Ministry of Coal
azadi ka amrit mahotsav

Steps Taken by the Government to Increase the Domestic Production of Coal

Posted On: 07 FEB 2024 4:00PM by PIB Delhi

Production of coal in the country during the last five years and the current year is as under:

[Figures in Million Tonnes]

Year

Production of Coal

2018-19

728.72

2019-20

730.87

2020-21

716.08

2021-22

778.21

2022-23

893.19

2023-24 (upto January, 2024)

784.10*

* Provisional

Government is planning to increase domestic coal production. The following steps have been taken by the Government to increase the domestic production of coal:

  1. Regular reviews by Ministry of Coal to expedite the development of coal blocks.
  2. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 for enabling captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government on payment of such additional amount.
  3. Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines.
  4. Project Monitoring Unit for hand-holding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines.
  1. Auction of commercial mining on revenue sharing basis launched in 2020. Under commercial mining scheme, rebate of 50 % on final offer would be allowed for the quantity of coal produced earlier than scheduled date of production. Also, incentives on coal gasification or liquefaction (rebate of 50 % on final offer) have been granted.
  2. Terms and conditions of commercial coal mining are very liberal with no restriction on utilization of coal, allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against monthly payment, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% Foreign Direct Investment (FDI) through automatic route and revenue sharing model based on the National Coal Index.

In addition to above, coal companies have also taken following steps to increase the domestic coal production.

  1. Coal India Limited (CIL) has identified and initiated actions for fulfilling all the resources required like Environment Clearance / Forest Clearance, land acquisition, evacuation infrastructures such as mechanized loading through Coal Handling Plant (CHP) / SILO, Rail Projects etc. CIL is in constant endeavour to enhance its coal production through expansion of mines (brownfield projects), opening of new mines (greenfield projects), mechanization and modernization of its mines, both Underground (UG) & Opencast (OC). In its UG mines, CIL is adopting Mass Production Technologies (MPT), mainly with Continuous Miners (CMs), wherever feasible. CIL has also planned Highwalls (HW) mines. In its OC mines, CIL already has State-of-the- Art technology in its high capacity Excavators, Dumpers and Surface Miners.
  1. Regular liaison is being undertaken by Singareni Collieries Company Limited (SCCL) for grounding of new projects and operation of existing projects. SCCL has initiated action for developing infrastructure for evacuation of coal like CHPs, Crushers, Mobile Crushers, Pre-weigh-bins etc.

This information was given by Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Lok Sabha today.

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BY /ST



(Release ID: 2003502)


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