Lok Sabha Question No. 3414 (UNSTARRED), answered on 2023-08-09
Subject: Import of Coal
Ministry: COAL
Asked by: Thalikkottai Rajuthevar Baalu

(a)to(c):

- I. As per the existing 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 agreement on payment of applicable duty. Most of the requirement of coal in the country is met through indigenous production. The focus of the Government is on increasing domestic production of coal and eliminating nonessential import of coal. In the year 2022-23, coal production increased by about 14.77% over the previous year. During the current year till July, 2023, domestic coal production has increased by over 9.2% compared to the same period of last year. The domestic coal production is estimated to increase to more than one Billion Tonne (BT) in the current year 2023-24.
- II. The Central Electricity Authority (CEA) has reported that the receipt of domestic coal has increased to power sector from 569.5 Million Tonnes (MT) during 201920 to 731.7 MT during 2022-23 with Compound Annual Growth Rate (CAGR) of 8.6%. Further, during April 2023 -June 2023, coal import by Power Sector has decreased  to  the  level  of  14.21MT  as  compared  to  16.36MT  during  the corresponding period of last year. As per the Daily Coal Report (DCR) of the CEA, the coal stock available as on 5 th  August, 2023 at the Thermal Power Plant (TPP) is 32.09 MT, which is sufficient for around 16 days.
- III. The steps taken by the Government to make the country self-sufficient in the production of coal are as under:
- i. Regular reviews by Ministry of Coal to expedite the development of coal blocks.
- ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 for enabling captive mines owners (other than atomic minerals) to sell up  to  50%  of  their  annual  mineral  (including  coal)  production  in  the  open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government on payment of such additional amount.

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

## UNSTARRED QUESTION No. 3414 TO BE ANSWERED ON 09.08.2023

## Import of Coal

3414.  SHRI T.R. BAALU:

Will the Minister of COAL be pleased to state:

- (a) whether  the  Government  concurs  with  the  view  that  India  must  set  up  coal imports and fix unreliable logistics if it seeks to speed up growth this year and next  and  stave  off  a  recurrence  of  the  2021  coal  crisis  when  inventories  at electricity generators plunged;
- (b) if so, the steps taken/being taken by the Government in this regard; and
- (c) if not, the reasons therefor?

## Answer

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

- iii. Single Window  Clearance portal for the coal sector to speed up the operationalization of coal mines.
- iv. Project  Monitoring  Unit  for  hand-holding  of  coal  block  allottees  for  obtaining various approvals / clearances for early operationalization of coal mines.
- v. Auction of commercial mining on revenue sharing basis launched in 2020. Under commercial mining scheme, rebate of 50 % on final offer would be allowed for the quantity of coal produced earlier than scheduled date of production. Also, incentives on coal gasification or liquefaction (rebate of 50 % on final offer) have been granted.
- vi. Coal India Limited is adopting Mass Production Technologies (MPT) in its Underground  (UG)  mines,  mainly  Continuous  Miners  (CMs),  wherever feasible.  Coal  India  Limited  has  also  envisaged  working  large  numbers  of Highwalls (HW) mines in view of the availability of Abandoned / Discontinued mines. Coal India Limited is also planning large capacity UG mines wherever feasible.
- vii. In  its  Opencast  (OC)  mines,  Coal  India  Limited  already  has  State-of-the-Art technology  in  its  high  capacity  Excavators,  Dumpers  and  Surface  Miners. Digitization  is  being  tried  on  pilot  scale  in  7  of  its  mega  mines  and  shall  be replicated further.
- viii. SCCL has planned to produce 75 MT by 2023-24 from the present level of 67 MT.  Regular liasioning  is  being undertaken  for grounding  of new  projects.  In addition, progress of activities of new projects and operations of existing projects is being regularly monitored.
- IV. Ministry  of  Coal  is  coordinating  with  Ministry  of  Railways  to  enhance  coal evacuation & distribution capabilities. At  present, 13 Railway lines are being constructed in collaboration with the Ministry of Railways for expansion of coal distribution capabilities, which are at various stages of construction.
- V. A total of 67 First Mile Connectivity (FMC) Projects with 885 MT capacity being taken up in 3 phases to achieve capacity of 1 BT mechanized handling of coal. In line with the goal of PM Gati Shakti, the Ministry of Coal has undertaken railway projects costing Rs. 26000 Cr to develop multimodal connectivity.
- VI. To ensure continuous coal supply to power sector an Inter-Ministerial Sub Group comprising representatives from Ministries of Power, Ministry of Coal, Ministry of  Railways,  CEA,  CIL  and  SCCL  meets  regularly  to  take  various  operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal  stock  position  in  power  plants.  In  addition  to  this,  an  Inter-Ministerial Committee (IMC) has been constituted comprising Chairman, Railway Board, Secretary,  Ministry  of  Coal,  Secretary,  Ministry  of  Environment,  Forest  and Climate Change, and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity.

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