Lok Sabha Question No. 497 (UNSTARRED), answered on 2023-12-06
Subject: Supply of High End Coal
Ministry: COAL
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION No.497 TO BE ANSWERED ON 06.12.2023

## Supply of High-End Coal

497.   SHRI D.M. KATHIR ANAND:

Will the Minister of COAL be pleased to state:

- (a) whether it is a fact that the Government depends on private companies for adequate supply of high-end coal imported from abroad and if so, the details thereof ;
- (b) the total quantity and value in INR of high-grade coal imported during the last five years, year-wise and the effective measures taken by the Government to reduce the reliance on imported coal in the coming years ;
- (c) whether the Government is facing any problem to take adequate measures to  meet the demand and supply of High grade Coal for various industrial sectors, due to its commitment to reduce carbon foot prints; and
- (d) if  so,  the  details  of  the  total  shortfall  of  high  grade  coal  and  the  remedial action taken by Government in this regard?

## Answer

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

(a):  No,  Sir.  The  Government not depends on private companies for adequate supply of high-end coal imported from abroad.  Therefore, as per current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty.

(b): The quantity and value of coal imported in the last five years are given below.

Import of coal last five years  (Quantity in Million Tonnes and Value in Crores Rs.)

| Years                | ANTHRACITE COAL   | ANTHRACITE COAL   | Coking   | Coking    | Non-coking   | Non-coking   | Total   | Total     |
|----------------------|-------------------|-------------------|----------|-----------|--------------|--------------|---------|-----------|
| Years                | QTY               | Value             | QTY      | Value     | QTY          | Value        | QTY     | Value     |
| 2018-19              | 1.83              | 2038.15           | 51.84    | 72049.76  | 181.68       | 96832.57     | 235.35  | 170920.49 |
| 2019-20              | 1.82              | 1804.15           | 51.83    | 61266.83  | 194.89       | 89661.07     | 248.54  | 152732.05 |
| 2020-21              | 1.96              | 1700.24           | 51.20    | 45355.21  | 162.09       | 68968.61     | 215.25  | 116024.05 |
| 2021-22              | 2.30              | 3402.39           | 57.16    | 102995.85 | 149.47       | 122343.61    | 208.93  | 228741.85 |
| 2022-23              | 2.02              | 4522.1.5          | 56.05    | 15383.99  | 181.62       | 229744.40    | 237.67  | 383584.38 |
| 2023-24 Upto Sept.23 | 1.17              | 1984.21           | 29.39    | 62840.51  | 95.82        | 86678.2.03   | 125.21  | 149518.71 |

The measures taken for reduction of coal imports are given below: (i)  Thrust is on enhancement of domestic coal production which is the key to achieve self-reliance and reduce dependence on imported coal. In the year 202223,  coal  production  increased  by  14.77%  over  the  previous  year.  During  the current year till November, 2023, domestic coal production has increased over 13% compared to the same period of last year. In the current financial year, coal production target is 1012.14 Million tonnes. Similarly, 2025-26, Coal India Ltd. (CIL) will produce One Billion Tonnes alone (ii) Major initiatives taken to increase 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  plant, 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. 100% Foreign Direct Investment is allowed for commercial mining. All these initiatives resulted in production enhancement and import reduction. Had the production through auction mode /commercial coal auction not started, then as per CAGR growth rate we would have needed to import 150.00 MT of coal but we have actually imported only 125.21 MT during the April-Sept. FY 23-24.

(iii) Further an Inter-Ministerial Committee (IMC) has been constituted for the purpose of coal import substitution comprising representatives from Ministry of Coal, Ministry of Power, Ministry of Railways, Ministry of Shipping, Ministry of Commerce,  Ministry  of  Steel,  Ministry  of  Mines,  Ministry  of  Micro,  Small  & Medium Enterprises (MSME), Department for Promotion of Industry & Internal Trade  (DPIIT),  Central  Electricity  Authority  (CEA),  Coal  India  Limited,  SCCL, Paradip Port Trust, Vishakhapatnam Port Trust and Kolkata Port Trust. This Committee  provides  a  platform  for  discussions  on  a  larger  forum  with  the Administrative Ministries so as to guide them to encourage the coal consumers of their respective sector to eliminate imports of coal.

(c)&(d): As of now, most of the requirement of coal in the country is met through domestic production. However, some high-grade coal like coking coal, anthracite and low ash thermal coal, used by imported coal based (ICB) power plants, are essential to import as their domestic production is non-available. The focus of the Government is on increasing the domestic production of coal and to eliminate non-essential import of coal in the country.

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