Coal Production and Self-Reliance: Government Initiatives
UPSC / SSC current affairs note · Economy
Why in news
The government is taking steps to boost domestic coal production and reduce import dependence. This is crucial for energy security and achieving Atmanirbhar Bharat in the coal sector.
Background
India has large coal reserves but has historically relied on imports to meet demand. The government has been reforming the coal sector since 2020 to increase production and attract private investment.
Key facts
Coal Ministry regularly reviews coal block development to accelerate production.
MMDR Amendment Act 2021 allows captive mine owners to sell up to 50% of annual mineral production in open market after meeting end-use plant needs.
Single portal for all clearances in coal sector to speed up operations.
Project Management Unit (PMU) established to guide coal block allocators in obtaining approvals.
Commercial coal mining auction started in 2020 on revenue-sharing basis.
50% discount on final bid for coal produced before scheduled date and for coal gasification/liquefaction.
Liberal terms for commercial mining: no end-use restriction, new companies allowed, low upfront amount, flexible efficiency parameters, 100% FDI, revenue sharing based on National Coal Index.
Timeline for fully explored blocks reduced from 51 to 40 months; for partially explored blocks from 66 to 52 months.
Regulatory reforms: abolished requirement of prospecting license for recognized agencies, removed need for opening permissions and government approval of geological reports; declared coking coal as critical mineral; introduced incentives for underground mining.
CIL adopting mass production technologies like continuous miners, longwall, highwall in underground mines; standardizing heavy earth moving machinery in opencast mines; deploying surface miners.
Prelims pointers
- MMDR Amendment Act 2021
- Commercial coal mining launched in 2020
- National Coal Index
- 100% FDI in coal mining
- CIL (Coal India Limited)
- SCCL (Singareni Collieries Company Limited)
- CBDPM (Coal Block Development and Production Agreement)
- Coking coal declared critical mineral
Mains angles
- Discuss the impact of coal sector reforms on energy security and self-reliance.
- Critically examine the role of commercial coal mining in reducing import dependence.
- Evaluate the effectiveness of regulatory reforms in boosting domestic coal production.