Lok Sabha Question No. 942 (UNSTARRED), answered on 2023-02-08
Subject: Reduction in Import of Coal
Ministry: COAL
Asked by: Rajendra Dhedya  Gavit

GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION No.942 TO BE ANSWERED ON 08.02.2023

## Reduction in Import of Coal

## 942. SHRI RAJENDRA DHEDYA GAVIT:

Will the Minister of COAL be pleased to state:

- (a) whether the coal sector has sufficient potential to contribute substantially in achieving five trillion economy by 2024-25;
- (b) if so, the details thereof;
- (c) whether the country imports a huge quantity of coal from other countries despite huge coal reserves and if so, the details thereof; and
- (d) the major policy decisions that have been taken to drastically reduce imports and increase quality coal for use within the country by 2025?

## Answer MINISTER OF  PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a)&(b): As on 01-04-2022, India had 177.18 Billion Tonne proved coal reserves. For the current year 2022-23, the total domestic coal production target has been fixed  at  911  Million  Tonne.  In  view  of  expected  rise   in   coal  demand  due  to economic  growth,  domestic  coal  production  is  proposed  to  increase  to  1017 Million Tonne in 2023-24 which is further likely to increase by 9-10% in 202425.

(c): About 20-25% of the coal demand  in the country is met from import. Import of coal mainly consists of essential import like coking coal and higher grade coal as  their  domestic  production  is  limited  due  to  either  scarce  reserves  or  nonavailability. Power sector also  imports coal for two reasons- design-led import for  imported  coal-based  (ICB)  power  plants  setup  in  coastal  region  which are   specially  designed  to  use  imported  coal   and  for  blending  purpose  for domestic coal-based (DCB) power plants. Details of   import of coal in the last three years  are given  as under:

## (Figures in Million Tonne)

| Year    |   Total Supply/ Consumption |   Import |   % of import |
|---------|-----------------------------|----------|---------------|
| 2019-20 |                      955.91 |   248.54 |         26    |
| 2020-21 |                      906.33 |   215.25 |         23.74 |
| 2021-22 |                     1027.92 |   208.93 |         20.33 |

(d): As mentioned at para-c above, import of coal mainly consists of essential import  like  coking  coal,  and  higher  grade coal  due  to  limitation  in  domestic production. However, measures are being taken to replace substitutable import of  coal  by  ramping  up  domestic  production  of  coal.  100%  Foreign  Direct Investment has been allowed for commercial mining. Other major steps initiated to   enhance   domestic  production  of  coal  include  Single  Window  Clearance, amendment  of  Mines  and  Minerals  (Development  and  Regulation)  Act,  1957 to  allow captive mines to sell up to 50% of their annual  production after meeting the  requirement  of  the  end  use  plants,  production  through  MDO  model, increasing use of modern technologies such as surface miner, continuous miner etc., taking up new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs.

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