Decline in the Share of Imported Coal over the Last Decade

Posted 29 Jun 2024

2 min read

As per Ministry of Coal, Compound annual growth rate (CAGR) of imported coal share fell from 13.94% (2004-05 to 2013-14) to -2.29% (2014-15 to 2023-24).

Under Open General Licence: Coal can be freely imported by the consumers themselves considering their needs based on their commercial consideration.

Measures taken to reduce coal import

Amendment of Mines and Minerals (Development and Regulation) Act, 1957: to allow captive mines to sell up to 50% of their annual production.
Foreign Direct Investment(FDI): 100% FDI allowed for commercial mining.
Coal Area Expansion: Taking up new projects and expansion of existing projects,auction of coal blocks to private companies/PSUs,etc.
Single Window Clearance portal: for the coal sector to speed up the operationalization of coal mines.

Challenges of Coal Mining

Non availability of domestic production of high grade coals like coking coal, anthracite and low ash thermal coal, etc in India.
Non-Payment of commensurate Coal value along with huge outstanding dues by Power Sector consumers.
Un-seasonal and extended Rainfall in the coal bearing areas.

About Coal Sector in India

Fifth-largest coal reserves in the world and stands as the second-largest consumer of coal.
All India Production of coal during 2023-24 was 997.25 MT.
Occurs in rock sequences mainly of two geological ages, namely Gondwana and tertiary deposits.
- About 80 percent of the coal deposits in India is of bituminous type and is of non-coking grade.
- Over 97 percent of coal reserves occur in the valleys of Damodar, Sone, Mahanadi and Godavari.
Gevra coal mine of Chhattisgarh became the largest coal mine last year.(Earlier Jharia was the largest coal field)