India aims to phase out coal imports by 2025, focuses on energy securityIndia aims to phase out coal imports by 2025, focuses on energy securityIndia aims to phase out coal imports by 2025, focuses on energy security

• Published 8 months ago
• By SuperAdmin

Launching the 9th round of commercial coal mine auction, the minister emphasized the critical role of coal in India’s energy security, stating the country will continue to depend on coal for the next 30-40 years.

New Delhi: In a significant move towards energy self-reliance, Union minister for coal and mines Prahlad Joshi said that India aims to reduce its coal import dependency drastically, targeting to bring it down to 2% in the next financial year and completely phase out imports by 2025-26. Launching the 9th round of commercial coal mine auction, the minister emphasized the critical role of coal in India’s energy security, stating the country will continue to depend on coal for the next 30-40 years. He highlighted the government’s efforts in reducing coal imports, noting a decrease from 26% in 2019-20 to 21% in the current fiscal.

“The demand for power is rising, and to meet this growing need, an increase in coal production is essential,” Joshi said, addressing the need for enhanced coal output to keep pace with the country’s escalating power demands.

Coal Secretary Amrit Lal Meena said that measures are being taken to boost the washing capacity for both coking and domestic coal to further reduce import dependency.

A total of 31 coal mines, including 26 under the ninth round and 5 under the second attempt of the seventh round, are offered in the ninth round of commercial coal mine auctions. The mines being auctioned are spread across coal and lignite-bearing states of Jharkhand, Chhattisgarh, Madhya Pradesh, and Telangana.

“Five additional coal mines are also being offered under the second attempt of round 7 of commercial coal that includes four CMSP Act coal mines and one under the MMDR Act,” the government stated.

These efforts are part of India’s broader plan to increase its coal-fired power capacity to about 80 GW by 2030, a significant jump from the previously planned 51 GW. Further facilitating participation in coal block auctions, the government has removed eligibility criteria and any restrictions on coal sale or utilization.

A Single Window Clearance System (SWCS) portal is also being introduced to streamline the process of obtaining various operational clearances for coal mines.

India’s power demand is projected to surge to 335 GW by 2030 from the current 240 GW. With coal being a key player in India’s energy mix, accounting for 72% of the country’s electricity generation, these steps are crucial for the nation’s energy strategy. Moreover, the auctioned mines are expected to generate substantial revenue and employment.

“The operationalization of these mines is estimated to bring in an annual revenue of ₹33,343 crore and generate employment for around three lakh individuals, involving an investment of more than ₹30,000 crore,” the government said.