Article Title: Coal Production in the Country Crosses One Billion Tonnes Mark in a financial year
23-03-2025
Economy Current Affairs Analysis
Context
Apart from China, India is the only country to cross the 1 billion tonnes mark in annual coal output.
Significance of this Milestone
Fostering Energy Security: Coal contributes approximately 55% of India's energy mix, and around 74% in electricity generation.
Powering economy: Increasing production will substitute imports, contributing in foreign exchange savings.
Key Reforms
Coal Mines (Special Provisions) CMSP Act- 2015 paved way for commercial mining of the coal mines by private entities.
Mines and Minerals (Development and Regulation) Amendment Act, 2021, allowed Composite Prospecting Licence-cum Mining Lease (PL-cum-ML) specifically for coal.
Integrated Coal Logistic Policy and Plan, 2024
PM Gati Shati-National Master Plan in coal sector
Mission Coking Coal
National Coal Index (NCI), etc.
FDI Policy: Allowing 100% FDI in coal mining under the automatic route has attracted global expertise and advanced technologies.
Existing Challenges/Concern for Coal Sector
Global Pushback against Coal: Developed countries are pushing for phasedown of coal production.
Import dependence: India imported about 260 million tonnes of coal in FY 2023-24, dominated by non-coking coal (~77% of total imports).
Other issues: Land acquisition, environmental degradation due to open cast mining, etc.
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