Launched auction of 41 coal blocks in June with annual production capacity of nearly one third of total national output in order boost local output
New Delhi, August 27: M. Nagaraju, Joint Secretary, Coal Ministry, in a seminar said that India has planned to reduce its thermal coal imports significantly in “the next few years”, so as to save foreign exchange and create jobs through the development of existing and new coal blocks.
Without giving more detail on the timeframe, Nagaraju said, “As per our assessment, we can actually substitute between 110-120MT of coal. We will not be able to do this year, but certainly we will do in the next few years”, adding that increasing local coal production would help to improve economies of the states, where most coal mines are located.
Coal is among the top five commodities imported by India, which is the world’s largest consumer, importer and producer of fuel after China. India had spent ₹1.58 trillion ($21.28 billion) on imports of 247 MT of coal, including 197 MT of thermal grade, in the fiscal year 2020.
With the world’s fourth largest coal reserves, Prime Minister Narendra Modi wants India to be a net coal exporter. India in June had launched an auction of 41 coal blocks with annual production capacity of nearly one third of total national output in order to boost local output, the blocks offered with generous commercial terms also aimed at attracting foreign investment to a sector dominated by state-run Coal India Ltd. India’s thermal coal demand this year has fallen because of the economic contraction triggered by lockdowns to slow the spread of the new coronavirus.
“Future of coal is not as bright as it used to be in the past but it is not as bleak as some people might say because coal continues to be an important player in the energy mix of the country for at least next 30 years”, Nagaraju said.
