The government has initiated several steps to ramp up domestic coal production in order to achieve self-reliance to meet the demand from all sectors.
Some of the major initiatives undertaken in this direction include Single Window Clearance, amendment of the Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50 per cent of their annual production after meeting the requirement of the end use plants, production through MDO mode, increasing use of mass production technologies, new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs. 100% Foreign Direct Investment has also been allowed for commercial mining.
The domestic coal production has increased by 8.67 per cent in 2021-22 over the previous year. In the current financial year till February 2023, the domestic coal production has increased by over 15 per cent compared to the same period of last year.
Most of the requirement for coal in the country is met through indigenous production/supply. ”The focus of the government is on increasing the domestic production of Coal and to eliminate non-essential import of coal in the country,” Union Minister of Coal Pralhad Joshi said in a written reply in Rajya Sabha today.
An Inter-Ministerial Committee (IMC) has also been constituted for the purpose of coal import substitution comprising representatives from different ministries. This committee provides a platform for discussions on a larger forum with the administrative ministries so as to guide them to encourage the coal consumers of their respective sectors to eliminate imports of coal.