Coal India aims to substitute 120 million tonnes of imported coal
In the 2018-19 fiscal, the country produced 730MT of coal, while 955MT was consumed, leading to a gap of 230-235MT
If law & order situations are conducive and land acquisitions go as targeted, Coal India, may be able to substitute 120 million tonnes of imports with domestically coal in the next three years.
It is planning to ramp up production by 50-55 million tonnes annually over the next three years to achieve the target for import substitution.
“In an effort to increase production it will spend Rs 10,500 crore in ordering new equipment this year and the next,” said Coal India chairman, AK Jha.
“This will be possible if land acquisition for new projects and law & order conditions in certain states with heavy mining operations improve,” Jha said.
Coal India is looking at substituting imports of coal used in non-costal power plants only since it is not possible to substitute coal consumed by coastal power plants as it would not be economically viable for them to transport coal from domestic mines.
Jha said: “Last year the country produced 730 million tonnes of coal and consumed 965 million tonnes. The rest 235 million tons was imported. Out of this 115 million tonne of imports is inevitable since it is coking coal not abundantly available in the country. The rest, around 120 million tonnes can be replaced by Coal India’s production,” said Jha.