Supply of High-End Coal; Measures taken to Reduce Coal Import

The Government does not depend 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.

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

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 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) 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.

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.

This information was given by Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Lok Sabha today.