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Industry Intelligence

India's Coal Production Rises, Environment Ministry Eases Regulations To Meet Demand

22 Feb 2023
India's Coal Production Rises, Environment Ministry Eases Regulations To Meet Demand

To meet rising energy demands, the Environment Ministry in India has eased coal production regulations in the country. The decision has been welcomed by coal companies, as it will help them meet increasing demand, but it has also led to concerns from environmentalists, who fear an increased use of fossil fuels will lead to further damage to the environment. Letโ€™s look at the latest developments and the potential impacts they could have on the environment.

Steady Rise In Indiaโ€™s Coal Production

Indiaโ€™s coal production has seen a steady rise in the past few years, with all India coal production in 2021-2022 being 778.19 MT, compared to 716.08 MT in the previous year. The current financial year has also witnessed a growth of about 16% in coal production, with the country producing around 698.24 MT of coal as compared to 602.49 MT during the same time in the last year.ย 

Environmental Clearance For Mining Expansion

Despite the lack shortage of coal in the nation, the Ministry of Coal has asked the Ministry of Environment, Forest, and Climate Change (MoEF&CC) to permit coal mines to increase their production by up to 50% without conducting a new environmental impact assessment or seeking input from the general public. The MoEF&CC has given consideration to this request and issued two OMs to that end.

Enhanced Coal Supply To Power Sector

The supply of coal to power plants is a continuous process, and the government has taken several measures to address the issue of coal supplies to the power sector. An inter-ministerial sub-group has been constituted, comprising representatives from various ministries and companies, to take various operational decisions to enhance the supply of coal to thermal power plants and to alleviate critical coal stock positions in power plants.

Regular Monitoring Of Coal Dispatch

Coal dispatch from the captive coal blocks is being monitored regularly, and Coal India Limited and Singareni Collieries Company Limited, the largest suppliers of coal in the country, have dispatched 572.25 MT and 54.1 MT of coal respectively in the current fiscal year (April 2022 โ€“ January 2023).

Insight

The steady rise in coal production in the country is a positive sign, and the government is taking all necessary measures to ensure an uninterrupted supply of coal to the power sector. The steps taken by the government to enhance the supply of coal and to monitor the dispatch of coal are commendable and will go a long way in meeting the energy needs of the country.

Read more โ€“ US Plans To Release More Crude Oil From Strategic Petroleum Reserve

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