Ministry of Coal releases “Strategy Paper on Coal Import Substitution”

Posted 08 Mar 2024

Updated 25 Mar 2024

2 min read

This has been prepared by the Inter-Ministerial Committee, constituted by the Ministry for making recommendations on import substitution of coal by 2030.

Key observations:
- Despite having rich coal deposits (around 378.20 billion tonnes), India is second largest importer of coal, importing 237 MT in FY2023 costing ₹3.83 Lakh Crores.
  - Coal is majorly consumed for electricity generation in India (about 64%), followed by steel and cement sectors.
- Energy consumption matrix: Coal dominates and accounts for 56% of primary energy consumption.
  - Accounts for 76% of electricity generation and will remain major fuel with 55% share by FY2030.

Factors behind Coal import:
- Smaller and lower quality reserves of coking coal.
- Less availability of high gross calorific value coal.
- Challenges in developing new coal mines related to land acquisition, delay in obtaining statutory clearance etc.
- Logistics constraints for evacuation.

Recommendations:
- Implementation of Coal Logistic Plan as high priority.
- Utilization of raw coking coal production and adoption of Stamp Charging battery technology in steel sector.
- Enhancing Washing Capacity in India to 140 MT by 2030.
- Enhancing coal gasification based Direct Reduced Iron for steel making.
- Rationalization of GST Compensation Cess on coal.

Vision 2030: Increase in Coal and lignite production.
Auction and operationalization of more commercial/captive coal blocks.
Coal Logistic Policy and coal evacuation plan for efficient evacuation of coal.
Mission Coking coal for production and utilization of domestic coking coal.
Technology Upgradation with coal sector digitalization, smart dashboard, remote sensing application etc.

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