Aatmanirbhar Bharat in the Coal Sector
Context
The Indian government is focused on achieving self-reliance (Aatmanirbhar Bharat) in coal production to meet the nation’s energy needs and reduce dependence on coal imports.
Relevance:
GS-02 (Government policies and interventions)
About Aatmanirbhar Bharat in Coal
- Regular Reviews and Legislative Support:
- The Ministry of Coal conducts regular reviews to expedite the development of coal blocks.
- The Mines and Minerals (Development and Regulation) Amendment Act, 2021 [MMDR Act] allows captive mine owners to sell up to 50% of their annual mineral production in the open market.
- Streamlining Processes:
- A Single Window Clearance portal has been established to speed up coal mine operationalization.
- A Project Monitoring Unit supports coal block allottees in obtaining necessary approvals and clearances.
- Commercial Mining:
- The commercial mining auction on a revenue-sharing basis was launched in 2020, providing incentives for early production and coal gasification or liquefaction.
- Terms for commercial coal mining have been liberalized, including no restrictions on coal utilization, reduced upfront amounts, and a transparent bidding process.
- Coking Coal Mission:
- Initiatives under the Coking Coal Mission aim to enhance coking coal supply to the steel sector, reducing imports.
- Technological and Operational Enhancements:
- The adoption of mass production technologies, high-capacity equipment, and infrastructure development for coal evacuation are being implemented by coal companies like Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL).
Significance
- Increased Domestic Production: India’s domestic coal production has seen substantial growth, with production increasing from 565.765 MT in FY 2013-14 to a provisional 997.828 MT in FY 2023-24.
- Reduction in Coal Imports: Efforts to enhance domestic coal production and streamline mining operations aim to eliminate non-essential coal imports, contributing to energy security.
- Economic Growth: The coal sector is a critical component of India’s economy, contributing over 2% to the total GDP and supporting various industries through reliable coal supply.
- Support for Steel Sector: Enhanced coking coal production and long-term linkage assurances for the steel sector will reduce dependency on imported coking coal and support domestic steel manufacturing.
Way Forward
- Ongoing legislative reforms and policy initiatives will further strengthen coal sector operations and encourage private sector participation.
- Emphasis on adopting advanced mining technologies and state-of-the-art equipment will improve operational efficiency and safety.
- Implementing eco-friendly measures such as coal washeries, bio-reclamation, and efficient water usage will ensure sustainable mining practices.
- Inter-ministerial collaboration and regular monitoring will help address challenges and ensure the smooth implementation of coal production and distribution initiatives.
- Setting ambitious targets, such as opening 100 new mines with a production capacity of 500 MTPA by FY 2029-30, will drive growth and self-reliance in the coal sector.
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