New Delhi [India], July 29 (ANI): In a significant shift in the country’s energy landscape, the Ministry of Coal is spearheading a transformative initiative to reduce coal imports and promote coal exports aimed at enhancing domestic coal production, bolstering energy security, and supporting the growth of the coal sector.
According to a press release by the Ministry of Coal, India’s coal production witnessed a remarkable increase of 11.65 per cent in the fiscal year 2023-24, reflecting the government’s commitment to achieving self-reliance.
The production target for 2024-25 has been ambitiously set at 1,080 million tonnes, further solidifying India’s position as a leading coal producer.
To streamline the reduction of coal imports, an inter-ministerial committee has been established. This committee is tasked with facilitating discussions and coordinating efforts among various ministries to identify opportunities for import substitution.
While acknowledging the need for certain high-grade coal imports, the primary focus remains on minimising non-essential imports and promoting the utilisation of domestically produced coal, read the press release.
In addition to reducing imports, the government is actively promoting coal exports to capitalise on the growing global demand for fossil fuels.
This initiative aims to position India as a key player in the international coal market, thereby generating revenue and creating employment opportunities within the sector.
Reducing coal imports and promoting exports are crucial steps in ensuring India’s energy security. By relying more on domestically produced coal, India can reduce its dependence on foreign sources and shield itself from global price fluctuations.
This strategy is expected to have a positive impact on the Indian economy by contributing to economic growth, creating jobs, and generating revenue for the government. Moreover, reducing reliance on imports will help conserve foreign exchange reserves.
A study conducted by IIM Ahmedabad highlights the potential for exporting 15 million tonnes of coal to neighboring countries- 2 million tonnes in Nepal, 3 million tonnes in Myanmar, 8 million tonnes in Bangladesh and 2 million tonnes in other countries.
Additionally, the Maitree Super Thermal Power Project (MSTPP) (2×660 MW), constructed by the Bangladesh India Friendship Power Company Ltd (BIFPCL), a 50:50 joint venture between NTPC and the Bangladesh Power Development Board (BPDB), requires 5 million tonnes of coal annually as per international pricing policies. This highlights a significant export opportunity for India, read the press release.
By enhancing domestic production, facilitating import substitution, and promoting exports, India aims to achieve self-reliance, strengthen energy security, and support the growth of the coal sector.
These efforts are expected to have far-reaching implications for the Indian economy and its position in the global energy landscape.
With the ambitious targets and strategic initiatives in place, India is poised to reinforce its energy security, reduce dependency on imports, and emerge as a prominent player in the global coal market. (ANI)
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