Substantial
Reduction in Coal Import Due to Stepped up Domestic Production
· About
20-25% of the coal demand in the country is met from import. Import of coal mainly
consists of essential import like coking coal and higher grade
coal as their domestic production is limited
· Design-led
import for imported coal-based (ICB) power plants setup in coastal region which
are specially designed to use imported coal and for blending purpose for domestic
coal-based (DCB) power plants.
· 100%
Foreign Direct Investment has been allowed for commercial mining.
As on 01-04-2022, India had 177.18
Billion Tonne proved coal reserves. For the current year
2022-23, the total domestic coal production target has been fixed at 911 Million Tonne. In view of expected rise in coal demand due to
economic growth, domestic coal production is proposed to increase to 1017 Million Tonne in 2023-24 which is further likely to increase
by 9-10% in 2024-25.
About 20-25% of the coal demand
in the country is met from import. Import of coal mainly consists of essential import
like coking coal and higher grade coal as their domestic
production is limited due to either scarce reserves or non-availability. Power sector
also imports coal for two reasons- design-led import for imported coal-based (ICB)
power plants setup in coastal region which are specially designed to use imported
coal and for blending purpose for domestic coal-based (DCB) power plants. Details
of import of coal in the last three years are given as under:
(Figures in Million Tonne)
|
Year |
Total
Supply/Consumption |
Import |
% of import |
|
2019-20 |
955.91 |
248.54 |
26.00 |
|
2020-21 |
906.33 |
215.25 |
23.74 |
|
2021-22 |
1027.92 |
208.93 |
20.33 |
As mentioned at para-c above, import of coal mainly consists
of essential import like coking coal, and higher grade
coal due to limitation in domestic production. However, measures are being taken
to replace substitutable import of coal by ramping up domestic production of coal.
100% Foreign Direct Investment has been allowed for commercial mining. Other major
steps initiated to enhance domestic production of coal include Single Window Clearance,
amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow
captive mines to sell up to 50% of their annual production after meeting the requirement
of the end use plants, production through MDO model, increasing use of modern technologies
such as surface miner, continuous miner etc., taking up new projects and expansion
of existing projects, and auction of coal blocks to private companies/PSUs.
This information was given by
Union Minister of Coal, Mines and Parliamentary Affairs Pralhad
Joshi in a written reply in Lok Sabha on 8 February, 2023.