Why is it in the news?
- India’s coal and lignite production has reached an all-time high of over 1 billion tonnes for the fiscal year 2023-24, marking a growth of more than 70% over the last decade due to favourable government support.
- The achievement holds significant implications for India’s energy security, reducing dependence on imports, saving foreign exchange reserves, and achieving the target to replace coal imports for power generation by 2025-26.
More about the news
- India possesses the 5th largest geological reserves of coal globally and is the 2nd largest consumer of coal worldwide.
- Coal India Limited (CIL) is the largest producer, accounting for over 70% of coal production in India.
- Import of coal remains significant, with India importing 217.75 million tonnes in FY 2023-24, primarily non-coking coal making up approximately 77% of total imports.
- Challenges faced by the coal sector include unseasonal rainfall in coal-bearing areas, non-payment of dues by power sector consumers, labour disputes, land acquisition, environmental concerns, and issues with coal quality and mining techniques.
Key reforms in the coal sector
| Reforms in the Coal Sector | Description |
| Coal Mines Special Provisions Act, 2015 | Aimed at ensuring transparent auction processes for coal mines. |
| Mines and Minerals (Development and Regulation) Amendment Act, 2021 | Allows for composite Prospecting Licence-cum-Mining Lease (PL-cum-ML), simplifying the process for acquiring licenses and leases. |
| Cessation of the captive mining regime | Facilitates commercial mining and sale of excess production, moving away from the previous captive mining system. |
| Single window clearances | Introduced to streamline and expedite the operationalization of coal mines by addressing administrative hurdles. |
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