Refining and Marketing 8.21.1 The total refining capacity in the country increased from 45.55 million tonnes at the end of the Sixth Plan to 51.85 million tonnes at the end of the Seventh Plan. The net imports of crude oil and petroleum products during the Plan period were 85.13 million tonnes and 11.37 million tonnes respectively. The middle distil-
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lates like HSD and kerosene constituted the bulk of the product imports.
Eighth Plan Programme 8.22.1 Based on the experience of the Seventh Plan, the major areas of concern during the Eighth Plan will be: (i) the need to restrict oil imports to a reasonable level; (ii) the need to eliminate the flaring of natural gas at the earliest, in any case not later than 1996-97 and (iii) accelerating the pace of indigenisation of the exploration and development activity. The programme for the Eighth Plan will accordingly be as follows.
Demand for Petroleum Products 8.23.1 The unrestricted demand for petroleum products in the terminal year of the Eighth Plan i.e. 1996-97 has been estimated at 81.19 million tonnes. Against this, as explained in the following paragraphs, the level of crude oil production from the different basins may at best reach 47.08 million tonnes by that year. This will be equivalent to about 44 million tonnes of products and will leave a gap of 37.2 million tonnes to be covered by imports. In other words, the level of oil imports will increase from 29.4 million tonnes in 1991-92 to 37.2 million tonnes by 1996-97, representing an increase of 26.5% over the 5-year period.
8.23.2 It is not going to be easy to find sufficient foreign exchange resources to sustain such a sizeable increase in the quantum of oil imports. Moreover, any further increase in the quantum of oil imports will correspondingly increase the vulnerability of the economy to the uncertainties in the external oil markets. It will be prudent to manage the oil budget so as to restrict the level of oil imports, as far as possible, to the level obtaining in 1991-92. This will call for the following strategy.
(a) Improve the efficiency of use of petroleum products in different sectors of the economy.
(b) Promote demand management programmes aimed at reducing the oil- intensity of the consuming sectors (e.g. shifting freight movement from road to rail, increased dependence on public transportation etc.)
(c) Encourage substitution of petroleum products by coal, natural gas, electricity etc.
Efforts should be made during the Eighth Plan to achieve a demand reduction of at least 6-7 million tonnes through these measures in the year 1996-97.
8.23.3 Simultaneously, it will also be necessary to maximise indigenous production of crude oil. Efforts should be made by the oil producing agencies to realise an additional production of 1.5 to 2.0 million tonnes per year by 1996-97 by rehabilitating sick and idle wells and other appropriate measures. Private sector investments in oil exploration and development activity during the Eighth Plan period is- also expected to yield an additional production of 0.75 million tonnes per year by 1996-97. This will imply total indigenous crude oil production of about 50 million tonnes in 1996-97.
Exploration and Reserve Accretion 8.24.1 As stated earlier, the exploration strategy for the Eighth Plan envisages intensive exploration in Category I basins, specially in parts adjacent to the known producing areas and the blocks still inadequately explored. Emphasis will he laid on exploration in new Category I basins (Krishna-Godavari, Cauvery and part of Assam- Arakan). An optimal mix of intensive exploration (following trends) and extensive exploration (for identifying new target areas) will be adopted in zones where encouraging leads have been obtained - e.g. Rajasthan and Kutch (Offshore) basins.
8.24.2 Limited exploratory drilling with emphasis on close-grid seismic data acquisition will be taken up in other Category II and III basins. In addition, a phased exploration programme will be initiated in the deeper continental shelf (more than 200 metres depth).
8.24.3 Indian participation in overseas exploration ventures will be substantially increased in the Eighth Plan.
8.24.4 There will be greater emphasis in the Eighth Plan on 3-D seismic surveys. With progressive technological upgradation of 3-D survey methodology, this will have the advantage of marginally reducing the exploratory drilling efforts needed for delineating new structures.
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Total exploratory drilling in the Eighth Plan is envisaged to be 3041.83 thousand metres i.e. 31 % more than the level of achievement in the Seventh Plan.
8.24.5 Total geological and recoverable reserve accretion during the Eighth Plan is expected to be 980.60 million tonnes and 276.30 million tonnes respectively in the case of oil and 344.40 billion CuM and 178.10 billion CuM respectively in the case of natural gas. These targets are exclusive of reserve accretion, if any, on account of the exploratory effort to be put in by private contractors. The following are the targets set out for exploration in the Eighth Plan.
Development Drilling 8.25.1 The total development drilling metreage of 3809.36 thousand metres planned for the Eighth Plan involves a step up of 37% over the Seventh Plan achievement of 2774.12 thousand metres. The development and production strategy during the Eighth Plan will involve (a) drilling of infill wells for improved recovery , (b) maintenance of production through faster liquidation of sick wells, (c) adoption of suitable Enhanced Oil Recovery (EOR) methods, (d) stimulation of poor producers, (e) accelerated development of new fields and (f) placing new fields in isolated areas on Early Production System (EPS).
Production of Crude Oil and Natural Gas 8.26.1 Against an oil production level of 34.09 million tonnes reached in the terminal year of the Seventh Plan, the corresponding production level in the terminal year of Eighth Plan is targeted to be 50 million tonnes. The actual cumulative oil production in the Seventh Plan and the expected cumulative production in the Eighth Plan are 157.13 million tonnes and 197.32 million tonnes respectively.
8.26.2 So far as natural gas is concerned, the terminal year production will increase from 16.99 billion CuM in the Seventh Plan to 30.17 billion CuM in the Eighth Plan. Necessary infrastructural facilities such as augmentation of the capacity of existing pipelines, adequate compensation and evacuation facilities etc. will be created to ensure that flaring of associated gas is minimised and any produced gas is fully utilised.
8.26.3 The production targets for crude oil and natural gas are indicated in Annexures 8.1 and 8.2.
Technological Upgradation in Oil Exploration and Production 8.27.1 For enhancing the capabilities of finding hydrocarbons at an optimum cost, the oil companies will continue to adopt the latest techniques and equipment in horizontal and deep water drilling, sub- sea completions and laying of pipelines, installation of Early Production Systems (EPS), the use of floating process platform in offshore areas, exploration of heavy oil deposits, adoption of suitable Enhanced Oil Recovery (EOR) techniques for tertiary recovery from depleting wells etc.
8.27.2 There is need to adopt improvements in refining technology for maximising the yield
Onland Seismic Survey ONGC OIL
2-D (a) Departmental (SLK) 101455 12400
(b) Contractual (SLK) 15070 6650
3-D (a) Departmental (Sq.Km) 3043 200
(b) Contractual (Sq.Km) 45 600
Offshore Seismic Survey
2-D Departmental (LK ) 93000 -
3-D Departmental (LK) 39000 209.0
Exploratory Drilling(000 meters)
Onland 2052.70 209.0
Offshore 768.13 12.0
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of middle distillates for meeting the requirements of the country.
Indigenisation of Oil Exploration and Production 8.28.1 While the dependence on imports in the high technology area of exploration and production will continue, all efforts towards progressive indigenisation of oil field equipment will be supported by the ONGC and OIL. The foreign exchange content of offshore drilling projects still ranges between 65 and 75 per cent of the total cost despite the efforts made by ONGC and OIL over the years to indigenise their activity to the maximum extent feasible. During the Seventh Plan, indigenisation was achieved in the manufacture of onland and offshore drilling rigs (jack-ups and drilling ships), well platforms, offshore supply vessels and certain types of casings. The efforts towards indigenisation will continue during the Eighth Plan. The indigenisation process cannot however, be pushed beyond a certain level due to the very low demand for certain items and the rapid obsolescence involved in the "high - tech" equipment used in the oil industry. The thrust during the Eighth Plan for indigenisation will be development of adequate capacity for all sizes of casing pipes, indigenous capability for services like mud-logging, cementation, well stimulation and equipment inspection services. Indian companies and joint venture companies will continue to be encouraged to provide oil and gas field services in future.
Oil Refining and Marketing 8.29.1 By the end of the Tenth Plan, the demand for oil products is estimated to reach a level of 125 million tonnes. In determining the refining capacity that needs to be added during the Eighth and Ninth Plan periods, due consideration will be given to the region-wise pattern of demand, the sources of indigenous crude oil and optimal choices regarding the location and technology of new refining capacity.
8.29.2 Against these projections, the indigenous refining capacity at the end of the Seventh Plan was 51.85 million tonnes. Considering that indigenous crude availability in 1996-97 has been targeted at 50 million tonnes and that in addition to this quantity, a minimum of about 15 million tonnes of imported crude oil of -appropriate quality needs to be processed specially to meet the domestic requirements of lubricants and bitumen, it is necessary to augment the refining capacity to about 65 million tonnes by 1996-97. Any further addition to refining capacity will depend upon the relative economics of import of crude oil vis-a-vis petroleum products. This needs to be evaluated carefully in the context of the prevailing uncertainties in the world oil market, the progress of inter-fuel substitution and other relevant factors.
8.29.3 In planning additions to the refinery capacity, the highest priority will be accorded to cost-effective debottlenecking schemes and lowcost expansions. An additional refining capacity of 12.2 million tonnes can be expected from such expansions. These projects are refinery expansions at Koyali (3 million tonnes), Cochin (3 million tonnes), Madras (0.9 million tonnes), Vizag (2.5 million tonnes), Bongaigaon (1 million tonnes), Barauni (0.5 million tonnes), Guwahati (0.15 million tonnes), Digboi (0.65 million tonnes) and Bombay (0.5 million tonnes). Added to this, new refineries at Cauvery (0.5 million tonnes), Mangalore (3 million tonnes) and Karnal (6 million tonnes) will also get commissioned during the Eighth Plan. Advance action on any additional grassroot refining capacity to be commissioned in the Ninth Plan needs to be initiated during the Eighth Plan. However, keeping in view the heavy investments required for setting up new refineries, such proposals will have to be carefully evaluated in relation to the relative economics of import of crude vis-a-vis petroleum products in the context of the trends in the world oil market. In such an evaluation, security of supplies and the future prospects of availability of crude oil and products are important factors that need to be considered.
8.29.4 In the choice of technology for secondary processing in the refining sector, due consideration will be given to the techno- economic implications of different processes like FCC, Hydro-cracker etc. in relation to the need to maximise the production of middle distillates.
8.29.5 In the refinery sector, priority will be given to energy use optimisation, energy conservation and schemes for quality improvement of MS/HSDO. Efforts will be made to reduce the technical losses in the refining process. It is also proposed to optimise the product
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yield pattern in the various refineries through the use of digital process control systems.
8.29.6 In view of the increase in the demand for petroleum products, expansion of various facilities for the distribution and marketing of petroleum products will be required. Some of the existing pipelines will have to be extended, while some pipelines like Koyali-Ahmedabad pipeline will have to be expanded. There is also need to construct new product pipelines wherever found economical. Major ports like Paradeep and minor ports such as Kakinada, Karwar etc. will need to be developed in order to cater to increased traffic involving imports/coastal movement.
8.29.7 In the context of the severe limitations on resources, it will not be feasible to take up all these schemes in the public sector. It is, therefore, imperative to attract private investments to the maximum extent possible in refining and marketing operations.
Research and Development 8.30.1 The Eighth Plan will place considerable emphasis on R & D projects aimed at indigenisation and improving the overall efficiencies of this sector through technological upgradation and cost optimisation.
Oil and Gas 8.30.2 The ONGC's R & D efforts are backed by five R & D institutes. Two more institutes are in the process of being set up. The institutes are briefly described below.
(i) The Keshava Dev Malviya Institute of Petroleum Exploration, Dehradun is engaged in various research activities in the field of hydrocarbon exploration.
(ii) The Institute of Reservoir Studies, Ahmedabad, concentrates on development plans of new fields, studies on Enhanced Oil Refinery (EOR) methods including designing and implementation of EOR projects, improving the well productivity, and recovery of sick wells and gas.
(iii) The Institute of Drilling Technology, Dehradun deals with the problems of drilling, improvement of drilling techniques specially for deep wells, prevention and control of blowout, directional and horizontal drilling of wells etc.
(iv) The Institute of Production Technology, Bombay examines problems related to well design, well repair techniques, underwater production systems, process engineering, transport of oil and gas etc.
(v) Institute of Engineering and Ocean Technology, Bombay deals with problem areas connected with offshore systems, such as engineering for offshore structures, corrosion, deep sea monitoring systems, barge mounted processing systems, logistic systems etc.
(vi) A separate institute is being set up in Jorhat to carry out studies in two specific areas viz. bio-technology and its application to crude oil production and treatment and geo-tectonics which deals with the tectonic framework of basins evolution.
(vii) The Institute of Petroleum Safety and Environment Management is being set up at Goa and this Institute will look into aspects relevant to safety and environment management in oil exploration and development.
Oil India Ltd. (OIL) 8.30.3 OIL has R & D facilities at Duliajan which deal with problems related to production and development drilling, application of EOR methods, well stimulation techniques and environmental and pollution control measures.
Refining & Marketing 8.30.4 In the case of refining processes and product development, areas for study have been identified after considering the product needs and product development requirements in the country. In addition, pilot plant studies for deasphalting at Madras Refineries Ltd. (MRL), crude test distillation facilities at Cochin Refineries Ltd. (CRL), Fludized Catalytic Cracker at CRL, dearomatisation of ATF/SKO at Hindusthan Petroleum Corporation, Bombay have also been planned.
8.30.5 Studies will be commissioned on product development and application with particular
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reference to lubricants and automotive fuels. Indigenous development of additives will also be included in the R & D programme.
8.30.6 The Centre for High Technology (CHT), which was established during the Seventh Plan, has identified several areas for R & D works including project-oriented basic research and fundamental research work. These studies will be undertaken at the different R & D centres of the companies under the overall coordination of CHT.
Natural Gas Utilisation Policy 8.31.1 The use of natural gas should be consistent with the need to ensure long run resource conservation and optimum utilisation of the limited hydrocarbon resources. The different fractions of natural gas can yield valuable chemical products. Natural gas can also be used for power generation. While gas- based power generation projects have the advantage of a short gestation period, it is desirable in the long run to promote the use of natural gas as a feedstock for producing valuable chemical products. It is necessary to carefully analyse the short and long term implications of alternative uses of gas and evolve a policy of inter-sectoral allocation of gas consistent with the objective of maximising its value to the economy.
8.31.2 Production of LPG from natural gas will also be maximised to reduce its import.Facilities for city gas distribution will be set up to replace mainly kerosene oil and LPG, in areas where natural gas supplies are easily available like Bombay city, Baroda and Ahmedabad. The use of compressed natural gas (CNG) for substituting motor spirit and HSDO in the transport sector will be promoted. Pilot plants will also he commissioned for the conversion of natural gas into middle distillates for assessing the technoeconomic feasibility of the process. All public sector organisations will be encouraged to intro- duce schemes to conserve petroleum products, use natural gas wherever feasible and to improve the efficiency of equipment and operational processes.
8.31.3 Possibilities of substituting natural gas for petroleum products, such as naphtha will also be explored and utilised to the extent feasible.
8.31.4 It should be mentioned, however, that the latest projections regarding the availability of natural gas fall short of the earlier expectations. This calls for a close examination of the production profile of natural gas in the case of different basins and a periodical review of the supply-demand scenario. This is to ensure that the supply and utilisation of natural gas can be planned in the long-run in an integrated and optimal manner.
Outlay 8.32.1 The Eighth Plan outlay for petroleum sector is Rs .24,000 crores as compared to Seventh Plan expenditure of Rs. 16025.22 crores. These figures are exclusive of the outlays for petrochemicals. The outlay includes Rs. 20,000 crores for exploration and production and Rs. 4,000 crores for refining and marketing.
COAL AND LIGNITE 8.33.1 Coal and lignite are major energy resources available in the country and the development of these resources constitutes an important element of the long-term energy strategy. Both the development and management of the coal industry were mostly in the private sector till the industry was nationalised in early seventies. The industry was reorganised in 1975 with the creation of Coal India Ltd. (CIL) as a holding company. The Singareni Collieries Company (SCCL), however, continued as a jointly owned company of Andhra Pradesh State Government and the Central Government with the former continuing to have the major share holding. The development of lignite is being looked after by a seprate centrally owned company viz. Neyveli Lignite Corporation (NLC).
Review of the Seventh Plan 8.34.1 The development of the industry in the Seventh Plan and during 1990-91 and 1991-92 and the priority areas that should receive attention during the Eighth Plan are discussed below.
Coal Resource Inventory and Allied Exploration 8.34.2 Systematic surveys during the Seventh Plan increased the coal reserves of the country from 156.0 billion tonnes at the beginning of the Plan to 186 billion tonnes as on 1.1.90 The reserves as on 1.1.1992 stand at 196.02 billion tonnes. Exploratory work carried out in Madhya Pradesh revealed occurrence of superior
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grade non-coking and coking coal reserves which were hitherto largely confined to Bengal and Bihar Coalfields. There were substantial additions to coal reserves in Orissa Coalfields and new discoveries were also made in Birbhum District of West Bengal. The latter, adjoining the Rajmahal trap, are fairly thick seams but the geo-mining conditions there pose technological problems because of their depth, penetration of the trap and low recoverability of coal from very thick seams in the underground mines. A methodology for efficient coal extraction in this area sing special expertise is under consideration.
8.34.3 The Seventh Plan laid special emphasis on regional exploration to broaden the base for detailed exploration and project formulation with an adequate range of choice. A separate Plan fund was created for that purpose as different from project linked detailed exploration. The aim was to provide a new thrust to resource-oriented regional exploration as distinct from production-oriented detailed exploration.
8.34.4 As against a detailed exploratory drilling target of 21.67 lakh meters during the Seventh Plan, the actual achievement was 21.10 lakh metres i.e., nearly 98% of the target.
8.34.5 Based on tentative estimates, out of the 196 billion tonnes of in-situ reserves as on 1.1.1992, around 144 billion tonnes may now he considered mineable. Out of this around 70 billion tonnes can be extracted economically on the basis of present technology.
Demand for Coal 8.35.1 Coal consumption during the Sixth Plan registered an average annual growth of 5.5% When the Seventh Plan was formulated, the demand for raw coal in 1989-90 i.e, the terminal year of the Seventh Plan was estimated at 236.70 million tonnes. At the time of the mid-term appraisal, however, this had to be scaled down to 222 million tonnes. Finally, the actual consumption in 1989-90 was only 199.79 million tonnes, repersenting 84% of the original projection. Against the projected growth rate of 11.2% per annum during the Plan, the actual growth was only 7.34 percentage. The growth of coal consumption in the Power sector, which continues to be the major consumer of coal, was 12.7 % per annum whereas the growth in demand from the other sectors remained sluggish at around 2.3 per cent.
Coal Production 8.36.1 At the time of the formulation of the Seventh Plan, the coal production target for 1989-90 was set at 226 million tonnes. This took into account the anticipated drawals from the large accumulated pit-head stock of coal which stood at 29.70 million tonnes at the begining of the Plan. The need for importing limited quantities of superior grade coking coal for the steel industry was also considered in fixing this target.
8.36.2 As against this target, the actual production achieved in 1989-90 was only 200.89 million tonnes which implied a shortfall of 11 per cent. As against the projected annual growth rate of production of 8.9% during the Plan, the actual annual rate in production has been only 6.4 per cent. The shortfalls in production in the case of CIL and SCCL were 9% and 26% respectively. The shortfall in SCCL, which was expected to cater to the requirements of the consumers in the South to a very large extent, resulted in ad-hoe changes in coal linkages to the consumers and, consequently, considerable irrational movement of coal.
Supply-Demand Mismatches 8.37.1 Even though the shortfalls in the consumption and production of coal in 1989-90, were 16% and 11% respectively at the all-India level, there were serious mismatches in the supply vis-a-vis demand throughout the Plan period as indicated below.
(i) Due to various constraints including railway transportation bottlenecks, the pit-head stock of coal, increased from 29.70 million tonnes as on 1-4-1985 to about 37.43 million tonnes as on 1-4-1990. The stock build-up was largely in the coal fields of Bihar and West Bengal whereas there was considerable unsatisfied demand in the Southern and Western regions.
(ii) The stock build-up was also partly on account of problems of coal quality, particularly for the steel industry, as a substantial quantity of coking coal was not found suitable for use in the blast furnaces of the integrated steel plants. Consequently, 4.45 million tonnes of coking coal had to be, imported
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in 1989-90. A number of improvements were suggested by an Expert Committee constituted immediately after the formulation of the Seventh Plan to facilitate increased coal production from Bihar and West Bengal. These included the setting up of captive power plants in the coal mining areas in the region. These projects which were to be commissioned in the Seventh Plan have however now slipped into the Eighth Plan. Some of the improvements to be effected in the case of washeries for coking coal supplies to the steel industry also have similarly got delayed.
(iii) Against the originally envisaged share of 44%, the underground mines contributed only 37% of the coal production in 1989- 90. The output per manshift (OMS) in underground mining operations remained stagnant at around 0.55 tonnes. The OMS in the case of opencast mines increased from 2.07 tonnes in 1984-85 to 3.11 tonnes in 1989-90 in Coal India against an envisaged level of 3.0 tonnes in that year.
(iv) Due to various factors including industrial relations, the SCCL fell short of its production targets leading to an annual shortfall of around 3 to 4 million tonnes for the consumers in the South throughout the Seventh Plan period. This led to ad-hoe allocation of coal from the Orissa and Wardha Valley coalfields of CIL to consumers in the South resulting in high costs of transportation of coal and its adverse impact on the cost of electricity generation.
(v) Despite the emphasis placed time and again on the propagation of soft coke and Special Smokeless Fuel (SSF) as substitutes for petroleum products and fuelwood for domestic use, the availability of these fuels continued to remain at a marginal level throughout the Plan period. Soft coke production in 1989-90 was only 1.3 million tonnes (raw coal equivalent) against the target of 5 million tonnes. Both pricing and distribution problems have come in the way of promotion of these fuels.
(vi) Coal shortages and problems of quality continued to have an adverse impact on the economy throughout the Seventh Plan. Against 56% of the coal produced from different coal fields passing through Coal Handling Plants (CHPs) at the begining of the Seventh Plan, about 95% of the coal dispatched as on 1-4-1991 passed through CHPs.
Environmental Implications of Coal Mining 8.38.1 Coal mining and associated processes have environmental implications especially in terms of degradation of valuable agricultural and forest land, displacement of population etc. The coal projects are subject to detailed environmental impact assessment before they are approved for implementation. The necessary safeguards are built into the project profile to ensure that these projects do not adversely affect the environment. However, subsidence of certain coal mines in the Raniganj area continued to pose problems.
Delays in Project Implementation 8.39.1 As a result of the continued efforts made by the concerned agencies, the proportion of delayed projects in the total number of projects taken up, declined from 40% as at the beginning of the Plan to about 26% at the end of the Plan. However, delays in the acquisition and the taking over of physical possession of land, delays in environment and forest clearance of projects, slippages on the part of the suppliers of equipment and machinery for coal mining and the uncertainties associated with the geo-mining conditions in individual projects continued to delay the commissioning of coal projects leading to substantial cost overruns. The number of coal projects sanctioned (each of more than Rs. 2 crores) since nationalisation of the coal industry and the number still under implementation as on 1-1-1992, as shown below, illustrates the overhang of the past commitments in this sector.
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Sanctioned since Under
implementation
nationalisation as on 1-1-1992
Number Investment Capacity Number
(Rs.Crores) (MMTPA)
Mining 441 13709 314.00 232
Non-
Mining 202 2331 - 160
Total 643 16040 314.00 392
8.39.2 It is necessary that the projects on hand are completed at the earliest.
EIGHTH PLAN 8.40.1 The following are the priority areas of coal and lignite development in the Eighth Plan.
(i) To ensure that the supply and movement of coal are managed in a well balanced manner so that the pit-head stocks are reduced to a reasonable level and the requirements of the consumers are met to the maximum extent.
(ii) To take up specific measures for maximising the use of indigenous coking coal in steel production through quality improvement schemes including betterment of the existing washery plants.
(iii) To minimise time and cost overruns in the implementation of coal projects.
(iv) To take such measures that would minimise delays in the implementation of projects on account of delays in land acquisition and rehabilitation of displaced families and delays in the clearance of projects from the forest and environment angle.
(v) To prepare an effective environmental management plan including a comprehensive rehabilitation policy and to monitor and implement the same.
(vi) To evolve and implement a policy aimed at improving the availability of coal-based domestic fuels.
(vii) To arrest low production and productivity in underground mines and improve overall productivity of machinery and manpower.
(viii) To promote technologies such as fluidised bed combustion not only for facilitating the efficient use of low- grade coal but also for utilising coal rejects from coal washeries and beneficiation plants.
(ix) To implement a viable and reasonable coal stocking policy.
(x) To evolve an action plan for the control of coal quality.
(xi) Beneficiation of non-coking coal on a large scale for use in load-centre power stations.
(xii) To promote welfare and safety of mine workers.
(xiii) Scientific evaluation of coal resources and allied exploration.
(xiv) Adoption of new technologies especially those aimed at improvement in efficiency and conservation.
(xv) Development of lignite in locations situated far away from coal sources.
Demand 8.41.1 The power sector is so far the largest consumer of coal. The other major consumers are; steel, cement, railways, fertilisers and the household sector (soft coke). A large number of consumer groups such as jute, paper, cotton textiles, chemicals, brick kilns etc. which constitute an important segment of economic activity are clubbed together as "other industries". For the major sectors, the demand is related to the sectoral targets of production while for the "other industries" category, in the absence of reliable data, the demand forecast is based on trend analysis. The overall demand in 1996-97 has been projected at 311.0 million tonnes in
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