Lok Sabha Question No. 308 (UNSTARRED), answered on 2018-12-12
Subject: Rise in Coal Imports
Ministry: COAL
Asked by: VINCENT H PALA

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION No. 308 TO BE ANSWERED ON 12.12.2018

## Rise in Coal Imports

## 308.  SHRI VINCENT H.PALA

Will the Minister of COAL be pleased to state:

- (a) the reasons for rise in India's coal imports by 38.2% to Rs. 1,38,477 crore in 2017-18;
- (b) the  details  of  steps  taken  to  address  the  increasing  dependence  on  coal imports;
- (c) the details of the latest coal production data by Coal India Limited (CIL); and
- (d) whether the target to produce one billion tonne of coal by 2020 by CIL will be achieved and if so, the details thereof?

## ANSWER

## MINISTER OF RAILWAYS AND COAL

## (SHRI PIYUSH GOYAL)

(a): The value of India's coal imports have risen by 38.2% to Rs.1,38,477 crore in 2017-18. However, the quantity of coal imports has increased only by 9.1% from 190.95MT to 208.27MT during this period.

The increase in value of coal imports is primarily due to:

- i) Increase in international coal price leading to greater value  increase as compared to absolute quantity increase in 2017-18.
2. ii) Increase in value of imported coking coal.   India is deficient in coking coal and as such imports of coking coal are inevitable. In 2017-18 the value of imported coking coal grew by 44%, from Rs. 41,230.06 crores to Rs.59,522.63 crores.
3. iii) Many thermal power station are configured to use imported coal. As such  imports  by  these  thermal  power  plants  are  inevitable.  During April-October  2018,  these  power  plants  have  imported  22.27  MT  of coal.
4. iv) The  imported  quantity  of  2017-18  at  208.27  MT  is  less  than  the imported  quantity  of  2014-15  which  stood  at  217.79  MT  even  as power  generation  and  industrial  activity  grew  substantially  after 2014-15.

This  was  possible  due  to  increased  production  of  domestic  coal,  better quality  management  as  well  as  improvement  in  availability  of  coal  by improvement in transport infrastructure.

Thus, while there is an absolute increase in the value of the imports, the reasons are multifunctional and are not directly proportionate to domestic production alone.

(b): There has been a consistent effort to increase domestic coal production so as  to  reduce  dependence  on  coal  imports.  The  all  India  raw  coal  production has increased from 565.77 MT in 2013-14 to 676.48 MT in 2017-18. Absolute increase in all India coal production from 2013-14 to 2017-18 (four years) is 110.71 MT as compared to increase of coal production of 33.73 MT from 200910 to 2013-14 (four years).

Coal India Limited (CIL) has also increased its production from 462.41 MT in 2013-14 to 567.36 MT in 2017-18 (four years), an absolute increase of 105 MT as compared to increase of coal production of 31.15 MT between 2009-10 and 2013-14 (four years).

Further,  in  the  current  year  during  April-November,  2018,  all  India  coal production was 433.90 MT with a growth rate of 9.8% and coal production of CIL was 358.32 MT with a growth rate of 8.8% over the corresponding period of previous year.

However, coking coal will continue to be imported as there is limited availability of coking coal in the country. Further, power plants designed on imported coal will also continue to import coal.

(c): In 2018-19 (up to 30.11.2018), CIL has achieved production of 358.32 MT with a growth rate of 8.8% over the corresponding period of previous year.

(d): CIL  had  prepared  one  Billion  Tonne  (BT)  plan  of  production  (by  2020), which was subject to market demand for coal. However, during 2015-16 and 2016-17, there was less coal offtake due to improved coal quality and resultant enhanced efficiency of Power Plants. Coal despatch grew at the rate of 7.2 % against production growth of 9.2 % in 2015-16 and at the rate of 2.9 % against the production growth of 2.8 % in 2016-17. In view of this changed scenario, one Billion Tonne Plan by 2020 is being re-examined.

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