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Industry and Infrastructure 281

issues faced by the sector also aim to strengthen the industry and to ensure that increase in
production of steel is achieved in a sustainable manner.

Coal

8.21 Coal is the most important and abundant fossil fuel in India and accounts for 55percent of
the country’s energy need. Coal production increased by 12.24 percent in April-October 2021
as compared to (-) 3.91 percent in April-October 2020. Overall production of raw coal in India
during the year 2020-21 was 716.08 million tonnes (provisional) as compared to 730.87 million
tonnes achieved in the previous year 2019-20(figure 20).

Figure 20: Coal - Production, Demand and imports of Coal

Source: Survey calculations based on data from M/o Coal
8.22 Despite the push for renewables, as per the Draft National Energy Policy of Niti Aayog,
the demand for coal is expected to remain in the range of 1.3-1.5 Billion Tonnes by 2030.
Nonetheless, several initiatives are being taken by the coal lignite producing PSUs to reduce their
carbon footprints. By 2020-21, the PSUs had brought 56000 Ha land under green cover creating
a carbon sink of about 5.0 Lakh Ton of CO2 equivalent/Year. It is envisaged to bring about
30000 Ha of addition land (in and around coal mining areas) under green cover by plantation of
around 75 million trees by 2030. Further, as on 31.03.2021, the PSUs have installed renewable
capacity of 1496 Megawatts and during the next 5 years it is planned to install additional 5560
Megawatts of renewable capacity with substantial carbon offset potential.

8.23 Opening up of coal mining for private sector is the most ambitious coal sector reform.
This will bring efficiency & competition in coal production, attract investments & best-in-
class technology, and help create more jobs in the coal sector. So far, 28 coal mines have been
successfully auctioned. Out of these, 27 coal mines have been auctioned to private companies.
Auction process for 88 coal mines is underway.