How does India plan to reduce coal imports?


Coal imports in FY 2020 amounted to 247mt (Rs 5.8 lakh cr). Thermal component was 197mt. Govt plans to cut imports by half (~110 mt) over 5-7 years by operationalising "commericial mining" reforms set out earlier. Commercial mining is expected to ramp up coal production, increase availability of coal in some areas and reduce costs. Exports would be encouraged while coal remains a valuable commodity.

41 coal blocks were put up for auction in June 2020, with annual capacity of 1/3rd of total domestic production!! Generous commercial terms were designed to attract foreign investment (eg. 100% FDI) and the latest mining technologies. These would help to extract coal from difficult coal blocks. Central Indian states stand to benefit.