What’s in today’s article?

• Why in the News?
• Distribution of Coal Across the World
• India’s Coal Reserves
• Types of Coal in India
• Problems With Coal Found in India
• India’s Dependence on Coal for Energy Supply
• Revenue Sharing Model for Coal Plants
• News Summary

Why in the News?

• In an effort to bolster its revenue stream, national miner Coal India Ltd (CIL) has awarded its abandoned coal mines to private players on a revenue-sharing model.
• CIL had identified 23 coal mines — most of them underground ones — which were closed or discontinued for technical or financial reasons.

Distribution of Coal Across the World

• Coal is a widespread resource for energy and chemicals.
• The quantities of proven coal reserves in the world are typically shown in Millions of Tons of Coal Equivalent (MTCE).
• Nearly 75 per cent of the world’s recoverable coal resources are controlled by five countries:
  • United States (~22 per cent)
  • Russia (~15 per cent)
  • Australia (~14 per cent)
  • China (~13 per cent)
  • India (~10 per cent)

India’s Coal Reserves

• Commercial coal-mining industry has been in operation since 1774, launched by the East India Company along the Damodar River in West Bengal.
• 70 per cent of India’s coal supply comes from the states of Jharkhand, Chhattisgarh, Odisha, West Bengal and Madhya Pradesh.
• State-owned Coal India Limited has a virtual monopoly on coal mines in India, which produce roughly 75 per cent of the coal burned in India’s coal-fired power stations.

Types of Coal in India

Problems With Coal Found in India

• High Ash Content:
  • Issue: Indian coal generally has high ash content, ranging from 20% to 45%.
  • Impact: High ash content reduces the calorific value, increasing the cost of coal handling and transportation, and results in more waste and pollution.
• Lower Calorific Value:
  • Issue: Indian coal has a lower calorific value compared to imported coal.
  • Impact: This necessitates burning more coal to produce the same amount of energy, leading to higher emissions and inefficiencies in power generation.
• Limited Coking Coal:
  • Issue: India has a shortage of high-quality coking coal, which is essential for steel production.
  • Impact: This necessitates the import of coking coal, increasing costs and dependence on foreign sources.
• Environmental Concerns:
  • Issue: Coal mining and combustion contribute significantly to air pollution, water contamination, and deforestation.
  • Impact: These environmental issues have severe health implications and contribute to climate change, making coal less sustainable in the long term.

India’s Dependence on Coal for Energy Supply

• While renewable energy capacity is dramatically increasing, coal still provides around 70 per cent of the country’s electricity.
• Coal is expected to account for at least 21 per cent of India’s electricity requirements even by 2050.
• Easily Available Source of Power:
  • Alternatives like nuclear energy have been hampered by high costs and safety concerns.
• India’s Developmental Needs:
  • The International Energy Agency (IEA) predicts that between 2020 and 2040, India will have the largest growth in energy demand of any country in the world.
  • To meet this demand, India will need to rely on a variety of energy sources—both conventional and renewable.
• Source of Employment:
• Around 4 million people in India are employed either directly or indirectly in the coal sector.
• Other than active workers, another 500,000 Indians rely on the coal sector for their pensions.
• Source of Revenue for the Government:
  • Coal India Limited is the largest coal mining company in the world.
  • The coal sector is a major source of revenue for States and the Central Government.

Revenue Sharing Model for Coal Plants

• The revenue sharing model involves collaboration between Coal India Ltd (CIL) and private players.
• Revenue Sharing Framework:
  • Structure: Private players are awarded contracts to operate abandoned or underutilized coal mines on a revenue-sharing basis with Coal India Ltd (CIL).
  • Revenue Split: The revenue generated from coal sales is shared between CIL and the private operators based on agreed terms.
• Identification of Mines:
  • Selected Mines: CIL identified 23 abandoned or discontinued mines, mostly underground, with a cumulative peak-rated capacity of 34.14 million tonnes per annum (MTPA) and estimated reserves of 635 million tonnes (MT).
• Operational Mechanism:
  • Mine Developer and Operator (MDO): Private operators, also known as Mine Developer and Operators (MDOs), are responsible for the coal extraction and production process.
  • Freedom in Operations: MDOs have the autonomy to choose their technology, methods, and machinery for coal extraction.
• Auction Process:
  • Market-Driven Pricing: Coal mined from these sites is sold at market-driven prices through an auction process managed by the operators on behalf of the authority.

News Summary

• Coal India Ltd (CIL) has assigned its abandoned coal mines to private players on a revenue-sharing model to boost domestic production and reduce imports.
• Out of 23 identified mines, which have a combined capacity of 34.14 MTPA and reserves of 635 MT, most were closed for technical or financial reasons.
• This initiative, aimed at increasing industry participation, will see 75% of coal excavation outsourced to private operators, with a goal to reach 90% in five years.
• While the revenue impact is modest (10-12%), the focus is on quicker production turnaround and environmental benefits.
• These mines will sell coal at market prices through auctions and support coal gasification projects.

· CIL reported a 7.28% increase in coal production, reaching 160.25MT, and a 27% growth in production from captive and commercial mines.

Q1. What do you mean by Coal Gasification?

In industrial chemistry, coal gasification is the process of producing syngas—a mixture consisting primarily of carbon monoxide, hydrogen, carbon dioxide, methane, and water vapour —from coal and water, air and/or oxygen. Historically, coal was gasified to produce coal gas

Q2. What is Coalbed Methane?

 Coalbed methane, coalbed gas, or coal seam gas is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in the United States, Canada, Australia, and other countries. The term refers to methane absorbed into the solid matrix of the coal.

Source: CIL awards underground mines to private players to bolster revenue stream 

What’s in today’s article?

• Why in News?
• The Ancient Nalanda Mahavihara
• Revival of Nalanda University
• Features of the New Nalanda University Campus
• Highlights of the PM's Address at the New Nalanda University Inauguration

Why in News?

• The Prime Minister of India inaugurated the new campus of Nalanda University in Rajgir, Bihar.
• The new campus is near the ancient ruins of Nalanda University, which was established through the Nalanda University Act 2010, enacted following a decision made at the 2nd East Asia Summit in the Philippines in 2007.

The Ancient Nalanda Mahavihara:

• Nalanda was a renowned Buddhist mahavihara (great monastery) in ancient and medieval Magadha (modern-day Bihar), near the city of Rajagriha (now Rajgir) and about 90 kms southeast of Pataliputra (now Patna).
• It was established by Kumargupta I - the ruler of Gupta Empire (c. 3rd to 6th century CE), and is considered to be among the greatest centres of learning in the ancient world.
• It played a vital role in promoting the patronage of arts and academics during the 5th and 6th century CE, a period that has since been described as the "Golden Age of India" by scholars.
• The chronicles of seventh century Chinese traveller Hsuan Tsang provide the most detailed description of ancient Nalanda.
• After Guptas, Nalanda continued to thrive with the support of the rulers of the Pala Empire and may have been attacked (in 1190s) and damaged by Muhammad Bakhtiyar Khalji - a Turko-Afghan military general.
• After being lost for six centuries, the university was rediscovered in 1812 by Scottish surveyor Francis Buchanan-Hamilton.
• Later (in 1861), it was officially identified as the ancient university by Sir Alexander Cunningham.
• The current site of Nalanda is a UNESCO World Heritage Site and the Government of India enacted a law in 2010 to revive the famous university
• The contemporary Nalanda University at Rajgir has been listed as an "Institute of National Importance" by the Government of India.

Revival of Nalanda University:

• In a bid to revive its legacy, the idea to re-establish Nalanda University was proposed by former president Dr APJ Abdul Kalam in 2006.
• In 2007, the proposal to re-establish Nalanda was endorsed at the East Asia Summit in Mandaue, Philippines, and was reiterated in the East Asia Summit of 2009, in Hua Hin, Thailand.
• This vision gained momentum with the passing of the Nalanda University Bill in 2010 in the Indian Parliament, leading to its operational launch in 2014 from a temporary location near Rajgir.
• Former president Pranab Mukherjee laid the foundation stone for the permanent campus in 2016 at Pilkhi village, Rajgir.
• Construction commenced in 2017 and the university became fully functional by 2022, culminating in the inauguration of the new campus recently.
• In total, 17 countries other than India, including Australia, Bangladesh, Bhutan, Cambodia, China, New Zealand, Portugal, Singapore, South Korea, etc - have helped set up the university.

Features of the New Nalanda University Campus:

• The architecture of the university, situated on a sprawling 455 acres of land, fuses both the modern and ancient styles.
• The new campus integrates eco-friendly architecture, ensuring a net-zero carbon footprint.
• The university currently operates six schools, covering Buddhist studies, historical studies, ecology, sustainable development, languages, literature, and international relations.
• Additionally, it hosts four centres specialising in Bay of Bengal Studies, Indo-Persian Studies, Conflict Resolution, and a Common Archival Resource Center.
• It offers a range of programs including postgraduate and doctoral research courses, short-term certificate courses, and scholarships for international students, reflecting its commitment to global academic excellence.

Highlights of the PM's Address at the New Nalanda University Inauguration:

• Nalanda University is a proclamation of the fact that knowledge cannot be destroyed by fire.
• Nalanda University would add a new dimension to the idea of world brotherhood and become the identity of India’s development journey.
• The Renaissance of Nalanda will tell the world about India’s capacity and will help India become a global hub for knowledge and education.
• History was proof that all developed countries became economic and cultural leaders only after they made a mark in the field of education.
• India currently has 23 IITs, 21 IIMs and has witnessed the setting up of one university every week in the last 10 years, along with establishment of an industrial training institute every 10 days.
• Major reforms are going on in the education sector, which includes the National Education Policy 2020.

Q.1. Why is the period during the Gupta empire known as a golden age? 

The Gupta Age (from the mid-3rd century CE to mid-6th century CE) is called the golden age because of the advancements in art, literature, religion, medicine, and science. Many later Indian societies were inspired by the Gupta.

Q.2. What is the East Asia Summit (EAS)?

The EAS is a regional forum held annually (first summit in Kuala Lumpur, Malaysia, in 2005) by leaders of the 18 nations (ASEAN + Six + Russia and the United States). It plays an important role in the regional architecture of Asia-Pacific.

Source: Narendra Modi in Bihar highlights: ‘Nalanda is an identity, an honour, ’ says PM | IE | IE