The government said increase in coal output has amounted to significant reduction in imports of the fossil fuel and stressed that it is continuing all efforts to further enhance coal production in the country. The statement assumes significance in the wake of captive power plants in sectors like steel and aluminium facing coal shortages.
“The government is continuing all efforts to further enhance the coal production in the country as availability of additional coal will aid in import-substitution of coal,” the coal ministry said in a statement.
The reforms in the coal sector have led to an increase in domestic production of coal by 9.01% and the overall production of the dry fuel rose to 447.54 million tonnes (MT) till November this fiscal, compared to 410.55 MT in the corresponding months of FY’20.
The financial year 2020-21 is not being taken for comparison purpose due to industrial production getting severely affected because of COVID-19 related restrictions, it added.
“With increase in domestic production of coal, we have achieved significant reduction in import of coal despite surge in power demand,” the statement said.
The coal-based power generation up to November 2021 was 671.906 billion units (BU), an increase of 5.17% over 638.82 BU generated during the corresponding period of FY’20.
Imported coal based power generation, which was 61.78 BU during April to November 2019, reduced by 51.38% to 30.036 BU in the corresponding months of FY’22.
Imports of all grades of non-coking coal has reduced to 107.36 MT during April to November, from 131.51 MT during the corresponding months of FY’20, a decline of about 18.36%.
The import of non-coking coal primarily used in power sector has decreased by 57.59%, from 46.53 MT to 19.73 MT till November 2021, which has opened the doors for India to become self-reliant in coal production.
Overall import of coal has also reduced to 147.14 MT in the April-November period, as against 165.57 MT during the corresponding months of FY20, a decrease of about 11.13%.
This has resulted in significant savings of forex reserves this year, especially when the coal prices are at a high level in the international market, it noted.
India is the world’s third largest energy consuming country and electricity demand grows by 4.7 per cent each year.
To reduce the dependence on imports of coal, major reforms have been carried out by the coal ministry with the vision of ‘Atmanirbhar Bharat’.
“The Ministry has also amended the Mineral Concession (Amendment) Rules, 1960 under MMDR (Amendment) Act, 2021 to allow lessee of captive mines to sell coal or lignite up to 50% of the total excess production after meeting the requirements of the end-use plant,” it said.
With this amendment, the ministry “has paved the way for releasing of additional coal in the market by greater utilisation of mining capacities of captive blocks which has led to increase in production of coal by 36.06% from 39.15 MT up to Nov 19 to 53.27 MT during corresponding period of FY’22,” it said.
