Demand for Imported Coal in India

Under the present import policy of the Government, Coal is placed under Open General Licence (OGL) and can be freely imported by anyone in the country on payment of applicable import duty.  During the process of formulation of Annual Plan, Ministry of Coal/Planning Commission assesses the overall demand of the country and finalises the supply plan from indigenous sources, the details of which are as under:

(in Million Tonnes)
Particulars 2008-09 2009-10 2010-11 2011-12
All India Coal Demand 550.00 597.98 656.31 696.03
Supply Plan to meet Coal Demand (in Million Tonnes)
CIL 405.00 437.40 460.50 452.00
SCCL 41.50 45.00 47.05 51.00
Other Indigenous Sources 50.79 52.83 65.87 56.00
Gap to be met through Import 52.71 62.75 82.89 137.03
Total 550.00 597.98 656.31 696.03

The gap between indigenous availability of coal and  estimated coal  demand to be met through imported coal is increasing over the years from 52.71 MT in 2008-09  to 137.03 MT in 2011-12.

While the details of country-wise imports by various consumers are not available, as per available information, the coal imports during last three  years were as under:

(Quantity in Million Tonnes & Value in Million Rs.)
Year Coking Coal Non-Coking Coal Total Coal
Quantity Value Quantity Value Quantity Value
(1) (2) (3) (4) (5) (6) (7)
2008-09 21.080 226140 37.923 187268 59.003 413408
2009-10 24.690 201311 48.565 190489 73.255 391800
2010-11 (Upto Nov’10) (Provisional) 14.658 157161 33.700 140756 48.358 297919

(d) to (e):  The following steps have been taken/are being taken to improve the production of coal  indigenously for meeting  the demand:-

(i)         Coal India Limited has been asked to increase production from existing mines and expedite production from new projects.

(ii)        195 coal blocks have been allotted to State and Central Government companies and also to private companies for captive mining.

(iii)       Exploration for new Coal blocks has been expedited.

(iv)      Procedure for project approvals has been streamlined.

(v)        Mechanization/modernization of existing mines.

(vi)       Improvement in equipment utilisation.

(vii)    Increasing productivity in underground and opencast mines

(x)      Exploration capacity of CMPDIL being increased.

It has been estimated by the Working Group for 12th Five Year Plan on Coal and Lignite in their draft report that in view of the increasing coal demand in the country,  the need for import of coal would continue during  12th Plan.

This was informed by Shri  Pratik Prakashbapu Patil  , Minister of state  in the Ministry of Coal  while replying a written question in Rajya Sabha today.

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