COMMODITY
India witnesses 5% fall in coal import during H1FY24
Dec-06-2023

India has reported 5% decline in coal import to 125.21 million tonnes (MT) in H1FY24 (April-September period of 2023-24). The Government does not depend on private companies for adequate supply of high-end coal imported from abroad. Therefore, as per current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty.

The government has taken several measures to substitute coal imports. There is a thrust on enhancement of domestic coal production which is key to achieve self-reliance and reduce dependence on imported coal. In the year 2022-23, coal production increased by 14.77% over the previous year. During the current year till November, 2023, domestic coal production has increased over 13% compared to the same period of last year.

Major initiatives have been taken to increase domestic production of coal include Single Window Clearance, amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50% of their annual production after meeting the requirement of the end use plant, production through Mine Developer and Operator (MDO) model, increasing use of modern technologies such as surface miner, continuous miner etc., taking up new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs. 100% Foreign Direct Investment is allowed for commercial mining. All these initiatives resulted in production enhancement and import reduction.

As of now, most of the requirement of coal in the country is met through domestic production. However, some high-grade coal like coking coal, anthracite and low ash thermal coal, used by imported coal based (ICB) power plants, are essential to import as their domestic production is non-available. The focus of the Government is on increasing the domestic production of coal and to eliminate non-essential import of coal in the country.


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