India’s total coal production in 2021-2022 was 778.19 million tonnes (MT) compared to 716.083 MT in 2020-21. Further, in the current financial year (up to June 22), the country produced 204.876 MT of coal compared to 156.11 MT during the same period last year with an increase of about 31%.The government has taken the following steps to increase domestic coal production and reduce coal imports:
•Regular Monitoring: A Monitoring Committee has been constituted under the Chairmanship of 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 expedite block development.
•The Mines and Minerals (Development and Regulation) Amendment Act, 2021: The Act provides that owners of captive mines (other than nuclear minerals) may sell up to 50% of their annual production of minerals (including coal) on the open market . after fulfilling the requirement of the end-use plant connected with the mine in such manner as may be prescribed by the Central Government and upon payment of such additional amount. The move is an attempt to incentivize coal block allottees to start mining coal early.
• Commercial Coal Mining Scheme: Commercial Mining Auction for Revenue Sharing Mechanism was launched on 18th June 2020 by Hon’ble Prime Minister. To date, the auction process of a total of 46 coal blocks has been completed, and an insertion order has been made for 27 of these blocks. The terms of commercial coal mining are very liberal with no restrictions on the use of coal, which allows new companies to participate in the bidding process, a reduced advance amount, adjustment of the advance amount against the monthly payment, liberal efficiency parameters to support flexibility in the operation of coal mines, a transparent bidding process and a revenue sharing model based on the National Coal Index.
•Early Commencement of Coal Mining: Under the commercial mining scheme, a discount of 50% on the final bid would be allowed for the quantity of coal produced before the scheduled date of mining. The ministry also provided incentives for coal gasification or liquefaction (50% discount on final bid). These incentives are provided to enthuse the allocated to start early production.
•Auction of Abandoned Mines in CIL: CIL offered 20 closed coal mines for reopening on revenue sharing basis.
•Coal India Limited (CIL), which accounts for more than 80% of domestic production/supply, has envisaged a plan to increase its production to reach the level of one billion tonnes (BT) of coal by 2024-25 from its current production at the level of about 622 MT in order to meet the demand for coal domestically and eliminate the insignificant import of coal into the country. CIL has already identified all the required resources and associated issues/enabling elements like EC/FC requirement, land acquisition, evacuation restrictions etc. to achieve one BT production plan.
Coal India Limited, the country’s largest coal supplier, has shipped 199.4 MT of coal to the power sector in 2022-23 (April-July), registering a growth of 19.1% over the same period last year. CIL has already started construction of warehouse on its railway sidings along with good sheds and private sheds and wharves (CIL sidings: 1.71 MT, Good Shed: 1.63 MT, Pvt.Washery: 1.67 MT & wharf: 1.95 MT , total: 6.96 MT) as of 31.7.2022, in order to ensure sufficient energy supply. According to the Central Electricity Authority (CEA), coal stocks in power plants improved from 25.6 MT as on 31.03.2022 to 30.2 MT as on 2.8.2022.
The following measures are taken to solve the issue of coal supplies to the energy industry.
An inter-ministerial sub-group consisting of representatives of Ministries of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and SCCL meets regularly to take various operational decisions to increase coal supply to thermal power plants and also to meet any contingency of power related situation including mitigating critical position coal reserves in power plants.
 In addition, an Inter-Ministerial Committee (IMC) consisting of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power has been constituted to monitor the increase in coal. energy supply and production capacity. Secretary, Ministry of New and Renewable Energy and Chairman CEA are co-opted as special invitees as and when required by IMC. The dispatch of coal from coal blocks is also regularly monitored. This information was given by the Union Minister for Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in the Rajya Sabha today.
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