New Delhi ,

Demand of coal is higher than the current level of domestic supply of coal in the country. The gap between demand and domestic supply of coal cannot be bridged completely as there is insufficient availability and reserve of prime coking coal in the country. Further, coal imported by power plants designed on imported coal and high grade coal required for blending purposes is also imported in the country as this cannot be fully substituted by domestic coal which has limited reserve of high grade coal. All India demand and domestic supply of coal during last five years is given below:-








Actual Demand (MT)







Domestic Supply (MT)







Import (MT)







 MT – Million Tonne


The focus of the Government is on increasing domestic production of coal through allocation of more coal blocks, pursuing with State Government for assistance in land acquisition and coordinated efforts with Railways for movement of coal. Looking forward to the future demand scenario and in order to reduce non-essential import in the country, a plan has been prepared by Coal India Limited to increase coal production to 1 BT by 2023-24.


Commercial mining, with a provision for 100% foreign direct investment, has been allowed by the Government.


An Inter-Ministerial Committee (IMC) was constituted in the Ministry of Coal on 29.05.2020 for the purpose of coal import substitution. The Representatives from Ministry of Power, Ministry of Railways, Ministry of Shipping, Ministry of Commerce, Ministry of Steel, Ministry of Micro, Small & Medium Enterprises (MSME), Department for Promotion of Industry & Internal Trade (DPIIT), Central Electricity Authority (CEA), Coal Companies and Ports are members of this IMC. On the directions of the IMC, an Import Data System has been developed by Ministry of Coal to enable the Ministry to track the imports of coal. Efforts are taken to ensure more domestic supplies of coal. To take the task of coal import substitution to the next level, Coal India Limited has been asked to plan zero coal Import Mission by 2023-24 for substitutable coal. Thus, the entire substitutable imported coal demand is planned to be met by the country and no import other than very essential should happen. Coal India Limited has been directed to prepare the action plan. Further, CIL introduced a new e-auction window ‘Special Spot e-auction Scheme, 2020 for Import Substitution (where only coal importers can participate) with liberal coal lifting period to promote coal import substitution. To encourage domestic coal production enhancement, captive mine lessees are allowed to sell coal or lignite up to 50 % of the total coal or lignite produced in a financial year after meeting requirement of linked EUP. Necessary amendment in MMDR Act 1957 has been carried out through Mines and Minerals (Development and Regulation) Amendment Act, 2021. Corresponding amendment in the MCR, 1960 has also been carried out through Mineral Concession (Amendment) Rules, 1960 and notified vide gazette notification G.S.R 717(E) on 01.10.2021. By inserting Rule 27A in the MCR, 1960, lessee of captive mine is allowed to sell coal or lignite up to such percent (50%) of the total coal or lignite produced in a financial year after meeting the requirement of the end use plant linked with the mine. This provision is not applicable to a power project awarded on the basis of competitive bid for tariff including Ultra Mega Power Projects.


In order to enhance coal production, Coal India Limited (CIL) has taken the following steps:


  • Implementing on-going projects in time bound manner to achieve targeted production as per schedule.
  • 15 Greenfield Projects identified with a Capacity of about 160 Mty to be operated by Mine Developer cum Operator mode.
  • Manual loading method eliminated in all underground mines of CIL (except one mine of CCL) by introducing Side Discharge Loader (SDL)/ Load Haul Dump (LHD) loading in conjunction with belt conveyors.
  • Introduction of Surface Miners in opencast mines to improve operational efficiency and cater to environmental needs.
  • Introduction of Mass Production Technology in underground coal mines.


This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi.


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