Lok Sabha Question No. 55 (STARRED), answered on 2023-12-06
Subject: Steps to reduce Dependency of Coal Imports
Ministry: COAL
Asked by: Ravindra Kushawaha, Hasmukhbhai Somabhai Patel

GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA STARRED QUESTION No. 55 TO BE ANSWERED ON 06.12.2023

## Steps to reduce dependency of coal imports

- *55. SHRI RAVINDRA KUSHWAHA: SHRI PATEL HASMUKHBHAI:

Will the Minister of COAL be pleased to state:

- (a) whether the Government is planning to curb the import of coal in the country, if so, the details thereof;
- (b) whether the Government has taken any steps to reduce the dependency of coal imports in the country; and
- (c) If so, the details thereof?

## Answer

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

(a)to(c): A statement is laid on the table of the House.

Statement  in  reply  to  Lok  Sabha  Starred  Question  No.  55  for  answer  on 06/12/2023  by  Shri  Ravindra  Kushwaha  &  Shri  Patel  Hasmukhbhai,  MP regarding steps to ' Steps to reduce dependency of coal imports '

(a)to(c): 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. During 2022-23, in India  coal  production  was  893.19  MT  registered  14.77%  growth  over  previous financial year. During the current year till November, 2023, coal production was 591.40 MT registering 13% growth compared to the same period of pervious year.

Further, in the current year 2023-24, coal import upto the month of Sept.2023 was 125.21 MT which is a decline of 5% over the corresponding period last year. 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.

## Measures taken by the Government to substitute coal imports:

- 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 2022-23, 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. The ACQ has been increased upto 100% of the normative requirement, in the cases where the ACQ was either reduced to 90% of normative requirement (noncoastal) or where the ACQ was reduced to 70% of normative requirement (coastal power plants). Increase in the ACQ would result in more domestic coal supplies, thereby, reducing the import dependency.
- iii. Under the provisions of Para B (viii) (a) of SHAKTI Policy, coal linkage is provided for short term for sale of power generated through that linkage in any product in  power  exchanges  or  in  short  term  through  transparent  bidding  process through DEEP portal. In addition, with the amendment to the NRS linkage auction policy introduced in 2020, the tenure of coking coal linkages in the NRS linkage auction has been revised for a period upto 30 years. The coal offered for short term to the Power Plants under the amended provisions of SHAKTI Policy as well as increase in the tenure of the coking coal linkages in the Non-Regulated Sector linkage auction for a period upto 30 years is expected to have a positive impact towards coal imports substitution.
- iv. Government has decided in 2022 that the coal to meet the full PPA requirement of all the existing linkage holders of Power Sector shall be made available by the coal companies. The decision of the Government of meeting the full PPA requirement of the  linkage  holders  of  the  Power  Sector  shall  reduce  the  dependence  on  the imports.
- v. An Inter - Ministerial Committee (IMC) has been constituted in the Ministry of Coal  on 29.05.2020  for the purpose  of coal import substitution.  The Representatives  from  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 Companies and Ports are members of this IMC. Nine meetings of the IMC have been held so far. On the directions of the IMC, an Import Data System has been developed by Ministry of Coal to enable the Ministry to track the imports of coal. Efforts are taken to ensure more domestic supplies of coal.

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