The government said Thursday that despite the country’s second-largest producer of fossil fuels and fifth-largest coal deposit, current domestic production cannot meet national demand. It was. The Ministry of Coal said in a statement that India is currently producing about 729 million tonnes of dry fuel.
“But it is true that domestic production cannot meet domestic coal demand,” the statement said. Last year, India imported 247 million tonnes (MT) of coal and spent 1.58 rupees worth of foreign exchange.
Along with the transparent measures taken by the center, the commercial auction of coal mines has come a great opportunity to bridge the mismatch between domestic coal supply and demand. “This will not only provide great opportunities for employment in underdeveloped areas, but will also save foreign exchange in the range of around Rs 20,000 to Rs 30,000 per year,” he said.
These reforms will also affect other sectors that depend on coal. The increase in coal production will also have a positive impact on the production and processing of the steel, aluminum, fertilizer and cement sectors.
The auction of coal blocks for commercial mining began in June, with 38 blocks on the first tranche. Of the above blocks, the auction process completed successfully in 19 blocks in November.
The total annual revenue from the auction is estimated at 6,656 rupees, taking into account the production at the total peak rate capacity level of 51 million tonnes per year. During the 2020-21 fiscal year, the state will receive a total advance payment of Rs 26.2 billion and then the remaining amount of Rs 78.6 billion based on the milestones stated in the bidding documents.
Import substitution is one of the government’s top priorities. For that purpose, an inter-ministerial committee has been set up.
Toward the goal of Aatmanirbhar Bharat, the ministry, along with all stakeholders, is actively pursuing the mission of import substitution.
Current domestic coal production is insufficient to meet national demand: government
Source link Current domestic coal production is insufficient to meet national demand: government