core sector communique

Coal Resources in the Country

As per the latest National Inventory on Indian Coal Resources by GSI, as on 1.4.2010, the total coal resources assessed are about 276.81041 billion tones of which about 110 billion tones or 40% are proved reserves. The extractable reserves are estimated to be around 55 billion tones. At the current level of production of about 550 million tones per annum, the extractable reserves of coal in the country would last for about 100 years. However, the extractable reserves will increase as more coal reserves come into proved category.

Besides this coal is also imported, the import of coal in 2009-10 increased from 59.003 mts. In 2008-09 to 73.255 mts. i.e. an increase of 14.252 mts. The extent of increase in import of coal during 2008-09 over the previous year was 9.209 mts.

To encourage production of coal, captive mining is now permissible by private companies engaged in the generation of power, production of iron and steel, production of cement, coal gasification and coal liquefaction and other end uses, to be notified by the Government from time to time. In this regard 208 coal blocks with 48.82 billion tones reserves have been allocated so far to the government companies and approved captive end users for captive mining. As far as foreign direct investment (FDI) in coal sector is concerned, 100% FDI under the automatic route is allowed by the Government. Besides, the Coal Mines (Nationalization) Amendment Bill 2000 was introduced in Rajya Sabha in April, 2000, which seeks to permit private participation in coal mining, without the existing restriction of captive use, in order to augment coal production in the country.

This information was given by the Minister of State in the Ministry of Coal and Statistics and Programme Implementations, Shri Sriprakash Jaiswal in written reply to a question in Rajya Sabha today.