Coal remains the major source of primary energy worldwide. The share of coal in world energy consumption is about 26 percent. It is as high as 78 percent in South Africa followed by China (73 percent), Poland (68 percent). Even in developed countries like USA and Australia, coal commands a share of 25 percent and 44 percent in primary energy consumption respectively). India is the third largest coal producing country in the world and accounts for 7 percent of total world production in 2000-01. Resource-wise, India is among top five countries of the world. It holds around 8 percent of the world's proved coal resources. Coal dominates the energy mix in India, contributing about 70 percent of the total primary energy production. Considering the limited reserves of petroleum and natural gas, eco-conservation restrictions in hydel projects and geo-political perception of nuclear power, coal will remain to occupy center stage in India energy scenario. With deterioration of power grade coal, the emission of green house gas is going to increase, thereby stressing the need of using beneficiated low ash coal for protection of global environment. Further recent stipulation of MoEF imposing restriction on use of high ash coal at distant powerhouses and those at sensitive localities and critically polluted areas have made the aspect of marketing of coal more challenging. This has necessitated a long term strategy for improving the quality of coal in the light of national environment policy'. Globlisation of Indian market and thereby liberalization of Indian economy in mid-90s, which opened the path for imported coal has posed a threat to the market of indigenous coal. Despite India's large reserves of coal, there has been an increase in coal imports. Increasing imports call for measures to improve the productivity in coal mines and quality of coal by coal beneficiation. In 2000-01, import of coal was about 20.93 Mt, which is likely to increase due to upcoming enhancement of capacity of berths at different seaports. Improving the quality of coal by beneficiation is more relevant in the present scenario of open market, where we need to market our coal rather simply supplying run of mine (r.o.m.) coal to the linked consumers.
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