MP Brijmohan Agrawal raises questions on increasing coal production and reducing imports in Lok Sabha

Raipur: The Ministry of Coal is actively working to increase domestic coal production and reduce dependence on imports, stated Coal and Mines Minister G. Kishan Reddy in response to a question by Raipur MP Brijmohan Agrawal in the Lok Sabha on Wednesday. The government has implemented several measures to replace coal imports.

With the amendment to the Non-Regulated Sector (NRS) linkage auction policy initiated in 2020, the period for coking coal linkage in the NRS linkage auction has been extended to up to 30 years. Under the revised provisions of the Shakti policy, coal offered to power plants for the short term and the extension of the coking coal linkage period up to 30 years in the NRS linkage auction is expected to have a positive impact on coal import substitution.
In 2022, the government decided that coal would be made available by coal companies to meet the full PPA requirement of all existing linkage holders in the power sector. This decision will reduce dependence on imports. An inter-ministerial committee (IMC) has been constituted in the Ministry of Coal to replace coal imports. This IMC includes representatives from the Ministries of Power, Railways, Shipping, Commerce, Steel, Mines, Micro, Small and Medium Enterprises, Department for Promotion of Industry and Internal Trade, Central Electricity Authority, coal companies, and ports. Following the IMC’s directives, the Ministry of Coal has developed an import data system to track coal imports. Efforts are made to ensure more domestic coal supply. Additionally, the Mineral Concession Rules, 1960 have been amended to allow the sale of coal or lignite by captive lessees up to 50% of the total coal or lignite produced in a financial year after meeting the requirements of the end-use plant linked to the mine. This will encourage captive lessees to increase production from captive mines.
Furthermore, the Ministry of Coal will regularly review the development of coal blocks to accelerate their progress. Coal companies have also taken several steps to increase domestic coal production. Coal India Ltd (CIL) has adopted comprehensive production technologies, primarily continuous miners, in underground (UG) mines wherever feasible to increase coal production. CIL has also planned highwall mines considering the availability of abandoned/closed mines. CIL is also planning large-capacity UG mines wherever possible. CIL already employs state-of-the-art technology in high-capacity excavators, dumpers, and surface miners in its opencast mines.
Singareni Collieries Company Ltd (SCCL) is in regular contact to support new projects and operate existing projects. SCCL has initiated actions to develop infrastructure like CHP, crushers, mobile crushers, and pre-weigh bins for coal evacuation. The Ministry of Coal has increased the Annual Contract Quantity (ACQ) to 100% of the regulatory requirement in some cases. Previously, ACQ was either reduced to 90% of the regulatory requirement (non-coastal) or reduced to 70% of the regulatory requirement (coastal power plants). The increase in ACQ will result in more domestic coal supply, reducing reliance on imports.