Historical Context of Sustainability - Coal India - Case Study Example

Introduction

Coal is one of the largest resources that make up the Indian economy. Coal India is a state owned Company that affects the production and marketing of coal as the source of energy. The firm focuses on the environmental conservation, concerning safety and quality of the product channeled into the market. Vasudevachary (1994) stated that the large-scale production of coal has enabled the Indian government to have a competitive advantage over the rivals, thereby concentrating on the world market as the primary producer of coal. Notably, coal is one of the substances that pose a significant threat of pollution to the environment if not properly managed. India being the primary producer of coal, it faces many challenges due to the harmful influence of fuel.

Additionally, there is importance to the history of sustainability of business use of coal and the recommendations about the viability of that natural resource. Some of the issues highlighted entail displacement of persons, low standards of living due to loss of jobs. Others include escalating pollutions from the mining sites and observed deteriorating health status of residents in the development regions. Lastly, India is facing a challenge of increased demand for coal due to lack of alternative sources of energy in the area. Finally, the government must initiate workable policies to curb the ever-increasing impacts of coal production in the region. Such policies should revolve around eliminating the environmental impact of exploiting the substance by minimizing their effects, and as well as the socioeconomic issues (Vasudevachary, 1994).

History of Sustainability Problems Arising from Business Use of Coal

According to Vasudevachary (1994), it is worth noting that coal is a black combustible material used for cooking. The fuel is composed of carbon that increases energy content, which facilitates the burning process. Interestingly, the fuel results from plants, ferns, and trees that decompose after a much-extended period in waterlogged regions. Besides, the conditions inhibit complete decomposition of the materials beneath the earth, creating intense heat and pressure. As such, the coal takes millions of years to form after severe compaction.

The coal production resulted to not only social and economic backwardness but also unfavorable environmental conditions. First, the coal production led to water scarcity in the region. Mining activities require large volumes of water that includes processing of the fuel to eliminate residual particles from beneath the ground. The second issue cited to be the predicament due to mining activities to produce fuel is that of pollution. The air and water pollution is common to areas that such projects are exhibited. Persistent washing of coal and the smoke eliminated during the manufacture of coal contribute to both water and air pollution, and cause of global warming through the emission of carbon gasses. The emissions are harmful to human health, thereby lowering chances of survival in the regions that conduct manufacture of coal. The development areas also remain unfit for agricultural activities, and for human settlement. Lastly, the act leads to deforestation of the area, subjecting it to erosion by both wind and water (Vasudevachary, 1994).

The production of coal, over the years, has affected both the social setup and the economic status of India. Vasudevachary (1994) argued that the reasons as to why such problem manifest in the country are due to large-scale mining activities and the massive expansion of the mining sites. Another reason that contributes to adverse effects of coal on social and economic issues is the presence of dominant of opencast mining, which affects the natural outlook of the mining sites.

Primarily, the social aspect tends to face significant challenges because of numerous involved underlying issues in the country. One issue highlighted as a contributing factor to the problems that humanity undergoes in India is the land tenancy system. The land acquisition is through the application of The Land Act of 1894 or The Coal Bearing Areas, also referred to as Acquisition and Development Act of 1957. The accumulated number of displaced population from the mining sites is approximated to be 21 million people between the years 1951 and 1991. Probably, the figure has increased to 30 million by the year 2006. The system of land tenancy led to the spontaneous displacement of a vast number of persons from the grabbed land used as the mining sites (Vasudevachary, 1994).

The third social consequence of displacement of human beings from the development projects is the difference in financial class and the castle conflicts. It is so among the families, and in such a case, the most affected individuals involve women, elderly, and the children. The system of land tenancy led to the spontaneous displacement of a vast number of persons from the grabbed land used as the mining sites (Vasudevachary, 1994).

On the other hand, the process of displacing humanity influenced the economic progress of India. Vasudevachary (1994) implied that the loss of livelihood sources encouraged deterioration of the economic situation in the country. Consequently, the effect was spread to entire state through the inability by the state to correct the overall imbalance in the balance of payments in the country, which triggered the low living standards.

However, one of the sustainability problem faced by the coal producing firm is the meeting the high demand for coal especially the power sector. The process of nationalizing the company took place between the years 1971 and 1973, with the manufacture of coal settling at 431 million tons of raw coal annually. Since then, the production of coal has been increasing at a steady rate. In the years 2006 and 2007, the manufacture of that natural resource was recorded at 30 million tons of lignite coal. Over the years, the production of coal has increased immensely since the government took over both the production and the supply of the natural resource (Vasudevachary, 1994).

Vasudevachary (1994) implied that historically, the massive production is based on two organizations of which are Singareni Collieries enterprise and Coal India accounting for 95% of the coal production. The ever-increasing demand for coal in the country is becoming a threat. Further, the demand is anticipated to increase due to the presence of power generation sector in the country. Most alternative sources of energy need full exploitation but require enormous financial resources necessary for their viability. Such energy resources include the naphtha, diesel and imported natural gas, and the nuclear and hydroelectric power.

Recommendations

Observing certain institutional and governance issues are important for sustainable development of the coal-power sector. Government plays a critical role in ensuring that resources are equally distributed to people. The government should be involved in formulating policies that tend to reduce pollution and enhance market expansion. Further, such policies must encourage all aspects of trade that entail the production, supply, and distribution of coal, which promotes the quality of the product hence, increasing the chances of profit maximization. The second take by the government should include the adoption of the coherent public policy that focuses on the displacement of persons, and the accurate data about the same to ensure the safety of citizens. Mainly, the government and public sectors should dominate the industry so that the entire process of coal exploitation, distribution, and use by humanity is executed (Vasudevachary, 1994).

Vasudevachary (1994) pointed out that the latest technology provides reduced social and environmental impacts, which results from exploration and the extraction of coal using ancient methods. Further, for the Indian government to increase the underground mining, it must apply the gasification and the coal bed methane. The methods are also cost-effective as compared to other methods. The development of the technology roadmap enhances the employee safety and in the process, reduces the impact on the environment.

The implementation of democratic planning that involves the decision of every individual in the mining sector such as the shareholders and the stakeholders are necessary. Thus, the various views of all shareholders and stakeholders are encouraged, leading to conclusive decision-making that is transparent and solves all the problems affecting business operations (Vasudevachary, 1994). Finally, a logical mission and vision statements should be embraced by the management body, and highlighting possible solutions to the social, economic, and environmental issues.

Additionally, risks associated with shareholders and stakeholders should be reduced at all possible costs the new policies regarding the operation. The government should come up with a system that takes care of all possible risks resulting from social, environment, and the investors (Vasudevachary, 1994).

The management can engage in a public hearing, which forms the basis for consensus building between the government agencies, industry and the citizenry. Considerably, the assessment of the viability of the project based on techno-economic grounds and the environmental basis should be conducted before focusing on other factors, which ensures logical strategic plans by the government. Through such, the interests of the local government and those affected by the initiation of the development project are protected (Vasudevachary, 1994).

Other policies that need implementation entail leasing of land for mining rather than entire acquisition. There should be handing over of revenues to the affected people rather than involving the government, and public conveyance of information about the impacts of the development projects. Exploration of innovative approaches that allow for maximum exploitation of coal while reducing environmental pollution and social implications must be incorporated into the system (Vasudevachary, 1994).

Conclusion

Coal generates productive energy used for cooking purposes in most homes in India. It supplements other sources of energy such as electric power used in industries to manufacture goods and services. The natural resource is the dominant producer of energy since other sources need massive capital requirements to exploit them. Arguably, the natural source can apply as an alternative source of energy in industrial processes. As much as the source may seem of importance, there is related setback brought about by its production. One of the crises revolves around the adverse effects on the environment such as the deforestation. The second predicament lies on the social and economic aspects, which involves the displacement and the loss of livelihoods by persons. Finally yet importantly, the third point concentrates on the increased demand for coal due to the presence of unexploited energy sources that could act as alternative sources. It is worth noting that coal is a black combustible material used for cooking (Vasudevachary, 1994).