Government's Initiatives to Ramp up Domestic Coal Production in India

Situations at home and the rule of “common but differentiating” In order to meet the rising demand from all sectors and achieve self-reliance, the Indian government has taken a number of measures to boost domestic coal output.

Some of the government’s largest projects include the following:

• Mines and Minerals (Development and Regulation) Act of 1957 Amendment and Single Window Clearance: To make the procedure of getting clearances for coal mining projects easier, the government has implemented a single window clearance mechanism. After fulfilling the requirements of the end-use plants, the Mines and Minerals (Development and Regulation) Act of 1957 was modified to permit captive mines to sell up to 50% of their yearly output.
• Production using the Mine Development Operator (MDO) mode: The government has boosted coal production using the MDO mode, which enables private firms to mine coal on behalf of Coal India Limited. (CIL).
• Utilization of mass production technologies: The government has encouraged the use of mass production technologies to increase coal output.
• New Projects and Expansion of Existing Projects: In order to boost coal production, the government has launched new projects and expanded existing projects.
• Coal Block Auction: In order to boost coal production, the government has auctioned coal blocks to private businesses and PSUs. Commercial mining is also open to 100% Foreign Direct Investment.

The Result of the Initiatives

Domestic coal production grew by 8.67% in 2021–2022 compared to the previous year, and it increased by over 15% from the beginning of the current fiscal year through February 2023.

Elimination of Non-essential Import of Coal

The government’s main priorities are to increase domestic coal output and stop all non-essential coal imports into the nation. For the purpose of replacing coal imports, an Inter-Ministerial Committee (IMC) has been established. The IMC provides a forum for more extensive talks with the Administrative Ministries in order to instruct them on how to motivate the coal consumers of their various sectors to cease importing coal.

Insight

The government’s efforts have increased domestic coal production, and the emphasis on stopping non-essential coal imports will help India become self-sufficient in coal production. The quantity and price of coal imported over the previous five years show a declining tendency, which is encouraging for the nation’s energy security. To meet the nation’s rising energy needs, the government should keep working to boost domestic coal output and promote the use of renewable energy sources.

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