In a significant shift towards bolstering its energy sector, India is eyeing a potential to export 15 million tonne (MT) of coal to neighboring countries, including 8 MT to Bangladesh, 3 MT to Myanmar, 2 MT to Nepal, and 2 MT to other neighboring regions, according to a study by IIM Ahmedabad.
The ministry of coal is spearheading initiatives to reduce coal imports and promote exports, aiming to strengthen India’s energy security and enhance domestic coal production. As part of these efforts, the coal production in India has seen an 11.65% increase in the year 2023-24. For the fiscal year 2024-25, the government has set an ambitious target of achieving a production of 1,080 million tonne.
An Inter-Ministerial Committee has been established to streamline the process of reducing coal imports. The committee’s role is to facilitate discussions and coordinate efforts among various ministries to identify opportunities for import substitution, focusing on minimizing non-essential imports while promoting domestically produced coal.
Moreover, the government’s drive to reduce dependency on imported coal is complemented by efforts to tap into the international coal market, aiming to generate substantial revenue and create employment opportunities within the sector.
The strategic reduction in coal imports coupled with an increase in exports is critical for ensuring India’s energy security. By leveraging more on domestically produced coal, the country aims to mitigate its reliance on foreign sources and shield itself from global price volatility.
This shift in the coal sector is anticipated to yield significant economic benefits. Increased coal production and exports are expected to contribute to economic growth, job creation, and enhanced government revenues. Additionally, this will aid in conserving foreign exchange reserves.
One of the key projects highlighting this initiative is the Maitree Super Thermal Power Project (MSTPP)(2X660 MW) in Bangladesh, a joint venture between NTPC and the Bangladesh Power Development Board (BPDB), which requires 5 million tons of coal annually as per international pricing policies.
These transformative steps undertaken by the Ministry of Coal mark a pivotal moment in India’s energy transition, aiming for greater self-reliance and a robust position in the global energy market.