2.1 CO2 sources in India

2.1.1 Introduction

Indian CO2 emissions in 2000 were 956 Mt (= million tonnes) CO2, having grown by 61% during the period 1990-2000 (Garg and Shukla, 2002). Large point sources (LPSs), especially thermal power plants, steel plants, cement plants, fertilizer plants, refineries and petrochemical plants contributed about 64% of all-India CO2 emissions in 2000. The major contributors were power plants (44.9%), steel plants (9.2%) and cement plants (8%) (Kapshe et al, 2003).

Subsequently, India’s total CO2 emissions grew to 1343 Mt CO2 in 2004 (United Nations Statistics Division 2007). The current survey indicates that large point sources emit some 721 Mt of CO2.

The twenty-five largest emitters contributed around 36% of the total all-India CO2 emissions in 2000 and grew around 10% per annum during the period 1990-2000 (Garg et al, 2004). This indicates that there are important focussed carbon dioxide mitigation opportunities in India.

2.1.2 Data Sources and update of the IEAGHG CO2 sources database

There is no comprehensive database covering all the categories of large point source emissions in India, and there is a general dearth of plant-level information in the public domain. Therefore many diverse data sources were utilized to compile the emissions information used to update the IEAGHG CO2 sources database. These mainly comprised published documents of the Government of India, State governments and government organizations and institutions. Helpful information was also available from industry federations and autonomous organizations covering various sectors. The Centre for Monitoring of Indian Economy database was used for company-level and plant-level production and fuel data.

Reliable, precise latitude and longitude data was not available for many plants. Therefore, in some cases it was necessary to locate them at the nearest settlement or to rely on data from unpublished sources for mapping the plant locations. In such cases efforts have been made to verify the data by cross-referencing more than one data source.

2.1.3 Sectors

The following sectors of the IEAGHG R&D Programme CO2 sources inventory were updated:

  • Cement
  • Fertilizer / Ammonia
  • Iron and steel
  • Power
  • Refineries CEMENT

In India there are around 54 major players in the cement industry, with a total installed capacity of around 157 million tonnes cement per annum (mtpa) at end March 2006 (ICRA, 2006). Large cement plants accounted for 93% of the total installed capacity in India. There are about 71 cement manufacturing plants scattered all over India which have emissions of 0.1 Mt per year or above. Table 2.1 shows the market share of leading cement producers.

Table 2.1 Market Share of Leading Cement Producers over the years (from ICRA 2006)

Financial Year 2001 2002 2003 2004 2005 2006
The Associated Cement Companies Limited 11.2% 12.2% 12.8% 13.5% 13.0% 12.6%
UltraTech CemCo Ltd. 11.9% 11.1% 10.5% 10.1% 10.1% 9.7%
Gujarat Ambuja Cements Limited 10.6% 8.7% 9.5% 10.1% 11.3% 10.6%
Grasim Industries Limited. 9.2% 10.3% 10.9% 10.9% 10.3% 10.3%
Century Textiles and Industries Limited 5.4% 5.0% 4.8% 4.8% 4.8% 4.7%
Birla Corp Limited 4.2% 4.0% 4.1% 4.1% 3.9% 3.6%
The India Cements Limited 7.3% 5.8% 5.4% 5.4% 5.1% 5.9%
Jaiprakash Industries Limited 2.3% 3.9% 3.8% 3.6% 4.3% 4.5%
Lafarge 3.8% 3.8% 3.4% 3.2% 3.4% 3.2%
Others 34.1% 35.2% 34.8% 34.3% 33.7% 34.8%
Total 100% 100% 100% 100% 100% 100%

The Indian cement industry has witnessed substantial reorganisation of capacities during the last couple of years through mergers and acquisitions by multinational cement companies such as Holcim, Holcim Mauritius, Lafarge, Italcementi, and Heidelberg Cement.

The growth in the production and consumption of cement in India is directly related to the growth in the construction industry. GDP in the construction industry grew 12.1% during FY2006, 12.5% during FY2005, and 10.9% during FY2004. This has had a positive impact on cement consumption, which increased 10.1% during FY2006 and 8.1% during FY2005 (ICRA, 2006).

In 1960, around 94% of the cement plants in India used wet process kilns. These kilns have been phased out and at present, more than 95% of the kilns are dry process, 3% are wet, and only about 1% are semi-dry.

For the present study an average emission factor of 1.15 kg of CO2 per kg of cement has been used. It varies between 1.1 for dry process to 1.2 for wet process (Cleantech). Total estimated CO2 emissions from cement plants included in the updated IEAGHG CO2 sources database are 111.02 million tonnes. FERTILISER / AMMONIA

Two major types of fertilisers are manufactured in India – phosphatic and nitrogenous. Nitrogenous fertilisers include ammonium sulphate, ammonium chloride, urea, etc. India is the world’s largest producer of nitrogenous fertiliser, having around 40 plants. Phosphatic fertilisers include single superphosphate and rock phosphate. Potassic and complex fertiliser (different combinations of NPK) are also produced, in smaller quantities.

Presently, there are 56 large fertilizer plants in the country. Of these, 29 units produce urea, 20 units produce Diammonium Phosphate (DAP) and complex fertilizers and 7 units produce low-analysis straight nitrogenous fertilizers. 9 plants manufacture ammonium sulphate as a by-product. In addition to the above, there are about 71 medium and small-scale units in operation producing Single Superphosphate (SSP) (GOI, 2007). Out of these fertilisers producing plants, only 32 plants have an emission above 0.1 Mt and are included in IEAGHG database. Total estimated CO2 emissions from fertiliser manufacturing plants included in the updated IEAGHG CO2 sources database are 13.45 Mt.

The majority of ammonia production in India takes place in fertilizer manufacturing units. There are 18 ammonia manufacturing plants with emissions greater than 0.1Mt CO2 per year (CMIE, 2005). The total production of these plants for the year 2006 was 10.37 Mt. The emissions have been estimated by using an emission factor of 2.104 kg of CO2 per kg of ammonia (average value for the natural gas process, see IPCC, 2006). Total estimated CO2 emissions from ammonia manufacturing plants included in the updated IEAGHG CO2 sources database are 21.83 Mt. IRON AND STEEL

India is the 10th largest producer of steel in the world, accounting for 3.2% of world steel production, but per capita consumption of steel in India is amongst the worlds lowest. On the basis of routes of production, the Indian steel industry can be divided into three types of producers:

  1. Integrated Producers that convert iron ore into steel. There are three major integrated steel players in India, namely Steel Authority of India Limited (SAIL), Tata Iron and Steel Company Limited (TISCO) and Rashtriya Ispat Nigam Limited (RINL).
  2. Mini steel plants (MSPs). These are secondary producers who make steel by melting scrap or sponge iron or a mixture of the two. Essar Steel, Ispat Industries and Lloyds steel are the largest producers of steel through this route.
  3. Small producers who use steel from integrated and secondary producers for producing finished goods.

In this report we have concentrated on the integrated steel plants; however, a few major secondary producers have also been included in the database. India has 38 major steel plants that have emissions greater than 0.1 Mt CO2. The integrated steel units usually use the blast furnace – basic oxygen/open hearth furnace process route for iron and steel production. The secondary producers commonly employ the electric arc furnace process and a large number of smaller units rely on other processes such as the induction furnace process and melting by re-rollers.

Emissions from this sub-sector can be ascribed to three distinct sources: the use of coal as reducing agent in the blast furnace, the production of steel from pig iron and the graphite electrode in the electric arc furnace. The average emissions factor used is 2.16 kg of CO2 per kg of molten metal for integrated plants and 0.45 kg of CO2 per kg of molten metal for mini and secondary producers (Biswas et al, 2004; GHG protocol). Total estimated CO2 emissions from steel plants that are operational or under construction and included in the updated IEAGHG CO2 sources database are 64.85 million tonnes. POWER

Power development in India commenced at the end of nineteenth century with the commissioning of the first 130 kW unit at Sidrapong in Darjeeling in 1897, followed by the first steam-driven power plant rated at 1000 kW two years later at Calcutta in 1899, operated by CESC. Installed power capacity in India has increased from 1362 MW to over 100,000 MW since independence and more than 500,000 villages have been electrified. India is now the world’s sixth largest energy consumer, consuming about 3% of the world’s total energy per year. Electric power is a critical part of the infrastructure necessary for economic development and for improving the quality of life and it is a matter of concern that the annual per capita consumption of India, at about 350 kWh is among the lowest in the world. Further, people in a large number of villages have no access to electricity.

A range of thermal, hydro, nuclear and renewable power plants are operating in India. Thermal generation constitutes more than 80% of total energy generation in India. The thermal power plants are coal, diesel or gas-based. Coal-based power plants are the backbone of the Indian power sector and will continue to be a major source of electricity generation in the country for the foreseeable future as there is a total coal resource of 255.17 billion tonnes of which nearly 96 billion tonnes are proven reserves. Presently power generation is dominated by the public sector, which has about an 89% share of the total installed capacity. In the pre-independence era the power supply was mainly in the hands of the private sector and was essentially restricted to urban areas.

The emission factors that have been used to estimate CO2 emissions are 1.02, 0.4 and 0.5 tonnes of CO2 per kWh for coal, gas and diesel based plants respectively. These emission factors are based on Garg et al. (2002) and Biswas et al. (2004). Full details of all the power plants are given in the updated IEAGHG R&D Programme CO2 sources database. Table 2.2 presents the CO2 emissions from operating power sector large point sources in India by State.

Table 2.2 State wise Power Sector LPS CO2 emissions in India

State Fuel Capacity MW Production GW hr CO2(kt)
Andhra Pradesh Coal 6,553 42,850 43,708
Diesel 37 274 137
Gas 1,112 8,158 3,263
TOTAL 7,702 51,282 47,108
Assam Coal 330 2,012 2,053
Gas 189 1,152 460
TOTAL 519 3,164 2,513
Bihar Coal 1,380 8,243 8,408
TOTAL 1,380 8,243 8,408
Chhattisgarh Coal 3,380 24,854 25,352
TOTAL 3,380 24,854 25,352
Delhi Coal 1,103 7,339 7,487
Gas 612 3,734 1,494
TOTAL 1,715 11,073 8,981
Goa Gas 48 358 143
TOTAL 48 358 143
Gujarat Coal 4,944 31,012 31,634
Gas 3,056 19,504 7,802
TOTAL 8,000 50,517 39,436
Haryana Coal 1,540 9,389 9,576
Gas 430 3,162 1,265
TOTAL 1,970 12,551 10,841
Jammu & Kashmir Gas 175 1,067 427
TOTAL 175 1,067 427
Jharkhand Coal 3,158 14,356 14,643
Gas 90 332 133
TOTAL 3,248 14,688 14,776
Karnataka Coal 1,730 10,901 11,119
Diesel 209 1,386 693
Gas 220 1,640 656
TOTAL 2,159 13,927 12,468
Kerala Diesel 235 1,430 715
Gas 366 1,416 567
TOTAL 600 2,846 1,282
Madhya Pradesh Coal 4,543 31,953 32,593
TOTAL 4,543 31,953 32,593
Maharashtra Coal 8,075 51,473 52,504
Gas 2,072 13,916 5,566
TOTAL 10,147 65,389 58,070
Orissa Coal 3,890 23,617 24,091
TOTAL 3,890 23,617 24,091
Punjab Coal 2,120 12,926 13,184
TOTAL 2,120 12,926 13,184
Rajasthan Coal 2,295 13,993 14,273
Gas 413 2,785 1,114
TOTAL 2,708 16,778 15,387
Tamil Nadu Coal 5,710 36,717 37,450
Diesel 412 3,069 1,534
Gas 713 4,888 1,956
TOTAL 6,834 44,674 40,940
Uttar Pradesh Coal 9,722 65,642 66,957
Gas 1,469 9,575 3,830
TOTAL 11,191 75,217 70,787
West Bengal Coal 7,285 39,775 40,569
TOTAL 7,285 39,775 40,569
INDIA TOTAL   79,613 504,899 467,356

* The above numbers are compiled on the basis of the LPS documented in the database and are not the total sectoral emissions for the states.

Total emissions from operating power plants are 467.36Mt CO2 p.a. Total emissions from plants planned or under construction excluding the proposed UMPPs are estimated to be 395.77 Mt CO2 p.a. and total emissions from the proposed UMPPs are estimated to be 257.34 Mt CO2 p.a.1. Thus the emissions from the planned and under construction plants including the UMPPs are significantly greater than those of the operating plants. This is because Government of India has envisaged capacity addition of 100,000 MW by 2012 to meet its mission of Power to All. Achievement of this target also requires the development of large capacity projects at the national level to meet the requirements of a number of States.

The Ministry of Power, Government of India has launched an initiative for development of coal-based Ultra-Mega Power Projects (UMPPs) in India, each with a capacity of 4,000 MW or above. In first phase, nine sites have been identified by Central Electricity Authority (CEA) in nine States for the proposed UMPPs. These include four pithead sites, one each in Chhattisgarh, Jharkhand, Madhya Pradesh and Orissa, and five coastal sites, one each in Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu.

Nine wholly owned subsidiaries have been established by Power Finance Corporation Ltd. for taking up developmental work. These are:

  1. Sasan Power Limited for pit-head project at Sasan (MP)
  2. Akaltara Power Limited for pit-head project at Akaltara (Chhatisgarh)
  3. Coastal Gujarat Power Limited for imported coal based project at Mundra (Gujarat)
  4. Coastal Karnataka Power Limited for imported coal based project at Tadri (Karnataka)
  5. Coastal Maharashtra Mega Power Limited for imported coal based project at Girye (Maharashtra)
  6. Coastal Andhra Power Limited for imported coal based project at Krishnapatnam, (Andhra Pradesh)
  7. Orissa Integrated Power Limited for pit-head project at Orissa
  8. Coastal Tamil Nadu Power Limited for imported coal based project at Cheyyur (Tamil Nadu)
  9. Jharkhand Integrated Power Limited for pit-head project near Tilaiya village (Jharkhand)

Ministry of Power is playing the role of a facilitator to coordinate with different agencies. These Ultra Mega Power Projects will add 36,000 MW at nine locations within a span of 7-8 years and help in achievement of the targets for faster capacity addition. REFINERIES

The Indian refinery sector consists of 21 refineries with CO2 emissions > 0.1 Mt. Total installed refinery capacity of the country stood at 127.36 Mtpa at the end of April 2005, increasing marginally by 1.4 Mt from 2003-04 (MoPNG 2005). The total crude oil processed in the country in 2004/05 was 127.117 Mt, which translates into a capacity utilization of 99.80%. However, there were significant differences among the refineries. On one hand, IOC Guwahati, Digboi, Panipat; HPCL (Hindustan Petroleum Corporation Ltd) refineries, BPCL (Bharat Petroleum Corporation Ltd) refinery, ONGC refinery, and MRPL (Mangalore Refinery and Petrochemicals Ltd) ran at more than 100% capacity utilization, and on the other hand, refineries such as IOC Mathura, and both the CPCL (Chennai Petroleum Corporation Ltd) refineries ran at low capacity utilization, and the utilization levels were lowest at the NRL (Numaligarh Refinery Ltd) refinery at Numaligarh - at around 68.07% (TEDDY, 2005). The capacity in 2006 has increased to 141.62 Mtpa.

The public sector share of total refinery capacity stood at 74.09% in 2003-04.

An emission factor of 0.219 Kg CO2 per kg of product (IEA GHG Database, 2004) was to estimate the CO2 emission. Total estimated CO2 emissions from operating refineries included in the updated IEAGHG CO2 sources database are 30.7 Mt.

2.1.4 Agglomerations of Large Point Sources

LPS clusters observed in the present study closely correspond to the major industrial regions of Sharma and Coutinho (1992):

  1. The Hooghly Belt
  2. The Mumbai -Pune Belt
  3. The Ahmedabad-Vadodara Region
  4. The Chennai-Coimbatore-Bengaluru Region
  5. The Chotanagpur Plateau Region, and
  6. The Mathura-Delhi-Saharanpur-Ambala Region.

Figure 2.1 shows these clusters. THE HOOGHLY BELT

Stretching along the Hooghly river from Naihati to Budge along the left bank and Tribeni to Nalpur along the right bank, the Hooghly Belt constitutes one of the most important industrial regions of India: Jute textiles, engineering, cotton textiles, chemicals, leather footwear, paper and match works are the important industries in the area. The port facilities of Kolkata, proximity to coal, jute and leather-producing areas, cheap transport, availability of large quantities of fresh water and affluent discharge facilities have attracted the industries to this area. MUMBAI-PUNE BELT

Including Bombay, Kurla, Ghatkopar, Vile Parle, Jogeshwari, Andheri, Thana, Bhandup, Kalyan, Pimpri, Kirkee, Poona and Hadapsar, this belt has a heavy concentration of cotton textile, engineering, oil refineries, fertilizer and chemical industries. The belt is discontinuous in the Sahyadri section between Karjat and Pimpri. Cotton textile industry, the nucleus of industrial growth in the area, began here during the 1950s as a result of Parsee enterprise. Development of hydroelectric power in the Sahyadris later on, availability of raw cotton in Maharashtra and Gujarat and cheap labour from Konkan were the main assets of this area besides the most important factor namely, the port facilities of Bombay THE AHMEDABAD-VADODARA REGION:

This region produces cotton textiles, plastics, fertilizer, chemicals and engineering goods on a large scale. The power problem, a handicap till recently, has been overcome successfully as a result of the completion of a number of projects including Dhuvaran Thermal Power Station, Uttaran Gas Power Station, Ukai Hydro-Electric Project and Tarapur Atomic Power Station. THE CHENNAI-COIMBATORE-BENGALURU REGION

Chennai, Coimbatore and Madurai are leading producers of cotton textiles. A number of engineering and chemical industries also have come up at these and several other places particularly Salem and Tiruchirapalli. Bengaluru has cotton, woollen and silk textiles together with a number of public sector engineering industries. The Mettur, Sivasamudram, Papanasam, Pykara and Sharavati hydroelectric projects supply cheap power. THE CHOTANAGPUR PLATEAU REGION

This area covering parts of Bihar and West Bengal produces over 80 per cent of India’s coal, substantial quantities of iron ore, manganese, bauxite, mica and limestone. It has, therefore, become a hub of heavy industries. Jamshedpur, Bokaro, Kulti, Burnpur and Durgapur are centres of steel production. Asansol, Dhanbad, Bokaro, Ranchi and Jamshedpur are centres of metallurgical and other heavy industries. THE MATHURA-DELHI-SAHARANPUR-AMBALA REGION

This region has two separate belts running in a north-south direction, between Faridabad and Ambala in Haryana, and Mathura and Saharanpur in Uttar Pradesh. The belts merge into an agglomeration around Delhi which is one of the largest industrial cities in India. It has cotton textile, glass, chemicals and engineering industries; Saharanpur and Yamunanagar have paper mills. Modinagar is a large industrial centre with textile, soap and engineering industries and Modipuram has an automobile tyre producing factory. Ghaziabad is a large centre of agro-industries and Faridabad of engineering industries. Ferozabad is a leading centre of glass works. There are sugar factories situated practically on all major stations along the Deihi-MeerutSharanpur railway line. Mathura has a large oil refinery. Besides availability of cheap raw materials like sugarcane, raw cotton, sands and wheat bran, a large market is the main stimulus for the industrial development in the area. Thermal power stations at Faridabad and Harduaganj and Bhakra Nangal and Yamuna Hydro Power Projects supply power to the area.

Figure 2.1 Industrial clusters in India

Besides the above regions, a number of smaller clusters with many consumer and other industries and power plants are present, particularly in central India and also around large towns in other parts of the country.

2.1.5 Regions with very few large point sources

India also has some regions of very few LPS like the northern hilly states of Jammu and Kashmir and Himachal Pradesh, the seven hilly northeast states, the west coastal hills and the Thar Desert in the northwest. These are mostly thinly populated regions with low accessibility.

2.1.6 State-wise emissions from various sectors

Figure 2.2 shows the estimated CO2 emissions for different states. These figures are based on the CO2 emissions from the LPS for the sectors included in this database only i.e. cement, fertiliser, ammonia, steel, power, and refineries. These numbers do not reflect the total emission from the states.

It can be seen that Uttar Pradesh has the highest CO2 emission from LPSs, and is followed by Maharashtra, Gujarat and Andhra Pradesh. The high CO2 emissions in these states are primarily due to thermal power. Gujarat and Andhra Pradesh also have substantial CO2 emissions from cement sector.

Figure 2.2. Total CO2 Emissions by State (sources emitting >0.1 Mt per year)

1 Future emissions forecasts are made on the same basis as estimates of current emissions, i.e. using the data in the IEAGHG R&D Programme CO2 sources database.