The coal industry is expected to have increased output and financial assistance for projects including gasification in 2024

 The coal industry is expected to have increased output and financial assistance for projects including gasification in 2024

The coal industry is expected to have increased output and financial assistance for projects including gasification in 2024

More captive and commercial coal mines will be put into operation, and efforts will also be made to enhance the dry fuel and transportation infrastructure for responsibility for the environment. Mine record digitization is also planned.

One of the government's top goals for the coal industry is developing a strategy to provide financial assistance for coal gasification projects, boost output, and encourage underground mining operations. These initiatives are crucial to meeting the nation's rising energy needs.

More captive and commercial coal mines will be put into operation, and efforts will also be made to enhance the dry fuel and transportation infrastructure for a sustainable environment. Mine record digitization is also planned.

Coal Secretary Amrit Lal Meena told PTI in an interview that the government has already announced two policies pertaining to coal gasification and that it intends to provide financial assistance and tax breaks for such initiatives. As.

As part of its energy transformation plans, the Coal Ministry wants to gasify 100 million tonnes (MT) of coal by FY2030.

We are now proposing a program that would provide tax breaks and financial support for coal gasification plants. It is being considered... and we will make sure that coal gasification gains pace," Meena said.

Additionally, he underlined that efforts are being made by the government to provide favorable conditions for coal gasification.

By 2030, it is anticipated that coal gasification would lower imports, lower carbon emissions, and encourage sustainable behaviors.

In order to address environmental issues throughout the coal gasification process, the government has mandated that the project proponent create an environment management plan and complete an environment effect assessment study in order to get green clearance.

An expert committee will thoroughly review the proposal before any work pertaining to the establishment of a coal gasification facility is initiated.

Additionally, the Center has developed a policy that relaxes the revenue share by 50% for any upcoming commercial coal block auctions using fossil fuels utilized in gasification.

As long as gasification accounts for at least 10% of overall output, this will be possible.

In the deregulated sector, a different auction window has also been established to provide coal for new coal gasification units.

Out of the total of 91 commercial blocks including 55 captive mines, 51 mines are now in operation, according to the Secretary. In the previous fiscal year, these blocks produced 116 MT of coal; the goal for the current fiscal year, which ends in March 2024, is 162 MT.

By using large-scale production techniques, the government hopes to raise coal output from underground mines to 100 metric tons by 2030.

India has the second-largest coal industry in the world, and in the fiscal year 2022–2023, output is predicted to increase by 14.8% to 893 MT. The nation is second only to China in terms of its percentage of the world's coal output, which exceeds 10%.

The government is aiming to increase domestic coal production output to more than 1 billion tonnes in 2023–2024 and 1.5 billion tonnes by 2029–2030 in order to attain self-sufficiency in coal production and decrease imports.

Since coal drives thermal power plants, it is now essential to supply the nation's expanding energy demand.

The output of the dry fuel has increased due to a number of reasons, including the Single Window Clearance Portal for the industry and frequent evaluations by the Coal Ministry to speed up the development of coal blocks.

In order to help coal block allottees secure the necessary approvals for the early operationalization of coal mines, a Project Monitoring Unit has also been established.

According to policy think tank Initiative India Foundation (PIF) executive director Ravi Pokharna, India's economy is among the fastest growing in the world, and the country is still a major factor in the need for coal globally as a result of its expanding energy requirements.

This year, India reaffirmed its pledge to use non-fossil sources for 50% of its energy needs by 2030. The Indian government reaffirmed at COP 28 that it will keep utilizing coal to fuel economic development. Insist on rights and ask affluent nations to help developing economies make the transition," he said.

According to Sanjay Ganju, director general of the Indian Federation of Green Energy, between 50 and 100 metric tons of biomass would replace coal by 2030 based on the present use of 5–10% biomass co-firing.

"This is equivalent to decreasing 90 to 180 million CO2 emissions," he said.