Ministry of Coal releases “Strategy Paper on Coal Import Substitution” | Current Affairs | Vision IAS
News Today Logo

    Ministry of Coal releases “Strategy Paper on Coal Import Substitution”

    Posted 08 Mar 2024

    Updated 25 Mar 2024

    2 min read

    • This has been prepared by the Inter-Ministerial Committee, constituted by the Ministry for making recommendations on import substitution of coal by 2030.

     

    • Key observations:
      • Despite having rich coal deposits (around 378.20 billion tonnes), India is second largest importer of coal, importing 237 MT in FY2023 costing ₹3.83 Lakh Crores.
        • Coal is majorly consumed for electricity generation in India (about 64%), followed by steel and cement sectors.
      • Energy consumption matrix: Coal dominates and accounts for 56% of primary energy consumption.
        • Accounts for 76% of electricity generation and will remain major fuel with 55% share by FY2030.

     

    • Factors behind Coal import:
      • Smaller and lower quality reserves of coking coal.
      • Less availability of high gross calorific value coal.
      • Challenges in developing new coal mines related to land acquisition, delay in obtaining statutory clearance etc. 
      • Logistics constraints for evacuation.

     

    • Recommendations:
      • Implementation of Coal Logistic Plan as high priority
      • Utilization of raw coking coal production and adoption of Stamp Charging battery technology in steel sector.
      • Enhancing Washing Capacity in India to 140 MT by 2030.
      • Enhancing coal gasification based Direct Reduced Iron for steel making
      • Rationalization of GST Compensation Cess on coal.

     

    Government measures for coal import substitution

    • Vision 2030: Increase in Coal and lignite production.
    •  Auction and operationalization of more commercial/captive coal blocks.
    • Coal Logistic Policy and coal evacuation plan for efficient evacuation of coal.
    • Mission Coking coal for production and utilization of domestic coking coal.
    • Technology Upgradation with coal sector digitalization, smart dashboard, remote sensing application etc.
    • Tags :
    • coal import
    • import substitution
    Watch News Today
    Subscribe for Premium Features