- 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.
- 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.
- 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
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