Coal ministry seeks to ease green norms to boost domestic production

India's coal ministry will seek a relaxation of some environmental norms to help increase the country's overall coal production, coal minister Pralhad Joshi said on Tuesday.

Domestic demand for coal has risen considerably because of a steep hike in international prices, Joshi said, according to a press statement issued by India's Ministry of Coal.

The minister underscored that sustained supply of coal to the power sector is of paramount importance. He urged CIL and the Ministry of Coal officials to deliberate upon immediate measures required to enhance coal production.

Pralhad Joshi has also asked Coal India to complete 35 first mile connectivity projects as per the set deadlines.

Recently Coal Secretary said Indian industries, including steel and aluminum makers, will need to continue importing expensive coal shipments to meet their requirement, as the cheaper, domestically produced fuel will be prioritized to power generators.

While Coal India Ltd. will ensure that supplies to the non-power sector don’t decline, any deficit must be bridged by overseas shipments. The miner will fulfill demand from power producers, and only the remaining supplies will go to other industries, he said.

Benchmark Asian coal spot prices recently surged to a record as buyers across the region scrambled to find alternatives to Russian supply, further tightening the fuel’s availability. Meanwhile, India’s domestically produced coal is sold at a deep discount to overseas rates, with prices controlled by the nation’s top miner.

Coal India is pushing more supplies to power producers to avoid a repeat of last year’s shortage, prioritizing citizens over industries in order to deliver affordable energy.

(With inputs from agencies)