In a parallel effort to strengthen energy security and reduce import dependence, the government is promoting coal gasification as a key component of India’s self-reliance strategy. The initiative aims to produce syngas domestically for use in sectors such as fertilizers, steel and energy, thereby reducing reliance on imported petroleum products and saving foreign exchange. To boost investment in the sector, the Centre has announced incentives worth Rs 46,000 crore, while states including Uttar Pradesh, Maharashtra and Odisha have introduced supportive policies. The Fertilizer Ministry is also working on a policy framework to encourage urea production through coal gasification technology. The government has further assured that adequate coal reserves are available, with an estimated 81-day stock for the power sector, ensuring uninterrupted fuel supply to thermal power plants.

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CGIL, a joint venture of CIL & GAIL, is setting up a Coal Gasification Project in West Bengal to produce Synthetic Natural Gas (SNG). The Ministry is extending financial assistance of Rs 1,350 crore under Category I of the approved Incentive Scheme for Coal Gasification.

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During a program organized in Delhi, NCL’s General Manager of Dudhichua Area, Shri Vinod Kumar Singh was honored for his unwavering dedication to work, successful and efficient leadership and strong teamwork in mine operations and coal production in the financial year 2024-25. Heavy monsoon and adverse conditions badly affected the mine operations in the month of August, but due to the efforts of Mr. Singh, the production of the project reached a stable figure of 90 thousand tonnes per day in a short time, due to which the Dudhichua Project and NCL have got unexpected success in production as per the target of FY 2024-25.

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Among these projects, the government has recently approved two significant rail projects in Odisha. The Sardega-Bhalumuda double line will facilitate the evacuation of coal from mines operated by Mahanadi Coalfields Limited (MCL) and several private mines. Similarly, the Bargarh Road-Nawapara Road new single line will improve the coal evacuation from the Talcher Coalfield.

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Minister Reddy praised the Coal Ministry and Coal/Lignite PSUs for their environmental efforts. Over the past five years, these PSUs have planted 24 million saplings on 10,942 hectares around coalfields, showcasing their dedication to combating climate change. The PSUs aim to cover 15,350 hectares with green cover in the next five years, including 2,600 hectares this fiscal year, using innovative techniques like the Miyawaki method, seed balls, and drones.

The Vriksharopan Abhiyan 2024 marks a significant step in environmental sustainability and ecological restoration, contributing to the 2070 net-zero target by creating carbon sinks and improving air and water quality. This initiative reflects a commitment to aligning economic growth with ecological preservation.

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Shri Amrit Lal Meena, in his keynote address, underscored the coal ministry’s commitment to sustainability. He highlighted efforts on land restoration and extensive afforestation programs that surpass the areas used for mining activities. In his opening remark, Shri M. Nagaraju emphasized the vital balance between economic benefits and environmental protection and stressed the need for securing clearances to ensure environmental sustainabilityThe coal companies presented videos on the best practices by their respective organizations in the inaugural session.

Speakers from the ministry of environment, forest and climate change shared their comprehensive insights into the regulatory framework, procedural requirements, policy updates, compliance strategies and best practices for obtaining environmental and forest clearance for coal mining projects featuring a series of informative sessions, and interactive discussions.

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The mines being auctioned are spread across coal bearing States of Jharkhand, Odisha, Maharashtra, West Bengal and Bihar.

Out of 39 coal mines, four mines are being offered under 2nd attempt of 7th round under CMSP/ MMDR Act, where single bid were received in the first attempt. Of the 35 coal mines being offered under 8th round, 16 coal mines are new ones and 19 mines are being rolled over from earlier tranches.

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The Ministry of Coal has taken note of the additional coal requirement for supplying to additional 80 GW thermal capacity to be added in the country by 2030.  The coal requirement for additional thermal capacity would be around 400 MT at 85% PLF, and the actual requirement may be lower depending on the generation requirements in the coming times due to contributions from renewable sources.

Ministry of Coal has plans to produce additional quantity of coal in its production enhancement plan and  will ensure adequate availability of domestic coal to thermal power plants.

Production plan includes opening of new mines, expansion of mines capacity and production from captive/commercial mines.  All these three operational components are contributing and have clear plans for further enhancement.   The production plans for year 2027 and 2030 will far exceed the likely domestic requirement of thermal power plants in the country, including that for likely additional capacity.

As regards coal situation for the current year, stocks have started building up and the coal stock at the thermal power plants is now around 20 MT and at the mines it is 41.59MT. The total stock (including transit and captive mines) is 73.56 MT as compared to 65.56 MT during last year, showing growth of 12% (year-on-year).

The Ministries of Coal, Power and Railways are working in close co-ordination.  Accordingly smooth coal supplies have been maintained.  It is to be noted that lowest TPP stock for this year was on 16.10.23, thereafter stock building at thermal power plants and mine end has started building up. 

The growth in power generation for domestic coal based plant is 8.99% while the growth in coal production is 13.02% on yearly basis (till date). It is further to be noted that during last three months, demand for thermal power has grown over 20% of last year.

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