This strategic move aims to enhance domestic coal production, strengthen energy security, and support the growth of the coal sector.
India’s coal production witnessed a remarkable increase of 11.65% in the year 2023-24, demonstrating the government’s commitment to self-reliance. The target for the year 2024-25 has been set at an ambitious 1,080Million Tonnes, further solidifying India’s position as a major coal producer.
To streamline the process of reducing coal imports, an Inter-Ministerial Committee was formed and the committee will facilitate discussions and coordinate efforts among various ministries to identify opportunities for import substitution. While acknowledging the need for some high-grade coal imports, the focus remains on minimizing non-essential imports and promoting the use of domestically produced coal.
In addition to reducing imports, the government is actively promoting coal exports to capitalize on the growing global demand for the fossil fuel. This initiative aims to position India as a key player in the international coal market, generating revenue and creating employment opportunities in the sector.
The reduction in coal imports and the promotion of exports are crucial steps in ensuring India’s energy security. By relying more on domestically produced coal, the country can reduce its dependence on foreign sources and insulate itself from global price fluctuations.
The transformation of the coal sector is expected to have a positive impact on the Indian economy. The increased production and export of coal will contribute to economic growth, create jobs, and generate revenue for the government. Additionally, the reduced reliance on imports will help conserve foreign exchange reserves.
