See Full Document Text
GOVERNMENT OF INDIA
MINISTRY OF COAL
RAJYA SABHA
UNSTARRED QUESTION NO. 1007
ANSWERED ON 09.02.2026
COAL SECTOR – PRODUCTION, IMPORT AND ENVIRONMENTAL IMPACT
1007 # Dr. SANDEEP KUMAR PATHAK:
Will the Minister of COAL be pleased to state:
(a) details of coal production, domestic demand and import in the country during the last
five years, State-wise and year-wise and the details of concrete steps taken by Government
to reduce the dependence on import;
(b) details of major reasons for not achieving the production target in public and private
sector mines;
(c) details of the current status of land acquisition, environmental damage and rehabilitation
of displaced families in areas affected by coal mining; and
(d) details of the strategy adopted by Government to strengthen environmental compliance
and monitoring in coal sector, considering clean energy targets and climate commitments?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The quantity of coal produced in the country during the last five years is given below:
[Figures in Million Tonnes (MT)]
State / Year 2020-21 2021-22 2022-23 2023-24 2024-25
Odisha 154.15 185.07 218.98 239.40 269.36
Chhatisgarh 158.41 154.12 184.90 207.26 204.95
Jharkhand 123.43 130.10 156.48 191.16 206.19
Madhya Pradesh 132.53 137.98 146.03 159.23 167.57
Telangana 52.60 67.23 69.64 72.52 71.51
Maharashtra 47.44 56.53 63.62 69.28 70.78
West Bengal 30.46 29.07 32.80 37.26 36.09
Uttar Pradesh 17.02 18.07 20.54 21.51 20.86
Assam 0.04 0.03 0.20 0.20 0.20
Jammu & Kashmir 0.01 0.01 0.01 0.01 0.01
Total 716.08 778.21 893.19 997.83 1047.52
1The detail of consumption / demand of coal in the country including imports during the last
five years is given below:
Figures in MT
Year 2020-21 2021-22 2022-23 2023-24 2024-25
Total Domestic Coal Supply (a)
690.88 819.21 877.37 973.01 1025.33
Total Import (b)
215.25 208.63 237.67 264.53 243.62
Total Consumption / Demand (a+b)
906.13 1027.84 1115.04 1237.54 1268.95
Most of the requirement of coal in the country is met through indigenous production / supply.
The focus of the Government is on increasing the domestic production of coal and to eliminate
non-essential import of coal in the country. The efforts made by the Government to encourage
use of domestically produced coal and to reduce coal import dependency are as under:
i. The Annual Contracted Quantity (ACQ) has been increased upto 100% of the
normative requirement, in the cases where the ACQ was either reduced to 90% of
normative requirement (non-coastal power plants) or where the ACQ was reduced to
70% of normative requirement (coastal power plants). Increase in the ACQ results in
more domestic coal supplies, thereby, reducing the import dependency.
ii. Vide amendment to the Non-Regulated Sector (NRS) linkage auction policy introduced
in 2020, the tenure of coking coal linkages in the NRS linkage auction has been revised
for a period upto 30 years. Increase in tenure of coking coal linkages in the NRS linkage
auction for a period upto 30 years is expected to have a positive impact towards coal
imports substitution.
iii. Government has decided in 2022 that coal to meet the full Power Purchase Agreement
(PPA) requirement of all the existing linkage holders of Power Sector shall be made
available by the coal companies irrespective of the trigger level and ACQ levels. This
decision of the Government of meeting the full PPA requirement of the linkage holders
of the Power Sector shall reduce dependence on imports.
iv. Efforts are being made on a continuous basis to ensure more domestic supplies of coal.
Thus, the entire substitutable imported coal is expected to be met by the country and no
import, other than the very essential should happen.
v. A new sub-sector ‘Steel using Coking coal through WDO route’ has been created in
March, 2024 under the NRS linkage auctions which will lead to increase in the domestic
coking coal consumption and also increase availability of washed coking coal in the
country, thereby, reducing coking coal imports.
vi. Coking Coal Mission has been launched to enhance coking coal supply to the Steel
Sector to reduce imports of coking coal. Initiatives have been taken to enhance coking
coal production.
vii. Imported Coal Based (ICB) Plants have been allowed to secure coal under the Revised
SHAKTI Policy, 2025. The coal availability for ICB Plants under this Policy is
expected to reduce dependence of these ICB plants on imported coal.
viii. Existing Fuel Supply Agreement (FSA) holders have been allowed to secure coal under
the Revised SHAKTI Policy, 2025 after procuring 100% of the ACQ coal under
existing FSA. Coal availability beyond the ACQ to existing FSA holders benefits the
power producers to meet the full requirement of the power plants.
2(b): Major constraints faced by the coal companies for achievement of coal production targets
are as under:
i. Issues relating to land acquisition and Rehabilitation & Resettlement (R & R).
ii. Delay in Forestry and Environmental Clearances.
iii. Evacuation & logistics constraints.
iv. Law & Order issues.
v. Shortage of stowing material and adverse geo-mining conditions in some
underground mines.
(c) & (d): Subsidiaries of Coal India Limited (CIL) mostly acquire land under CBA (A&D)
Act 1957. The lands for the Projects of NLCIL at Neyveli are acquired by the Government of
Tamil Nadu under the LA Act – “Tamil Nadu Acquisition of Land For Industrial Purposes Act,
1997”. SCCL acquires land in accordance with the provisions of the relevant Acts and
Government Orders.
Land & Asset compensation and Rehabilitation & Resettlement (R&R) benefits are provided
as per the provisions of Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 [RFCTLARR Act, 2013]. The subsidiaries of CIL
also follow its R&R Policy, 2012 and provide R&R benefits over and above existing norms
based on the local conditions. Any State specific guidelines regarding procedures and benefits
to be extended to project affected families in case of compulsory acquisition are also followed.
The Ministry of Environment, Forest and Climate Change (MoEF&CC) stipulates various
conditions in the Environmental Clearances issued to coal mining projects for the
implementation of eco-friendly measures. All the mines are operated with valid Consent to
Operate granted by the Pollution Control Board. Periodic compliance reports are submitted to
the MoEF&CC as well as to the respective State Pollution Control Boards, thereby ensuring
adherence to prescribed standards. Further, the coal companies are aligning their mining
operations with India’s climate commitments through the following measures:
i. Environmental safeguards: Strict compliance with environmental clearances, adoption
of scientific mine closure plans, and large-scale land reclamation and afforestation.
ii. Renewable Energy & Energy efficiency: Investment in renewable energy projects and
energy efficiency initiatives to complement coal-based operations.
iii. Technology adoption: Deployment of cleaner mining technologies, mechanized dust
suppression, and use of eco-friendly & blast free mining technology (like surface
miners, rippers, continuous miners, highwall & longwall mining) in coal production
and removal of overburden.
iv. Community focused repurposing activities: Implementation of community
development projects in the mined-out areas in line with the mine closure guidelines.
*********
3