- Union Minister of Coal has informed that coal and lignite production has grown by more than 70% over last 10 years owing to favourable government support.
- Significance of the achievement: Energy security, saving on India’s Forex reserves, achieving target to replace import of coal for power generation by 2025-26, etc.
- Current Status of Coal Sector in India
- India has 5th largest geological reserves of coal and is 2nd largest consumer of coal across the world.
- Production: Coal India Limited (CIL) is the largest producer (>70%) of coal in India.
- Import: India imported 217.75 million tonnes coal in FY 2023-24 (till Jan 2024), dominated by non-coking coal (~77% of total imports)
Key reforms undertaken in the Coal sector
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- Challenges of coal sector in India
- Un-seasonal and extended rainfall in the coal bearing areas.
- Non-payment of outstanding dues by Power sector consumers.
- Frequent labour/ Industrial relations issues in the coal fields.
- Land acquisition and environmental challenges.
- Lower coal quality with presence of high ash and sulphur content.
- Technological obsolescence in mining techniques resulting in lower productivity, higher costs, and safety hazards.