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Govt to auction 41 new coal blocks ‘very shortly’

In order to meet the domestic demand, there is a plan to increase the total production of coal in the country to the level of 1 Billion Tonnes by the year 2022-23
New Delhi: The Centre is planning to auction over 41 new coal blocks “very shortly,” Minister for Coal Pralhad Joshi said on Wednesday. While responding to a question in the Lok Sabha, he said that the government has taken a number of important steps to augment and monitor coal dispatches to power plants. The information was given away by Joshi while responding to a question in the Question Hour. Joshi said, “We are going to auction more than 41 new coal blocks very shortly.”

India’s coal demand increases by 7% y-o-y

According to a response submitted by Joshi in the Lok Sabha, India’s overall coal demand stood at 968 MT in 2018-19 as opposed to 898 MT in 2017-18, registering a 7 percent rise year-on-year. However, only a fraction of the overall demand was supplied by Coal India as it produced 606.89 MT and supplied 608.14 MT of coal in 2018-19. In FY20, Coal Indi has produced 136.96 MT of coal and supplied 153.29 MT at the end of June 2019.

Govt aims to push output to 1BT by 2023

In order to meet the domestic demand, there is a plan to increase the total production of coal in the country to the level of 1 Billion Tonnes by the year 2022-23, Joshi told the Lower House of the Parliament.

‘Demand-supply gap to continue’

The gap between demand and supply of coal cannot be bridged completely as there is insufficient domestic availability of coking coal and power plants designed on imported coal will continue to import coal for their production, Joshi said.