Friday, 17 May, 2024
By: Yash Gupte
The government has taken several steps in order to reduce imports and maintain a constant supply of coal in the country. Image Source: IANS
The country wide coal production in the year 2021-22 was 778.19 MT as compared to 716.08 MT in 2020-21. Around 28 of the top 37 coal mines produced more than 100 percent of their total output in January 2023.
According to preliminary data from the Ministry of Coal, India's output of coal climbed significantly by 15.10 percent to 784.41 Million Tons (MT) between April 22 and February 23 from 681.5 MT produced during the same period of FY 22. Up until February of FY 23, Coal India Ltd (CIL) recorded production of 619.70 MT, up from 542.38 MT during the same time of FY 22, reflecting an increase of 14.26 percent. The Ministry has put 141 new coal blocks up for commercial bidding with the goal of boosting coal production capacity. It has also been communicating regularly with various coal companies and keeping an eye on their output. The country wide coal production in the year 2021-22 was 778.19 MT as compared to 716.08 MT in 2020-21. Around 28 of the top 37 coal mines produced more than 100 percent of their total output in January 2023, and three other mines produced between 80 and 100 percent.
The chart below shows consumption, import and domestic supply of coal.
Source: Ministry of Coal
Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi in a written reply to Lok Sabha said that there is enough supply of coal in the country and there is no shortage of coal. The data shows that the demand/ consumption of coal has been rising over the years. The demand of coal in 2021-22 was 1027.92 MT whereas the supply of coal during the same period was recorded at 1027 MT (Total Import – 208.93 MT + Total Supply- 818.99 MT).
The government has taken several steps in order to reduce imports and maintain a constant supply of coal in the country. Some of the steps are- Regular reviews by Ministry of Coal to expedite the development of coal blocks, Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines, Project Monitoring Unit for handholding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines. Apart from this the Ministry of Coal has requested the Ministry of Environment, Forest and Climate Change (MoEF&CC) to allow coal mines with existing Environmental Clearances to increase their production up to 40 percent, to hike by up to 50 percent without Fresh Environmental Impact Assessment or Public Consultation. Talking about the import of coal, according to the current import policy, consumers themselves may freely import coal (under Open General Licence) based on their own needs and commercial discretion.
Steel Authority of India Limited (SAIL) and other steel-making facilities import coking coal primarily to fill the gap between demand and supply domestically and to improve the quality. Non-coking coal is imported by coal based power stations, cement factories, captive power plants, sponge iron plants, industrial customers, and coal traders. Pig-Iron producers and other consumers in the Iron & Steel sector use mini-blast furnaces to import coke.
In order to monitor the augmentation of coal supply and power generation capacity, an Inter-Ministerial Committee (IMC) has been constituted comprising of Chairman, Railway Board; Secretary, Ministry of Coal; Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power. But it needs to be understood that in order to increase the power generation capacity in the country, India must deviate from the use of fossil fuels for power generation.
Over 70 percent of India's power generation capacity comes from coal plants alone, demonstrating the nation's heavy reliance on fossil fuels. Solar energy makes up 14.3 percent of all renewable energy sources, followed by hydroelectricity (11.6 percent) and wind (10 percent). Less than 2 percent of India's power generation capacity is based on nuclear energy. By exploring and utilising the alternate sources of electricity generation, India must focus on minimising its coal imports.
Exploring and utilising the alternate sources of electricity generation is extremely important for the country as India faced massive power outages and crisis in the previous year. The increased demand for electricity was triggered by hotter-than-normal temperatures. The electricity supply in the country had fallen short of demand due to a shortage of coal, which fuels 70 percent of India’s power demand. As per the reports, coal stocks, at more than 100 thermal power plants in India, had fallen below 25 percent of the required stock. Also, the Russia- Ukraine war had led to a disruption in international supply chains, making the import of coal much more expensive. Therefore, learning from the past instances, the country must minimise its dependence on fossil fuels.
