Govt says 132 commercial coal blocks allocated since 2020 to boost domestic production, cut imports
New Delhi, July 20
The government on Monday said it has allocated 132 commercial coal blocks since the launch of commercial coal mine auctions in June 2020 as part of its strategy to raise domestic coal production and reduce dependence on imports.
In a written reply in the Rajya Sabha, Minister of State for Coal and Mines Satish Chandra Dubey said, "Following the launch of commercial coal mine auctions in June 2020, a total of 132 coal blocks have been allocated under the commercial coal mining."
The minister added that "out of these 23 coal blocks have obtained Mine Opening Permission (MOP) and 15 coal blocks are under coal production," while "the remaining 109 allocated coal blocks are progressing within the scheduled development timelines prescribed under the Coal Mine Development and Production Agreement (CMDPA)."
The written reply said the government has introduced a series of policy reforms to speed up coal block development and encourage higher domestic production. These include commercial coal mining through a revenue-sharing model, a Single Window Clearance portal, a Project Management Unit to assist allottees in obtaining approvals, and shorter timelines for operationalising coal mines.
The government said it has also amended the Mines and Minerals (Development and Regulation) Act, 2021, allowing captive mine owners to sell up to 50 per cent of their annual coal production in the open market after meeting end-use requirements.
According to the reply, "Most of the requirement of coal in the country is met through indigenous production/supply. The focus of the Government is on increasing the domestic production of coal and to eliminate non-essential import of coal in the country."
To reduce import dependence, the government highlighted measures such as increasing the Annual Contracted Quantity (ACQ) of domestic coal for power plants, extending coking coal linkage tenures to up to 30 years, launching the Coking Coal Mission, and allowing imported coal-based power plants to procure domestic coal under the Revised SHAKTI Policy, 2025.
The reply further said, "Efforts are being made on a continuous basis to ensure more domestic supplies of coal. Thus, the entire substitutable imported coal is expected to be met by the country and no import, other than the very essential should happen."
The government also outlined steps being taken to improve environmental sustainability in coal mining, including plantation and bio-reclamation, mine water utilisation, eco-park development, mechanised coal extraction and transportation, dust mitigation measures, and scientific mine closure.
The written reply added that land compensation and rehabilitation benefits for project-affected families are being provided under the relevant provisions of the RFCTLARR Act, 2013, while transparency in rehabilitation and resettlement activities is ensured through committees headed by district authorities.
— ANI
Reader Comments
Finally some serious push to reduce coal imports! Our foreign exchange keeps draining for energy. But I hope environmental clearance and rehabilitation of affected families is done properly - not just in written replies. The plantations and eco-parks sound good but need implementation.
क्या बात है! Domestic coal production should be top priority. But 50% open market sale for captive mines? That might lead to profiteering. Also, coal is still dirty energy - we need faster transition to renewables while using this as bridge fuel. Balanced approach needed.
The Coking Coal Mission and extended linkages for steel sector are critical. Our steel plants import coking coal worth crores every year. If we can substitute even 30-40%, it's huge. But let's see if coal quality matches import grade - Indian coal has high ash content. 🤔
As someone from a mining district, I've seen displacement and pollution first-hand. Hope the rehabilitation benefits don't just remain on paper. The RFCTLARR Act, 2013 provides good framework but implementation is weak. Also, mechanised extraction might reduce jobs - need proper skill training for locals.
Interesting to see India's pragmatic approach - using coal as bridge fuel while building renewables. The revenue-sharing model for commercial mining is innovative. But global investors might be wary of Indian coal's quality issues and infrastructure bottlenecks. Still, 132 blocks is serious commitment.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.