Lok Sabha Question No. 5444 (UNSTARRED), answered on 2017-04-06
Subject: Demand and Supply of Coal
Ministry: COAL
Asked by: KIRRON KHER, RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION No. 5444

## TO BE ANSWERED ON 06.04.2017

## Demand and Supply of coal

## 5444. SHRIMATI KIRRON KHER: SHRI RAMSINH RATHWA:

Will the Minister of COAL be pleased to state:

- (a) the demand and supply of coal in the country during each of the last three years and the current year, company and State-wise;
- (b) whether the reasons behind the mismatch/differences in demand and supply of coal has been analysed and if so, the details thereof;
- (c) whether initiatives have been taken to reduce the discrepancies in demand and supply of coal by increasing the production of coal in the country and if so, the details thereof; and
- (d) whether  the  import  of  coal  has  increased  due  to  the  inability  to  meet  the demand for coal in the country and if so, the details of import of coal during the said period?

## Answer

## MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  COAL,  POWER,  NEW  & RENEWABLE ENERGY AND MINES

## (SHRI PIYUSH GOYAL)

(a):  As  per  Annual  Plan  2016-17  of  Ministry  of  Coal,  the  all  India    demand  and supply of coal during last three years and the current year is given below:-

| Year                                                                       | 2013-14                                                                    | 2014-15                                                                    | 2015-16                                                                    | 2016-17                                                                    |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Total demand (Mte)                                                         | 769.69                                                                     | 787.03                                                                     | 822.36 *                                                                   | 884.87                                                                     |
| Total domestic Supply (Mte)                                                | 572.06                                                                     | 603.775                                                                    | 632.17                                                                     | 584.83@                                                                    |
| *Revised estimates as per NitiAayog. @ Domestic Supply April-Feb. 2016-17. | *Revised estimates as per NitiAayog. @ Domestic Supply April-Feb. 2016-17. | *Revised estimates as per NitiAayog. @ Domestic Supply April-Feb. 2016-17. | *Revised estimates as per NitiAayog. @ Domestic Supply April-Feb. 2016-17. | *Revised estimates as per NitiAayog. @ Domestic Supply April-Feb. 2016-17. |

State-wise and company-wise demand of coal is not estimated separately.

(b): Demand of coal is higher than the current level of supply of coal in the country. During the year 2015-16, as against a total consumption of 832.05 Mte (prov.), the domestic supply was 632.17 Mte. Due to limited availability of low ash coal in the country, this type of coal is being imported in the country. Further, superior quality of  non-coking  coal  is  imported  mainly  by  coast  based  power  plants  and  other industrial  user's  viz.  paper,  sponge,  iron,  cement  and  captive  power  plants,  on consideration on transport logistics, commercial prudence, export entitlements and inadequate availability of such superior coal from indigenous sources.

(c): The focus of the Government is to increase coal production to the extent possible by facilitating Environment & Forest clearances expeditiously, pursuing with State Government for assistance in land acquisition and coordinated efforts with Railways for movement of coal.

(d):  The import of coal during the last three years and current year is given below:-

| Country                           | Import of Coal (                  | Import of Coal (                  | Quantity in Million tonnes)       | Quantity in Million tonnes)       |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
|                                   | 2013-14                           | 2014-15                           | 2015-16                           | 2016-17*                          |
| Total                             | 166.86                            | 217.78                            | 199.88                            | 164.07                            |
| * Upto the month of January, 2017 | * Upto the month of January, 2017 | * Upto the month of January, 2017 | * Upto the month of January, 2017 | * Upto the month of January, 2017 |

On account of increased domestic production, coal imports have fallen from 217.78 Mte in 2014-15 to 199.88 Mte in 2015-16. The trend of fall in import of coal has continued in 2016-17 wherein for the period April 2016-January 2017, coal imports have reduced by 2.59% as compared to the corresponding  period of the previous year. In 2016-17 (till Feb 2017), import by indigenous coal based power plants has been  15.3  MT  lower  than  corresponding  period  of  2015-16.  In  2016-17  (till  Dec 2016),  coking  coal  import  has  been  1.93  MT  lower  than  corresponding  period  of 2015-16.  However,  import  of  coal  is  not  solely  dependent  on  the  domestic production of coal. It also depends  on  other  factors  like  power  plant  designed on  imported  coal and insufficient availability of coking coal of required grade in the country.

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