Types of coal

Coal Types Volatiles % C H O S Heat

Carbon % Hydrogen % Oxygen % Sulfur % content
kJ/kg
Lignite 4565 6075 6.05.8 34-17 0.5-3 <28,470
(brown coal)
Flame coal 40-45 75-82 6.0-5.8 >9.8 ~1 <32,870
Gas flame 35-40 82-85 5.8-5.6 9.8-7.3 ~1 <33,910
coal
Gas coal 28-35 85-87.5 5.6-5.0 7.3-4.5 ~1 <34,960
Fat coal 19-28 87.5-89.5 5.0-4.5 4.5-3.2 ~1 <35,380
Forge coal 14-19 89.5-90.5 4.5-4.0 3.2-2.8 ~1 <35,380
Nonbaking 10-14 90.5-91.5 4.0-3.75 2.8-3.5 ~1 35,380
coal
Anthracite 7-12 >91.5 <3.75 <2.5 ~1 <35,300

Types of coal in India

Anthracite Coal
This is the best quality of coal and contains over 85 per cent carbon. It is very hard, compact, jet
black coal having semi-metallic luster.

Anthracite coal ignites slowly and burns with a nice short blue flame. In India, it is found only in
Jammu and Kashmir and that too in small quantity.

Bituminous Coal
This is the most widely used coal and contains 50 to 85 per cent carbon. It is dense, compact, and
brittle and is usually of black colour.

A good bituminous coal is composed of alternate dull and bright bands. Its calorific value is very
high due to high proportion of carbon and low moisture content. Most of the bituminous coal is
found in Jharkhand, Orissa, West Bengal, Chattisgarh and Madhya Pradesh.

Lignite ( Brown Coal)

Also, known as brown coal, lignite is a lower grade coal and contains about 35-50 per cent
carbon. It represents the intermediate stage in the alternation of woody matter into coal. Its color
varies from dark to black brown. It is found in Palna of Rajasthan, Neveli to Tamil Nadu,
Lakhimpur of Assam and Karewa of Jammu and Kashmir.

Peat
This is the first stage of transformation of wood into coal and contains less than 35 per cent
carbon. It is seldom sufficiently compact to make a good fuel without compressing into bricks.
Left to itself, it burns like wood, gives less heat, emits more smoke and leaves a lot of ash after
burning.

Major Coal producing states in India

CHHATTISGARH
The top most place is occupied by Chhattisgarh with a coal production of 127.095 Million Tonnes,
Chhattisgarh is the largest coal producing state in India. Chhattisgarh is the state with third highest coal
reserves in India of 52,533 Million tons, which is more than 17% of total coal reserves in India. Major
amount of coal produced here are used for generation of power. Sonhat, Lakhanpur, Sendurgarh, Jhilimili,
Korba, Bisrampur and Chirimiri are the major coal producing regions in Chhattisgarh. Coal produced in
the state is used by NTPC and State Electricity Board for power generation.

JHARKHAND
Jharkhand with coal production of 113.014 Million tons. Apart from being the leading coal producer,
Jharkhand is also the state with highest coal reserves in India, which is 80,716 Million tons. Jharkhand
accounts for more than 25% of the total coal reserves in India. Jharkhand is a state rich in minerals and
natural resources, which makes this state a centre of various industries Eastern Coalfields, Central
Coalfields, Tata Steel, Lafarge Cement and Tata Power are some of the companies present in Jharkhand. ,
Rajmahal, Karanpura, Darla, Bokaro, Jharia and Ramgarh are the main coal producing regions in
Jharkhand. Jharsugda and Ranapur are other coal producing areas in the state.

ODISHA
is another state in the country, which is rich in minerals and natural resources. Odisha produced 112.917
Million tons of coal in the last financial year, which is more than 19% of the total coal produced in the
country. Talcher is the major coal producing region in Odisha, which produced 63.973 Million tons of
coal in the last financial year. Ranpur and Jharsuguda are other coal producing areas in the state.
Coal pricing in India

The pricing of coal was controlled by the Central Government since 1945 under Colliery Control
Order of 1945 under section 4 .
The price notification had been amended in December 1995, January 1996 and April 1996 to
enhance the differential between run of mine, steam and slack coal, to meet the increase in
transportation charges .
Following the recommendations of Bureau of Industrial Costs and Prices (BICP), a decision was
taken by the Government to deregulate the prices of all grades of coking coal and A, B, & C
grades of non-coking coal and this decision was implemented with effect from 22.3.96.
In March,1996, the Government gradually deregulate the price of the various types and grades of
coal.
Later in 2000, the coal pricing was totally deregulated after the Colliery Control Order, 2000and
was decided by Coal India Limited.
Under the Colliery Control Order, 2000 the Central Government has no power to fix the prices of
coal.
The price of the coal depends on the input cost, mining cost, inflation and other factor.
The pricing of the coal is done on useful heat value (UHV) basis till Dec,2011 and from Jan,2012,
the pricing mechanism changed to the Gross Calorific value(GCV).
Coal Pricing, at present, is fixed by coal ministry in consultation with Coal India Ltd. (CIL) &
Singareni Collieries Company (SCCL). The price is determined on the basis of cost incurred in
Coal Production from different mines.

The expert committee on Integrated Energy Policy headed by Kirit Parikh, has
recommended setting up of an independent Coal Regulator to replace government
committees for determine coal prices for different user industries.

STEP-I: A weighted average price (WAP) calculation for all mines (UG/OC) together, as
applicable is calculated by taking sample opencast and underground mines in a certain
ratio and taking average cost for opencast mine and corresponding cost for underground
mines.
STEP II: Addition of other cost elements to Apothem cost elements are Interest on
Working capital, Interest on Term Loan; and post-tax return on equity. These elements are
calculated on the Netblock Per Ton basis.
STEP III: Summation of I & II above and Distribution of the average price among
various grades.
STEP-IV: Normative correction of the costs based on norms to derive fair prices
developed by BICP(Bureau of Industrial Costs and Prices ) or CMPDIL (Central Mine
Planning & Design Institute Limited). To achieve uniformity of prices among different
mines of same Coal Companies, BICP used norms for price finalizations (its own norms
as also CMPDI norms) For this purpose Normative levels of production, Stripping
Ratio, Annual Capacity, Interest, Power consumption, Consumption of explosives and
detonators, Requirement of Working capital etc. were prescribed.
 STEP V: Grade wise distribution of cost & price fixation for different Grades of Coal and
Classes of Mines.
The price of coal delivered shall be Basic Price+ Other Charges+ Statutory
Charges.