Domestic Production of Coal in India Increases, Reducing Need for Imports

India is one of the world’s largest consumers of coal, and as such, the country has made a concerted effort to increase domestic production in recent years. The focus of the Indian government is on eliminating the need for non-essential coal imports and increasing self-reliance. The efforts seem to be paying off, as the country saw an 8.67% increase in coal production in 2021-22 compared to the previous year.

In the current year, the domestic production of coal has increased by over 15% compared to the same period in the previous year. The trend is expected to continue, with estimates suggesting that domestic coal production will increase to more than 1 billion tonnes in 2023-24.

Steps Taken to Ramp Up Domestic Coal Production

The Indian government has taken several steps to boost domestic coal production, including Single Window Clearance and the amendment of the Mines and Minerals (Development and Regulation) Act, 1957. The latter now allows captive mines to sell up to 50% of their annual production after meeting the end-use plants’ requirements. Other measures include production through MDO mode, increasing the use of mass production technologies, and auctioning coal blocks to private companies/PSUs.

To further increase domestic coal production, 100% foreign direct investment has been allowed for commercial mining. The move is expected to attract foreign companies and boost investment in the sector.

Reduced Need for Thermal Coal Imports

The increase in domestic production of coal has reduced the need for thermal coal imports. The data shows that in the last five years, the import of thermal coal has decreased from 196.7 million tons in 2019-20 to 151.77 million tons in 2021-22.

Insight

In conclusion, India’s efforts to increase domestic coal production have been successful, and the country is moving closer to achieving self-reliance in this sector. The government’s initiatives and policies have played a crucial role in boosting production, reducing the need for thermal coal imports, and attracting investment in the sector.

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