 

 

Oil refineries in India:

 

Crude Oil Pipelines

 

·       Salaya-Mathura Pipeline (SMPL)

·       Paradip-Haldia-Barauni Pipeline (PHBPL)

·       Mundra-Panipat Pipeline (MPPL)

 

 

 

 

 

 

 

Petroleum Product Pipelines

 

·       Guwahati-Siliguri Pipeline (GSPL)

·       Koyali -Ahmedabad Pipeline (KAPL)

·       Barauni-Kanpur Pipeline (BKPL)

·       Panipat-Delhi Pipeline (PDPL)

·       Panipat-Rewari Pipeline (PRPL)

·       Chennai – Trichy – Madurai Product Pipeline (CTMPL)

·       Chennai-Bangalore Pipeline

·       Naharkatia-Nunmati-Barauni Pipeline à first pipeline constructed in India

·       Mumbai High-Mumbai-Ankleshwar-Koyali Pipeline.

·       Hajira-Bijapur-Jagdishpur (HBJ) Gas Pipeline == world’s largest underground pipeline.

·       Jamnagar-Loni LPG Pipeline == longest LPG pipeline in the world.

·       Kochi-Mangalore-Bangalore pipeline

·       Vishakhapatnam Secunderabad pipeline

·       Mangalore-Chennai pipeline

·       Vijayawada-Vishakhapatnam pipeline

 

Petroleum and Mineral Oil – World distribution

  • More than half of the world’s proven oil reserves are located in the Middle East (including Iran but not North Africa).
  • Canada, United States, Latin America, Africa, and the region occupied by the former Soviet Union contains less than 15 percent of the world’s proven reserves. [Reserves are identified quantities of petroleum that are considered recoverable under current economic and technological conditions.]
  • The amount of oil a given region produces is not always proportionate to the size of its proven reserves.
  • For example, the Middle East contains more than 50 percent of the world’s proven reserves but accounts for only about 30 percent of global oil production.
  • The United States, by contrast has less than 2 percent of the world’s proven reserves but produces about 10 percent of the world’s oil.

 

 

 

 

 

Oilfields in Saudi Arabia

 

·       Saudi Arabia has the largest proven oil reserves.

·       Approximately 20 percent of the world’s proven reserves.

·       The discovery that transformed Saudi Arabia into a leading oil country was Al- Ghawār oil field. (still has 70 billion barrels after 60 years of production)

·       Another important discovery was the Saffaniyah offshore field in the Persian Gulf. It is the third largest oil field in the world and the largest offshore.

Oil Fields in Iraq, Kuwait, & Iran

 

·       The Middle Eastern countries of Iraq, Kuwait, and Iran are each estimated to have 25 percent of all proven reserves in the world.

·       These countries have a number of supergiant fields.

·       Al-Burqan oilfield of Kuwait is the world’s second largest oil field.

Oil Fields in Russia

 

·       Russia is thought to possess the best potential for new discoveries.

·       It has significant proven reserves of 5 percent of the world total—and is the world’s leading petroleum producer.

·       There are two supergiant oil fields – Western Siberia and Yenisey Khatanga.

·       Kamchatka peninsula and Sakhalin Island are said to have significant oil reserves.

·       Volga-Caspian Region has many oil and gas fields.

 

 

 

 

 

 

Oil Fields in United States, Mexico, & Canada

 

·       North America has many sedimentary basins.

·       Many oilfields have been found in North Slope region of Alaska and East Texas.

·       United States has produced more oil than any other country.

·       Its proven oil reserves amount to 2 percent of the world total.

·       The Rocky Mountain region contains an enormous amount of petroleum reserve.

·       Mexico has more than 10 billion barrels of proven oil reserves and is one of the top 10 oil producers in the world.

·       Canada has less than 10 billion barrels of proven reserves of conventional liquid oil.

·       But huge deposits of oil sands in the Athabasca region in western Canada bring the country’s total proven oil reserves to approximately 175 billion barrels, behind only oil giants Saudi Arabia and Venezuela.

·       Canada’s largest oil field is off Newfoundland.

 

Oilfields in Venezuela & Brazil

 

·       Venezuela is the largest oil exporter in the Western Hemisphere.

·       210 billion barrels of proven oil reserves (world’s second largest).

·       Most of these reserves are located in the Orinoco belt.

·       Brazil has 14 billion barrels of proven oil reserves (second largest in South America)

Oilfields in United Kingdom

 

·       The United Kingdom is an important North Sea producer, and its proven oil reserves of some three billion barrels are the largest in the European Union.
 

 

 

Oilfields in African Region

 

·       The main oil-producing countries of Africa are: Libya, Algeria, Nigeria and Egypt.

·       Niger delta in Nigeria contains enormous amount of oil.

·       Egypt is self-sufficient in oil production.

·       Algeria is another significant producer of petroleum where much of the national income comes from oil-export.

·       Libya became a consistent producer of petroleum. The total oil reserve of Libya is around 3 per cent of global reserve.

 

 

Strategic Petroleum Reserve (SPR) facility:

  • To ensure energy security, the Government had decided to set up 5 million metric tons (MMT) of strategic crude oil storages at three locations namely, Visakhapatnam, Mangalore and Padur (near Udupi).
  • These strategic storages would be in addition to the existing storages of crude oil and petroleum products with the oil companies and would serve as a cushion during any external supply disruptions.
  • In the 2017-18 budget, it was announced that two more such reserves will be set up Chandikhole in Jajpur district of Odisha and Bikaner in Rajasthan as part of the second phase.
  • The construction and maintenance of the Strategic Crude Oil Storage facilities is being managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle, which is a wholly owned subsidiary of Oil Industry Development Board (OIDB) under the Ministry of Petroleum & Natural Gas.

 

 

Need for strategic oil reserves:

  • In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today.
  • It is unlikely that India’s energy needs will dramatically move away from fossil fuels in the near future. Over 80% of these fuels come from imports, a majority of which is sourced from West Asia. This is a major strategic risk and poses a massive financial drain for an embattled economy and its growing current account deficit.
  • To address energy insecurity, the Atal Bihari Vajpayee government mooted the concept of strategic petroleum reserves in 1998. Today, with India consuming upwards of four million barrels of crude every day (January 2015 figures), the case for creating such reserves grows stronger.

 

Natural Gas:

  • Natural gas is mixture of hydrocarbons primarily Ethane and methane.
  • It is formed during the formation of petroleum so it is often found dissolved in crude oil.
  • Some of the world’s largest gas fields occur in arctic, Russia, Iran and USA.
  • Distribution in India: Reserves found in Krishna Godavari Basin, Brahmaputra valley, Gulf of Khambhat and Barmer district of Rajasthan.
  • Sometimes, pressure of natural gas forces oil up to the surface. Such natural gas is known as associated gas or wet gas.
  • Some reservoirs contain gas and no oil. This gas is termed non-associated gas or dry gas.
  • Often natural gases contain substantial quantities of hydrogen sulfide or other organic sulfur compounds. In this case, the gas is known as “sour gas.”
  • Coalbed methane is called ‘sweet gas’ because of its lack of hydrogen sulfide.
  • On the market, natural gas is usually bought and sold not by volume but by calorific value.

 

Natural Gas Formation

It is similar to the formation of Petroleum. Natural gas was formed millions of years ago when plants and tiny sea animals were buried by sand and rock. Layers of mud, sand, rock, plant, and animal matter continued to build up until the pressure and heat turned them into oil and natural gas.

 

Importance of Natural Gas to India

  • Power stations using gas accounted for nearly 10 per cent of India’s electricity.
  • Despite the country reeling under a power crisis, gas power stations are lying idle due to lack of feedstock.
  • The Government has frozen the construction of new gas plants until 2015- 16 because of gas shortages.
  • Existing plants are operating below capacity on expensive imported liquefied natural gas (LNG).
  • India’s oil reserves are insufficient for its growing energy needs and situation is made worse by policy paralysis which increases the gestation period of the projects.
  • We need to diversify our energy basket through alternate fuels so that we need not have to bear the brunt of external shocks.

 

Distribution of Natural Gas in India

  • KG basin, Assam, Gulf of Khambhat, Cuddalore district of Tamil Nadu, Barmer in Rajasthan etc.

 

Unconventional Hydrocarbons:

  • Conventional reservoirs of oil and natural gas are found in permeable sandstone.
  • Unconventional Gas Reservoirs occur in relatively impermeable sandstones, in joints and fractures or absorbed into the matrix of shales [Shale is a Sedimentary Rock], and in coal
  • Given current economic conditions and state of technology, they are more expensive to exploit.
  • Example: Tight gas, shale gas, and coal- bed methane.

 

 Coal Bed    Methane: ·       India has the fifth largest proven coal reserves in the world.

·       The CBM resources in the country are about 92 TCF (2600 BCM) in 12 states of India.

 

Shale Gas:

 

·       It is a natural gas formed from being trapped within shale rocks.

·       ONGC estimates 187.5 Trillion Cubic Feet (TCF) of shale gas in Cambay, KG, Cauvery, Ganga and Assam basins in India.

 

 

Gas hydrate:

 

·       A naturally occurring, ice-like combination of natural gas and water found in the world’s oceans and Polar Regions.

·       US Geological Survey states that India has the second largest gas hydrates in World.

·       The Krishna Godavari, Cauvery and Kerala basins alone contributing 100-130 trillion cubic feet of estimated reserves.

 

Hydrocarbons Vision – 2025

The Hydrocarbons Vision-2025, presented in the year 2000, laid down the framework which would guide the policies relating to the hydrocarbons sector for the next 25 years. It includes:

  • To assure energy security by achieving self-reliance through increased indigenous production and investment in equity oil abroad.
  • To enhance quality of life by progressively improving product standards to ensure a cleaner and greener India.
  • To develop hydrocarbon sector as a globally competitive industry which could be benchmarked against the best in the world through technology upgradation and capacity building in all facets of the industry.
  • To have a free market and promote healthy competition among players and improve the customer service.
  • To ensure oil security for the country keeping in view strategic and defense considerations.

 

Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016 which has the four main facets:

  • Uniform license for exploration and production of all forms of hydrocarbon,
  • An open acreage policy,
  • Easy to administer revenue sharing model and
  • Marketing and pricing freedom for the crude oil and natural gas produced.

Non-conventional Energy Resources:

  1. Nuclear Energy:
  • Nuclear energy has emerged as a viable source in recent times.
  • Core Raw materials for nuclear energy Uranium, Thorium, Heavy water, Zirconium, Helium.

 

    

      Uranium

·       Uranium is a silvery-gray metallic radioactive chemical element. It is only naturally formed in supernova explosions.

·       Uranium, thorium, and potassium are the main elements contributing to natural terrestrial radioactivity.

 

 

States Mineral rich regions – Uranium
Jharkhand Jadughoda, Bhatin, Narwapahar, Turamdih
Meghalaya Domiasiat, Wahkyn
Andhra pradesh Tumallapalle (Nalgonda)

Lambapur- peddagattu

Karnataka Gogi
Rajasthan Rohil

 

 

List of Nuclear Power Plants in India

Tarapur Operator: Nuclear Power Corporation of India Limited (NPCIL

Location: Maharashtra

Type: Boiling water reactor (BWR) & Pressurized heavy water reactor (PHWR)

Total capacity (MW): 1,400

Rawatbhata

 

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Rajasthan

Type: Pressurized heavy water reactor (PHWR)

Total capacity (MW): 1,180

 

 

Kudankulam

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Tamil Nadu

Type: Water-Water Energetic Reactor (VVER)-1000

Total capacity (MW): 2,000

List of Hydro Power Plants in India

 

 

Kaiga

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Karnataka

Type: Pressurized heavy water reactor (PHWR)

Total capacity (MW): 880

Operational-nuclear-power-plants-in-India-2020

 

 

Kakrapar

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Gujarat

Type: Pressurized heavy water reactor (PHWR)

Total capacity (MW): 440

List of Indian States in Mineral Wealth

 

Kalpakkam

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Tamil Nadu

Type: Pressurized heavy water reactor (PHWR)

Total capacity (MW): 440

 

Narora

Operator: Nuclear Power Corporation of India Limited (NPCIL)

Location: Uttar Pradesh

Type: Pressurized heavy water reactor (PHWR)

Total capacity (MW): 440

 

Distribution of Uranium Across the World

  • Largest viable deposits are found in Australia, Kazakhstan, and Canada.
  • Olympic Dam and the Ranger mine in Southern Australia are important mines in Australia.
  • High-grade deposits are only found in the Athabasca Basin region of Canada.
  • Cigar Lake, McArthur River basin in Canada are other important uranium mining sites.
  • The Chu-Sarysu basin in central Kazakhstan alone accounts for over half of the country’s known uranium resources.

 

    

     

 

 

    Thorium

·       Thorium is a chemical element with symbol Th and atomic number 90.

·       It is one of only two significantly radioactive elements that still occur naturally in large quantities.

·       Thorium-232 is the most stable isotope of thorium and accounts for nearly all natural thorium, with the other five natural isotopes occurring only in traces.

·       Thorium is estimated to be about three to four times more abundant than uranium in the Earth’s crust and is chiefly refined from monazite sands.

·       Thorium is predicted to be able to replace uranium as nuclear fuel in nuclear reactors, but only a few thorium reactors have yet been completed.

·       United States, Australia, and India have particularly large reserves of thorium.

Sources in India

India has largest reserve

Sources in the world
Kerala beach sand: monazite Brazil
Coastal areas of Tamil Nadu, Odisha, Andhra Pradesh. Australia
USA
Egypt

 

Renewable Energy

  • India has set an ambitious target of reaching 175 GW of installed capacity from renewable energy sources including 100 GW from solar and 60 GW from wind by the year

  

Why renewable energy?

  • Environmental concern:
    • India is currently the world’s third largest carbon emitter
    • According to the Copenhagen Accord, which India signed along with 167 other countries in 2009, 80 % of the world’s proven coal, oil and natural gas reserves must remain in the ground in order to avoid warming the planet beyond the internationally agreed limit of 2°C rise in average temperature. Same also applies to INDC and Green India Mission.
    • So, from an ecological point of view, renewable energy must come up on a large scale and not as isolated stories of miracles.

  • Economic point of view:
    • Coal reserves are depleting and getting expensive.
    • Many major plants in the country are facing severe coal shortages.
    • In the last fiscal, India imported over 150 million tonnes of the fossil fuel, widening the country’s fiscal deficit to further dangerous levels.
    • Renewable energy will address power shortage challenges, which cost Rs 4.2 lakh crore a year.

 

  • From a social point of view:
    • The government had promised to deliver electricity to the entire population.
    • But considering that providing electricity to all means providing it for 24 hours of 365 days and not four hours in a day, the government has missed the target by a long shot.
    • Renewable energy is the need of the hour and it is capable of delivering what India needs.
Break up of Renewable Energy Installed Capacity as on 31.01.2020 (in MW)

  • Small Hydro Project (≤ 25MW): 4676.56MW
  • Biomass Power: 9861.31 MW
  • Waste to Energy: 139.80 MW
  • Wind Power: 37607.70 MW
  • Solar Power: 34035.66 MW
  • Total Capacity: 86321.03 MW

Key Issues with Renewable Power Generation

  • Regional Concentration of Renewable Energy Potential
    • Because Renewable Energy is location-specific and not evenly distributed, there are problems on scaling up grid connected renewable power.

 

  • Insufficiency and High cost of Evacuation Infrastructure
    • Utilization of variable Renewable Energy requires a robust transmission infrastructure from remotely located generating plants to the load centers.
    • This requires infrastructure such as roads etc as well as land for installation.

 

  • Financial Barriers
    • Renewable Energy technologies require large initial capital investment.
    • These technologies need to be supported until technology breakthroughs and market volumes generated are able to bring the tariff down at the grid parity level.

  • Low penetration of renewables for urban and industrial applications

 

  • Policy interventions to incentivize creation of financeable business models for off-grid renewable sector.
    • Off-grid renewable sector is much more competitive with conventional power as it avoids investment in transmission to remote location.
    • e.g. Rice Husk gasifiers-based electricity generation is one such model.

 

1. Solar Power

  • India lying in tropical belt has an advantage of receiving peak solar radiation for 300 days, amounting 2300-3,000 hours of sunshine equivalent to above 5,000 trillion kWh.

Advantages:

  • Solar Energy is available throughout the day which is the peak load demand time.
  • Solar energy conversion equipment’s have longer life and need lesser maintenance and hence provide higher energy infrastructure security.
  • Low running costs & grid tie-up capital returns (Net Metering).
  • Unlike conventional thermal power generation from coal, they do not cause pollution and generate clean power.
  • Abundance of free solar energy in almost all parts of country.
  • No overhead wires- no transmission loss

 

Government initiatives:

  • Ministry of new and renewable energy is the nodal agency to tackle India’s renewable energy issues.
  • National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenge.
  • The Indian Renewable Energy Development Agency (IREDA) is a Non-Banking Financial Institution under the administrative control of this Ministry for providing term loans for renewable energy and energy efficiency projects.
  • National institute of solar energy is created as autonomous institution under MoNRE is apex body for R&D.
  • Establishment of solar parks and ultra-major solar power project and enhancing grid connectivity infrastructure.
  • Promotion of canal bank and canal tank solar infrastructure.
  • Sustainable rooftop implementation of Solar transfiguration of India (SRISTI) scheme to promote rooftop solar power projects in india.
  • Suryamitra programme to prepare qualified workforce.
  • Renewable purchase obligation for large energy consumer customers.
  • National green energy programme and green energy corridor.
  • International solar Alliance:
    • The International Solar Alliance (ISA) is an alliance of more than 120 countries initiated by India, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn, now extended to all members of UN.
    • The Paris Declaration establishes ISA as an alliance dedicated to the promotion of solar energy among its member countries.
    • When the ISA Framework Agreement entered into force on December 6th, 2017, ISA formally became a de-jure treaty based International Intergovernmental Organization, headquartered at Gurugram, India.
  • Objectives: The ISA’s major objectives include global deployment of over 1,000GW of solar generation capacity and mobilization of investment of over US$ 1000 billion into solar energy by 2030.

 

2. Wind energy:

  • India is at 4th position in term of wind power installed capacity after China, USA and Germany.
  • According to the National Institute of Wind Energy, India’s installable wind energy potential is 302 GW with towers of a height of 100 meters.

Challenges:

  • Land Availability: The prices of ideal sites for projects have increased after a push for renewable energy.
  • Poor transmission and unavailability of grid for power transmission have impacted the growth of wind
  • energy sector.
  • Lack of finance capacity: According to a study by Indian Renewable Energy Development Agency, India needs around INR 17.5 trillion (US $264 billion approximately), in financing to achieve its target of 160 gigawatts of solar and wind energy by 2022. This could be solved by tapping green financing mechanism present in market like Green Bond etc.
  • Non-payment to developer due to poor financial health of public electricity distribution utilities.

 

Government Steps to promote wind energy:

  • National Offshore Wind Energy Policy
  • Guidelines for Development of Onshore Wind Power Projects: To facilitate development of wind projects in an efficient, cost effective and environmentally benign manner.
  • Renewable Purchase Obligation specified in the Electricity Act, 2003 has given fillip to the enhancement of wind-generator in India.
  • Green Energy Corridors Project: Power evacuation and transmission infrastructure for renewables is being augmented as part of the “Green Energy Corridors” project.

 

 

 

 

 

Advantages of      offshore wind power over the onshore wind power

 

·       Greater area available for setting up large projects: one of the primary reasons for moving towards off-shore projects is the lack of suitable wind turbine sites on land.

·       Higher wind speed: Therefore, the offshore wind power’s electricity generation is higher per amount of capacity installed.

·       Consistent wind speed: the effective use of wind turbine generating capacity will be higher at sea than on land.

·       Less visual impact: As these sites are located far from land they have less visual impact which helps with public acceptance issues.

·       Close to load centres: The offshore wind farms are usually located near to the cities and load centres thus transmission losses are minimized.

·       Environmental impact: low global warming potential per unit of electricity generated, comparable to that of onshore wind farms.

 

 

Challenges:

  • Cost: Costs for foundations, installation, electrical connections and operation and maintenance (O&M) are a large share of the total for offshore installations compared to onshore wind farms.
  • Sustained high-speed wind, high humidity and salt water make every aspect of installation and operation much more difficult, time-consuming, more dangerous and far more expensive than sites on land.
  • Data: the data required for the calculation of off- shore wind potential and identification of suitable sites is not adequately available. Wind resource map consists of the wind speed and wind density at certain levels above the sea.

 

3. Hydro Power Sector:

    • India is endowed with large hydropower potential of 1,45,320 MW of which only about 45,400 MW has been utilized so far. Only about 10,000 MW of hydropower has been added in the last 10 years.

 

Issues faced by hydropower sector:

  • Lack of enabling infrastructure – such as roads, bridges to access remote areas where such potential sites are available.
  • Delay due to land acquisition – for dam, power house etc.
  • Delay due to environment and forest clearances.
  • Rehabilitation and Resettlement – which invite opposition from locals for employment, extra compensation etc. It also creates law and order problems like blasting, muck disposal.
  • Cultural/ Religious Issues – sentiments attached with rivers i.e religious and spiritual beliefs.
  • Political will – lacks political traction due to long gestation period, Interstate issues, especially over Riparian rights. E.g. Mullaperiyar Dam (between Kerala and Tamil Nadu)
  • High Tariff of Hydro Projects – as compared to other sources of power (conventional as well as renewable sources) mainly due to construction of complex structures which have long gestation period, unavailability of loans of lower interest rate & longer tenures, high R&R cost, infrastructure etc.
  • Financing Issues – High cost of Finance and lack of long tenure funding for hydropower projects.
  • Levying of water cess by the States – e.g. J&K

 

Hydro Energy Sector: Initiatives So Far

  • National Electricity Policy, 2005: The policy lay emphasis on full development of the feasible hydro potential in the country.
  • Hydro Power Policy, 2008: Under this transparent selection criteria to be followed by the States for awarding sites to private developers.
  • National Rehabilitation & Resettlement Policy, 2007: It aims to minimize displacement and addressing special needs of Tribal and vulnerable sections who get displaced due to Developmental Projects.
  • Tariff Policy, 2016: Policy aims to promote Hydro power generation including Private sector participation to provide adequate peaking reserves, reliable grid operation and integration of variable Renewable Energy sources.

 

4. Energy security

  • It is defined as the uninterrupted availability of energy sourcesat an affordable price.

 

Why need energy security?

  • India imports 80 percent of its oil needs and is the third largest oil consumer in the entire world.
  • India’s energy consumption is expected to grow 4.5 percent every year for the next 25 years.
  • Recently due to high International Crude Oil Prices, Current Account Deficit (CAD) inflated because of higher cost of oil import, raising concerns about long term economic stability in India, highlighting importance of energy security.

 

Challenges for India’s Energy Security

  • Policy Challenges: Failure to attract international investment in domestic hydrocarbon exploration
  • Accessibility Challenge: Presently, 304 million Indians do not have access to electricity and around 500 million Indians are dependent on solid biomass for cooking.
  • Infrastructure and skill related challenges: Lack of skilled manpower and poorly developed infrastructure for developing conventional and unconventional energy. India lacks transportation infrastructure for making energy accessible
  • Economic challenges: Rising fuel subsidies, rising CAD creates difficult conditions for economy.
  • External Challenges: India’s fragile energy security is under severe pressure from its rising dependence on imported oil, regulatory uncertainty, international monopolies and opaque natural gas pricing policies

 

Nationally Determined Contributions as per the Paris Accord

  • As a part of Nationally Determined Contributions as per the Paris Accord on Climate Change, India has made a pledge that by 2030, 40% of our installed power generation capacity shall be from non-fossil fuel sources and also by 2030, reduce emission intensity of GDP by 33-35 % from 2005 level.
  • Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy consumption has increased the energy demand of the country.
  • In 2015, India decided that 175 GW of renewable energy capacity will be installed by the year 2022.
    • This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power.
  • The substantial higher capacity target will ensure greater energy security, improved energy access and enhanced employment opportunities

 

Statistics and Fact related energy sector –

  • By the year 2040, India’s electricity demand will rise 5 times over 2012 levels.
  • Clean energy (like renewables, nuclear and hydro) may account for 5% of electricity produced by 2040 (from 3.7% in 2012),
  • Greater efficiency and technology can cut energy demand in 2040 by 6%;
  • Up to 90% of this reduction is possible in transport, industry and construction.
  • New buildings codes could cut energy use by 50% in new construction.
  • If most Indian vehicles were electric by 2030, pollution levels in cities could drop 80%-90%, and India could save $100 billion, a sum over two times larger than the current defence budget
  • By 2040, India’s population is predicted to increase to 1.6 billion, and the rate of urbanisation (projected average rate of change of the size of the urban population over a given period of time) of this population will be 47%.
  • The share of manufacturing in the country’s gross domestic product will double from its current levels to 30%.
  • As of 2017, nearly 25% of the population is still without access to electricity and 40% without access to clean cooking fuel.

 

India’s Demand for Energy

  • The country’s demand for energy is set to double by 2040, and its electricity demand may triple.
  • Indian oil consumption is expected to grow faster than that of any other major economy (including China). This makes further improving energy security a key priority for India’s economy.
  • India’s oil demand is expected to reach 6 million barrels per day (bpd) by 2024 from 4.4 million bpd in 2017, but its domestic production is expected to rise only marginally, making the country more reliant on crude imports and more vulnerable to supply disruption in the Middle East.
  • India’s oil refining capacity is expected to rise to 5.7 million bpd by 2024, making it a very attractive market for refinery investment.