India Boosts Coal Production and Exports to Strengthen Energy Security
New Delhi [India], July 29: The Ministry of Coal is leading a major initiative to reduce coal imports and promote coal exports. This aims to enhance domestic coal production, bolster energy security, and support the coal sector’s growth.
In the fiscal year 2023-24, India’s coal production increased by 11.65%, showing the government’s commitment to self-reliance. The production target for 2024-25 is set at 1,080 million tonnes, solidifying India’s position as a leading coal producer.
An inter-ministerial committee has been established to reduce coal imports. This committee will facilitate discussions among various ministries to identify opportunities for import substitution. While some high-grade coal imports are necessary, the focus is on minimizing non-essential imports and using domestically produced coal.
The government is also promoting coal exports to meet the growing global demand for fossil fuels. This initiative aims to position India as a key player in the international coal market, generating revenue and creating jobs.
Reducing coal imports and promoting exports are crucial for India’s energy security. By relying more on domestic coal, India can reduce its dependence on foreign sources and protect itself from global price fluctuations. This strategy is expected to positively impact the Indian economy by contributing to economic growth, creating jobs, and generating government revenue. It will also help conserve foreign exchange reserves.
A study by IIM Ahmedabad highlights the potential for exporting 15 million tonnes of coal to neighboring countries: 2 million tonnes to Nepal, 3 million tonnes to Myanmar, 8 million tonnes to Bangladesh, and 2 million tonnes to other countries. Additionally, the Maitree Super Thermal Power Project (MSTPP), a joint venture between NTPC and the Bangladesh Power Development Board, requires 5 million tonnes of coal annually, presenting a significant export opportunity for India.
By enhancing domestic production, facilitating import substitution, and promoting exports, India aims to achieve self-reliance, strengthen energy security, and support the coal sector’s growth. These efforts are expected to have far-reaching implications for the Indian economy and its position in the global energy landscape.
With ambitious targets and strategic initiatives, India is set to reinforce its energy security, reduce dependency on imports, and emerge as a prominent player in the global coal market.
Doubts Revealed
Ministry of Coal -: The Ministry of Coal is a part of the Indian government that looks after the production and distribution of coal in the country.
coal imports -: Coal imports mean buying coal from other countries. India wants to reduce this to use more of its own coal.
exports -: Exports mean selling goods to other countries. India plans to sell more coal to its neighboring countries.
energy security -: Energy security means having a reliable and steady supply of energy, like electricity, so that the country can function smoothly.
11.65% -: This is a percentage that shows how much coal production has increased. It means that India produced 11.65% more coal than before.
1,080 million tonnes -: This is a big number that shows how much coal India aims to produce. One tonne is 1,000 kilograms, so 1,080 million tonnes is a lot of coal!
inter-ministerial committee -: This is a group of people from different parts of the government working together to solve a problem, like reducing coal imports.
non-essential imports -: Non-essential imports are things that a country buys from other countries but doesn’t really need. India wants to buy less of these things.
domestic coal use -: Domestic coal use means using coal that is mined within India, instead of buying it from other countries.
15 million tonnes -: This is the amount of coal India plans to sell to other countries. It’s a big number, showing a large quantity of coal.
revenue -: Revenue is the money that a country or company earns from selling goods or services. India will earn money by selling coal.
creating jobs -: Creating jobs means providing work for people. By increasing coal production and exports, more people will have jobs in the coal industry.