Coal Sector

Coal remains the bedrock of India’s energy economy, commanding a 55% share of the primary energy mix, the third‐highest among Group of 20 (G20) countries.

  • India is the world’s second‐largest coal market, with plentiful domestic reserves.
  • Indian mines produce over 700 million tonnes (Mt) of coal per year, mostly in the eastern part of the country in Odisha, Chhattisgarh, Jharkhand and Madhya Pradesh.
  • The vast majority of production comes from open pit mining. Since the 1970s, government‐owned Coal India Limited (CIL) has been the dominant coal producer and today it is the world’s largest coal mining company, supplying over 80% of the country’s domestically produced coal.

Issue

  • Despite, India has the world’s fifth‐largest proven coal reserves, its domestic production has been unable to keep pace with demand.
  • This has resulted in a steady rise in imports in recent years although the growth of import dependence on thermal coal has slowed since the mid‐2010s as a result of increased domestic production and lower demand growth.

Coal Governance

Government has taken efforts to ensure more domestic supplies of coal:

  • Coal India Limited has been asked to plan zero coal Import Mission by 2023-24 for substitutable coal.
  • CIL introduced a new e-auction window ‘Special Spot e-auction Scheme, 2020 for Import Substitution.
  • To encourage domestic coal production enhancement, captive mine lessees are allowed to sell coal or lignite up to 50 % of the total coal or lignite produced in a financial year after meeting certain requirements.
  • Necessary amendment in MMDR Act, 1957 has been carried out through Mines and Minerals (Development and Regulation) Amendment Act, 2021.

In order to enhance coal production, Coal India Limited (CIL) has taken the following steps:

  • Implementing on-going projects in time bound manner to achieve targeted production as per schedule.
  • 15 Greenfield Projects identified with a Capacity of about 160 Mty to be operated by Mine Developer cum Operator mode.
  • Manual loading method eliminated in all underground mines of CIL (except one mine of CCL) by introducing Side Discharge Loader (SDL)/ Load Haul Dump (LHD) loading in conjunction with belt conveyors.
  • Introduction of Surface Miners in opencast mines to improve operational efficiency and cater to environmental needs.
  • Introduction of Mass Production Technology in underground coal mines.

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