Current domestic coal production inadequate to meet country’s demand: Govt

The government on Thursday said the current domestic production is unable to meet the country’s demand, even though the country is the world’s second-largest producer of fossil fuel and the fifth-largest nation in terms of coal deposits. Currently, India is producing about 729 million tonnes of dry fuel, the coal ministry said in a statement.

“However, it is a fact that the domestic production is not able to meet the demand of coal in the country,” the statement said. Last year, India imported 247 million tonnes (MT) of coal and spent Rs 1.58 lakh crore worth of foreign exchange.

Commercial auction of coal mines along with transparent measures taken by the Centre has come at an opportune time to bridge the mismatch between demand and supply of coal in the country.

“This will not only provide a huge opportunity for employment in the backward regions but will also save foreign exchange to the extent of almost Rs 20,000 crore to Rs 30,000 crore per year,” it said.

These reforms will also have an effect on other sectors dependent on coal.