Lok Sabha Question No. 707 (UNSTARRED), answered on 2024-02-07
Subject: Growing Coal Demand
Ministry: COAL
Asked by: S. Jagathrakshakan

GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION No. 707 TO BE ANSWERED ON 07.02.2024

## Growing Coal Demand

707. SHRI S.JAGATHRAKSHAKAN:

Will the Minister of COAL be pleased to state:

- a. whether the Government has taken cognizance of the study conducted by the Railway Board, which estimates that India's coal consumption will be increased to 1853 million tons (mt.) considering the high economic growth rate and per capita energy consumption in 2030; and
- b. if so, the details of the steps proposed to be taken by the Government to meet the growing coal demand in the country?

## Answer

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

(a)&(b): No such study has been undertaken by Railway Board. However , Government has initiated several steps to ramp up domestic coal production in the  country  in  order  to  meet  the  growing  coal  demand.  Some  of  the  major initiatives undertaken 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  mode,  increasing  use  of  mass production technologies, new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs for commercial mining. 100% Foreign Direct Investment has also been allowed for commercial mining.

- (ii) Coal India Limited has planned to enhance its coal production through expansion  of  mines  (brownfield  projects),  opening  of  new  mines  (greenfield projects), mechanization and modernization of its mines, both UG & OC.
- (iii) Pan India coal movement through rail mode is the domain of Ministry of Railways. Indian Railways have prepared National Rail Plan (NRP) to create a 'resilient' Railway system for India. It aims to formulate strategies based on both operational capacities and commercial policy initiatives to increase the share of Railways in freight transportation. Further Mission 3000 MT has been given as

an intermediate milestone towards achieving the aforesaid ambitious target of NRP by identifying and prioritizing crucial capacity enhancement works to carry freight including coal.

Indian  Railways  has  undertaken  several  initiatives  to  cater  to  the increased demand of coal transportation in the country and the Railways is fully geared  up  to  meet  those  demands.  The  Gross  Budgetary  Support  (GBS)  in Financial Year (FY) 2022-23 was 1.6 Lakh Crore (BE), which has increased to 2.4 Lakh Crores (BE) in the current FY 2023-24. Similarly, all time high capital expenditure of 2.6 Lakh Crores (BE) has been planned for the current FY 202324 for capacity expansion and asset modernization to support the high growth in the Indian economy.

In addition to the Indian Railways above initiatives/projects, for improving coal evacuation infrastructure, Coal India Limited has also invested about Rs. 20000 Cr. in the construction of seven new railway lines for its expansion mining projects in brownfield areas and new mining projects in Greenfield areas in the State  of  Chhattisgarh,  Odisha  and  Jharkhand.  This  is  in  addition  to  the construction of new railway sidings and renovation and capacity enhancement of old sidings under its command area.

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