New Delhi: Domestic coal production witnessed a substantial 9.2% year-on-year increase until July 2023, as reported by Union Minister of Coal and Mines, Pralhad Joshi, on Wednesday. In a written response to the Lok Sabha, the minister detailed the government's endeavors to enhance native coal production while curbing non-essential imports.

Under the current import policy, coal remains under the Open General License (OGL), allowing consumers to import coal from their preferred sources based on contractual agreements, subject to applicable duties. The majority of the country's coal demand is met through domestic production. The government's primary focus is on bolstering domestic coal output and reducing non-essential coal imports, the minister emphasized.

It's projected that India's coal production will reach a record 1 billion tonnes in the fiscal year 2023-24. The Central Electricity Authority (CEA) has indicated an uptick in domestic coal supply to the power sector. Receipts of domestic coal by the sector increased from 569.5 million tonnes in 2019-20 to 731.7 million tonnes in the fiscal year 2022-23, demonstrating a Compound Annual Growth Rate (CAGR) of 8.6%. Notably, coal imports by the power sector declined during April-June 2023, dropping from 16.36 million tonnes in the corresponding period the previous year to 14.21 million tonnes.

According to the Daily Coal Report (DCR) from the CEA, the thermal power plants currently have 32.09 million tonnes of coal stock available as of August 5, which is adequate for approximately 16 days of consumption.

Responding to another question in the Lok Sabha, Minister Joshi revealed that total coal consumption has surged from 130.73 million tonnes in the year 1983-84 to 1115.02 million tonnes (provisional) in 2022-23, marking a remarkable 753% growth.

To address the persistent challenge of coal supply to power plants, the government has been proactive. An inter-ministerial sub-group, comprising representatives from vital ministries including power, coal, railways, Central Electricity Authority (CEA), Coal India Ltd. (CIL), and Singareni Collieries Company Ltd. (SCCL), has been instrumental in formulating strategies. These strategies aim to boost coal supply to thermal power plants and ensure preparedness for potential contingencies in the power sector, such as critical coal stock situations.

Additionally, an inter-ministerial committee (IMC) has been established with representation from all stakeholders to oversee the continuous enhancement of coal supply and power generation capacity.

In alignment with the escalating demand for coal and lignite, the exploration of new mining areas remains an ongoing endeavor. A sub-scheme named "Promotional (Regional) exploration," operating within the framework of the coal ministry's Central Sector Scheme, is focused on discovering untapped coal and lignite reserves in previously unexplored regions. The Geological Survey of India (GSI) contributes to the nation's mineral resource understanding through comprehensive investigations into various minerals, including coal.

Joshi also noted that coal/lignite Public Sector Undertakings (PSUs) have successfully completed the construction of fifteen eco-parks in five years, showcasing their commitment to environmental sustainability. An additional 19 such parks are scheduled to be established in various states.