Government Focuses on Boosting Domestic Coal Production and Reducing Imports: Joshi

TFP Bureau New Delhi, July 25, 2023: India’s coal requirements are predominantly fulfilled through indigenous production and supply, as announced in a recent press release by the Press Information Bureau of New Delhi. The government’s unwavering focus lies in further increasing the domestic production of coal while aiming to eliminate unnecessary coal imports in the country. Notably, during the year 2022-23, coal production saw a significant rise of 14.77% compared to the previous year. Moreover, the current year until June 2023 witnessed a commendable 8.51% surge in domestic coal production when compared to the corresponding period of the previous year. These figures affirm the government’s efforts in making the country self-reliant in coal production.

The Union Minister of Coal, Mines, and Parliamentary Affairs, Shri Pralhad Joshi, addressed the Rajya Sabha on Monday, providing insight into the Ministry of Coal’s ongoing initiatives. The ministry is diligently reviewing the development of coal blocks to expedite the process. To facilitate the operationalization of coal mines, a Single Window Clearance portal for the coal sector has been established, along with a Project Monitoring Unit to assist coal block allottees in obtaining necessary approvals and clearances promptly. Furthermore, the government launched the auction of commercial mining on a revenue-sharing basis in 2020, introducing incentives and rebates for coal producers.

In an effort to optimize coal production, the Coal India Limited (CIL) has adopted Mass Production Technologies (MPT) in its Underground (UG) mines, particularly utilizing Continuous Miners (CMs) wherever feasible. CIL is also looking into working with a large number of Highwalls (HW) mines, considering the availability of abandoned or discontinued mines, and plans to develop large capacity UG mines where possible. The Opencast (OC) mines under CIL have already integrated state-of-the-art technology, including high-capacity Excavators, Dumpers, and Surface Miners. Additionally, CIL is conducting pilot-scale digitization projects in seven of its mega mines to explore the benefits of automation.

Meanwhile, the Singareni Collieries Company Limited (SCCL) is determined to enhance its coal production from the current level of 67 million tonnes to 75 million tonnes in the current financial year. The company is actively liaising for the initiation of new projects and closely monitoring the progress of existing ones.

In parallel, the government has undertaken numerous measures to substitute coal imports with domestic supplies. To achieve this goal, an increase in the Annual Contracted Quantity (ACQ) of coal has been proposed to boost domestic coal supplies, thereby reducing import dependency. The government has also introduced the SHAKTI Policy, providing coal linkages for short-term power sales in the Day Ahead Market (DAM). Furthermore, amendments to the Non-Regulated Sector linkage auction policy and SHAKTI Policy are expected to positively impact coal import substitution, allowing for longer tenure coking coal linkages of up to 30 years.

While the government strives to enhance the nation’s self-sufficiency in coal production, it is crucial to note that, in the past three years, 20 coal mines under CIL have been abandoned.

The government remains committed to bolstering domestic coal production, implementing cutting-edge technologies, and promoting self-reliance to secure India’s energy future.