In a major stride towards enhancing domestic coal production and reducing coal imports, the Government of India has implemented several measures that have yielded promising results. The focus on bolstering indigenous coal production and eliminating unnecessary imports has seen a surge in production and has set the nation on a path towards self-sufficiency in the coal sector.
The Ministry of Coal has been actively conducting regular reviews to expedite the development of coal blocks, streamlining the process of setting up new mines. Furthermore, the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 has empowered captive mine owners to sell up to 50% of their annual mineral production, including coal, in the open market after meeting the end-use plant’s requirements. This move has opened avenues for private players to contribute to the growth of the sector.
To ensure a seamless and efficient clearance process, the Government has set up a Single Window Clearance portal for the coal sector, expediting the operationalization of coal mines. Additionally, a dedicated Project Monitoring Unit has been established to provide support and guidance to coal block allottees for obtaining approvals and clearances, facilitating early operationalization.
In 2020, the Government launched the commercial mining auction on a revenue-sharing basis, encouraging private participation and innovation in the industry. Coal India Limited (CIL) has also been adopting Mass Production Technologies (MPT) in its underground mines, especially Continuous Miners (CMs), and is planning large-capacity underground mines where feasible. In open-cast mines, CIL has embraced state-of-the-art technology, including high-capacity excavators, dumpers, and surface miners. Digitization is also being piloted in several mega mines to enhance efficiency and productivity.
The efforts have already yielded impressive results, with coal production witnessing a substantial increase of 14.77% in 2022-23 compared to the previous year, and an 8.51% increase in domestic coal production in the current year till June 2023.
To further reduce coal imports, the Government has taken additional measures. The Annual Contracted Quantity (ACQ) has been increased up to 100% of the normative requirement, incentivizing domestic coal supplies and reducing import dependency. Coal linkages have been provided for short-term sales of power generated through transparent bidding processes, allowing power plants to source coal domestically, minimizing the need for imports.
The Inter-Ministerial Committee (IMC), constituted in the Ministry of Coal in 2020 for coal import substitution, has been actively monitoring import data and coordinating efforts to ensure more domestic supplies of coal.
Commenting on the remarkable progress, the Minister of Coal stated, “The surge in domestic coal production and the decline in imports showcase our commitment to fostering self-sufficiency in the coal sector. The Government’s proactive measures and support to private players have led to significant advancements in technology and operational efficiency, strengthening the energy security of our nation.”
With a growth of approximately 58% in coal production over the past decade, India is poised to achieve greater self-reliance in the coal sector. The focus on exploring new mining areas through continuous exploration programs will further support the expansion of domestic production capabilities.
