Parliament committee suggests Centre to reduce coal import, increase local production

A Parliamentary Standing Committee has suggested the government to reduce the import of coal and increase the domestic production to meet the demand.

The Standing Committee on Energy in its report tabled in Parliament also expressed disappointment over the slow pace of work in starting the production of newly allocated coal blocks to state run thermal power plants.

“Thanks to efforts made by the Ministry of Power and the Ministry of Coal, the import of coal for blending was reduced by 56% in 2020-21. However, the year 2021 has been unprecedented as the international prices of imported coal went up which affected the import of coal by imported coal-based power plants, thus leading to demand for more domestic coal and consequent reduction in domestic coal stocks at power plants," the report said.

“Despite having mammoth coal reserves in the country, we have been importing a substantial amount of coal. The share of imported coal, in some years, has been as high as 16-17 % of the total coal receipt. The reason adduced by the Ministry for import of coal is that imported coal is of superior quality, some plants are designed for use of imported coal while some others require it for blending purpose, etc. The Committee are of the considered view that import of coal should be done away with in a phased manner, as we have more than enough coal reserves to fully cater to meet our demand, the panel said.

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The quality of indigenous coal can be enhanced to a great extent and the design of boilers of power plants can be modified to enable them to run on domestic coal, the panel headed by Lok Sabha member Rajiv Ranjan Singh.

There were a total of 64 coal blocks allotted to the power sector and in which 16 were allotted to central public sector units. Out of 16 blocks, 5 have reached production. Delay in reaching production stage of mines was due to issues pending with the State Governments in respect of forest clearance, land acquisition, grant of mining lease.

Expressing disappointment over tardy progress in development of coal blocks, the Committee said matters should be taken up at state governments to resolve the issues so that excavation work can start without any further delay.