Context:
India crosses 1 billion tonnes coal production mark in FY25.
Status of the Indian Coal Sector:
- India ranks as the 2nd largest consumer of coal globally.
- India is also the 2nd largest producer of coal.
- It holds the position of the 5th largest reserve of geological coal deposits worldwide.
- India relies on coal for approximately 55% of its energy mix, and around 74% of the country’s electricity is generated by coal-based power plants.
- Major coal producing States – Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, Telangana, Maharashtra & West Bengal.
- 2nd largest importer of coal
- High import dependence is mainly because there is less availability of high gross calorific value (GCV) coal which has low ash and sulphur content.
- Major source countries – Indonesia, Australia, Russia, South Africa, US, Singapore, and Mozambique.
Key Reforms and Initiatives:
- Coal Mines (Special Provisions) Act, 2015 – Enabled private entities to engage in commercial mining of coal.
- Mines and Minerals (Development and Regulation) Amendment Act, 2021 – Introduced Composite Prospecting Licence-cum-Mining Lease (PL-cum-ML), specifically tailored for coal.
- Integrated Coal Logistic Policy and Plan, 2024 – Focuses on improving coal logistics and efficiency.
- PM Gati Shakti – National Master Plan – Enhances infrastructure and logistical coordination for the coal sector.
- Other initiatives include Mission Coking Coal and the establishment of the National Coal Index (NCI).
- Foreign Direct Investment (FDI) Policy – The government permits 100% FDI in coal mining through the automatic route, encouraging global expertise and advanced technologies.
Source: ET
Previous Year Question
In India, what is the role of the Coal Controller’s Organization (CCO)?
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection to the Government’s notification relating to acquisition of coal – bearing areas. 4. It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below:
[UPSC Civil Service Exam – 2022 Prelims]
(a) 1, 2 and 3
(b) 3 and 4 only
(c) 1 and 2 only
(d) 1, 2 and 4
Answer: (a)
Explanation:
Statement 4 is not correct: Ensuring that coal mining companies deliver the coal to end users in the prescribed time is not the function of the Coal Controller’s Organization (CCO)