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Mumbai , Nov. 13

THE Planning Commission has told the Union Government that it should look for equity in coalmines abroad, in addition to its ongoing oil equity forays. Although India is buying equity in oil and gas fields abroad, estimates show coal may be the most cost-effective and abundantly available energy source in the coming years.

"The commission has told the Government of the need to buy coal equity in addition to oil equity and Ministries are looking into it," said Mr Surya Sethi, Adviser (Energy), Planning Commission. India could consider coalmines in Australia, Indonesia, South Africa and even US where vast amounts of coal lie unused.

Mr Sethi said, as per Government of India estimates, by year 2020 oil and natural gas will meet only 44 per cent of India's requirement compared to 50 per cent by coal. Nuclear and hydel energy would form 2.5 per cent and 3.5 per cent.

World oil production is expected to peak by 2015-20. Prices may shoot up making oil uneconomical for India, one of the world's fastest growing economies. World's known coal reserves on the other hand, are three times higher than known oil and gas reserves.

Even today, thermal plants are the most economical source of power in India especially if coal is imported, Mr Sethi said at an energy conference held here.

Better quality imported coal costs $30 per tonne including freight compared to Indian coal which becomes uneconomical if moved to a power plant more than 800 km away. As a result India has more pithead plants.

Although India claims to have 240 billion tonne of coal reserves, of these only 8 billion tonne can be mined. In 2020, India's coal needs will go up to 200 million tonne per year compared to 30 million tonne today.

"If more coal is imported, thermal plants can be set up along the coast. We will need better ports and also clean coal technology. Also, there may be increased reliance on piped natural gas from countries such as Bangladesh and Myanmar and on imported LNG," Mr Sethi said.

Natural Gas may form only 14 per cent of our energy needs in 2020 compared to 8.6 per cent today.

"The reason for this is that 14 per cent gas share in energy needs should translate into four times higher gas consumption. Which in turn would mean having 16 to17 more gas fields the size of Reliance's find on the East coast, in addition to today's available gas reserves," Mr Sethi said.

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