Coal Action Plan for 2022-23

In News

Recently, the Ministry of Coal, Government of India has finalised an Action Plan for 2022-23.

Major Focused Areas of Plan

• The Action Plan broadly focuses on the following areas:
  • Grey Hydrogen
  • Just Transition/ Energy Transition
  • Restructuring Coal Mines Provident Fund Organisation. (CMPFO)
  • Coal evacuation
  • Benchmarking of Machines & Quantifiable Parameters (Output per hr/per machine)
  • Outsourcing of Coal India Ltd. (CIL) Mines
  • Coal Trading Platform
  • Regulatory Mechanism for coal
  • Training
  • Corporate Restructuring of Coal Sector (CPSEs)
  • Quality Issues
  • Lignite Gasification
  • Coking Coal Strategy
  • Coal Pricing Reforms
  • Futuristic Agenda- comprises of :-
  • Coal to Chemical
  • CIL diversification
  • Robust Media campaign
  • Close monitoring of CSR activities
• This is for the second time that an Agenda document for the year has been brought out in the form of a compilation and provided to all senior functionaries who have been apportioned the responsibility of steering these focus areas through the year with regular monitoring and appraisals.
• The areas covered step up the major reforms done in the last few years.
• They also give direction for covering and meeting the existing and the emerging challenges of the Coal Sector and aligns itself well with the emerging technologies and diversification thrust of the Coal Sector.
• Work on the following areas from previous year’s Agenda will be continued this year also :
  • Coking Coal Strategy
  • Coal Pricing Reforms
  • Futuristic Agenda

Significance of Action Plan

• The Action Plan covers the entire gamut of areas for steering the Coal Sector into new technologies while focussing on the core competence of increasing production targets.
• Sunrise industries prospects will also be looked into.
• It will help to minimise import of thermal coal and to make the country Atma Nirbhar in the sector.

Issues in Coal Sector

• Unfair Coal Block Allocation:
  • The Coal Mines (Nationalisation) Act 1973 does not allow private companies to mine coal for sale to third parties, though captive mining is allowed for specified end-use sectors. 
  • There are political sensitivities in opening up the coal sector to private investment, but it is simply not logical to keep private investment out of coal when it is allowed in petroleum and Natural gas. 
  • There is a demand to amend the Coal Mines Act 1973. 
• Underground Mining:
  • Only 15% of India’s coal production is from underground mines. 
  • The industry aims to reach a total coal production of 30% from underground mines by 2030.
  • Considering emerging hurdles in forest clearance and land acquisition in future, serious efforts need to be made to increase the share of underground production by focussing on longwall technology and productivity in underground mines.
• Coal Regulation and Pricing:
  • India has the fifth-largest coal reserves in the world. 
  • There are huge power expansions plans, which need to be fueled by coal. 
  • However, there has been no coal regulator. 
  • The idea of a Coal Regulatory Authority was mooted in 2008, but it could not be established for unknown reasons. 
• Shortage in coal sector:
  • This issue is faced by the sector very regularly.
  • Despite all the green push in the Country, India can’t leave the coal sector behind.

• Import:
  • Despite such large reserves of coal, we have to import nearly 170 million tonnes of coal. 

Government Efforts 

• The Coking Coal Mission had been launched by the Ministry for enhancement of coking coal production from 45 Million Ton in 2020-21 to 140 MT by 2029-30 which includes 105 MT from CIL.
• Mineral Laws (Amendment) Act, 2020: 
  • Amendment to provide for allocation of coal blocks for composite Prospecting Licence-cum-Mining Lease (“PL-cum-ML”) to help in increasing the available inventory of coal/ lignite blocks for auction.
• Government’s aim is to increase domestic coal production to 1.2 billion metric tonnes by FY 23-24.

Way Ahead

• The smart option is to divert the resources to renewables and storage to build a cheaper, more resilient grid for the future.
• India must take a pledge that it will be energy independent by the year we celebrate the 100th year of Independence.

Source: PIB