Ministry of Coal releases “Strategy Paper on Coal Import Substitution” | Current Affairs | Vision IAS
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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.

 

Government measures for coal import substitution

  • 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.
  • Tags :
  • coal import
  • import substitution
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