New Delhi: After the coal crisis witnessed in the country earlier this year, the central government has taken several steps to increase domestic coal production and reduce the import of coal to ensure such a situation does not arise again.
The coal production across India in 2021-2022 was 778.19 Million Tonne (MT) in comparison to 716.083 MT in the year 2020-2021. Further, in the current financial year (up to June), the country has produced 204.876 MT of coal as compared to 156.11 MT during the same period last year with a growth of about 31 percent, said Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi in a written reply in the Rajya Sabha on Monday.
A monitoring committee has been constituted under the chairmanship of the secretary (Coal) with chief secretaries from respective host states, secretary (MoEF&CC), Coal Controller Organization (CCO) and CMPDIL as members of the committee to conduct regular reviews and to expedite the development of blocks.
The Act provides that captive mines owners (other than atomic minerals) may sell up to 50 percent 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 and on payment of such additional amount. This step is an attempt to stimulate the coal block allocattees to commence coal production early.
Also read: States importing coal through own orders or giving indents to CIL: Centre
Commercial coal mining scheme
Terms and conditions of commercial coal mining are very liberal with no restriction on utilization of coal, allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against monthly payment, and liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process and revenue sharing model based on the National Coal Index.
Early commencement of coal production
Under a commercial mining scheme, a rebate of 50 percent on the final offer would be allowed for the quantity of coal produced earlier than the scheduled date of production. Also, the ministry has granted incentives for coal gasification or liquefaction (a rebate of 50 percent on final offer). These incentives are granted to enthuse those to whom the blocks have been allotted so that they start early production.
Auction of abandoned mines in CIL
CIL has offered 20 discontinued coal mines for re-opening on a revenue-sharing basis. Coal India Limited (CIL) contributing more than 80 percent of the indigenous production and supply has envisaged a plan to enhance its production to reach the level of one Billion Tonne (BT) coal by the year 2024-25 from its current production level of about 622 MT in order to meet the demand of coal indigenously and to eliminate non-essential import of coal in the country.
Joshi said that Coal India Limited has dispatched 199.4 MT of coal to Power Sector in 2022-23 (April-July) achieving a growth of 19.1 percent over last year's same period. Earlier it was assumed that India would face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages. Joshi said that measures are also being taken to address the issues of coal supplies to the power sector.
“An inter-ministerial sub-group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and SCCL meet 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,” he said.
In addition to this, an Inter-Ministerial Committee (IMC) has been constituted of secretaries of the Railway Board, Ministry of Coal, Ministry of Environment, Forest and Climate Change and Ministry of Power to monitor the augmentation of coal supply and power generation capacity.
