The government is prioritising the implementation of policies aimed at providing financial support for coal gasification projects, boosting production, and promoting underground mining activities to meet the escalating electricity demand in the country. Additionally, there is a focus on bringing more captive and commercial coal mines into operation, enhancing the quality of dry fuel, and improving transportation infrastructure for environmental sustainability. The digitisation of mine records is also in the pipeline.
Coal Secretary Amrit Lal Meena announced that two policies have been notified regarding coal gasification, with plans to offer financial support and tax incentives for such projects. The ministry of coal has set a target to gasify 100 million tons of coal by the fiscal year 2030, aligning with the government’s energy transition plans. Coal gasification is expected to significantly reduce imports and carbon emissions, fostering sustainable practices.
To address environmental concerns related to coal gasification, the government has mandated green clearance, requiring project proponents to conduct environmental impact assessment studies and formulate an environment management plan. The plans will undergo thorough examination by an expert committee before any activities related to the establishment of a coal gasification plant can commence.
A new policy has been formulated, providing a fifty percent rebate in revenue share for future commercial coal block auctions specifically for coal used in gasification. This rebate is contingent on the condition that the quantity used for gasification constitutes at least ten percent of the total production. A separate auction window under the non-regulated sector has been established to make coal available for new coal gasification plants.
The government aims to scale up coal production from underground mines to 100 million tons by 2030, employing mass production technology. India’s coal sector, ranking as the second largest globally, witnessed a 14.8 percent increase in production to 893 million tons in the 2022–2023 financial year. India contributes over ten percent to global coal production, standing second only to China.
As reported by ENERGYWATCH, in the pursuit of self-reliance in coal production and the reduction of imports, the government is striving to increase domestic coal production to over 1 billion tons in the 2023–2024 period, with a further target of reaching 1.5 billion tons by 2029–2030.
