Focus is to capture, not halt, carbon emissions: Coal min Pralhad Joshi

'Both domestic exploration and buying stake in overseas mineral mines is on the agenda'

The summer months this year witnessed commotion over coal as several states and thermal power plants claimed low supplies. The Ministry of Coal continued to maintain there was enough of it to meet the demand. Having pulled all strings to increase production, the ministry is aiming at zero coal import in two years. Pralhad Joshi, Union minister for coal, mines, and parliamentary affairs, in an interview with Shreya Jai, says India’s economic growth needed more coal and minerals, and the country would focus on absorbing carbon emission because stopping it was anti-growth. Edited excerpts: 

Has the domestic coal stock reached a level where we won’t see a repeat of this year’s demand-supply crisis?

There was no crisis in the first place. Growth in demand for power would have entailed coal imports of more than 50 per cent of our demand, but we ended up importing hardly 4-5 per cent. Nothing has gone wrong but we would need to meet the growing expectations, for which we are planning. Whatever is the demand from the power sector, it will be met by domestic coal this fiscal year.

We should compare current production with 2014 to ascertain the growth in the sector. In 2014, the dispatch of domestic coal was 572 million tonnes (MT), last year it was 817 MT and in the coming year it will be 900 MT. Normally we start October-November with around 12 MT but this year we have 27 MT with thermal power plants. By December, the stock will reach 31 MT.

Production by Coal India last year was 622 MT; this year it will be 700 MT. The output of captive coal mines was nil but this year it will be 89 MT and by next year 125 MT. By 2023-24, domestic coal production will be 1 billion tonnes and Coal India’s share will be 700 MT.

Coal supplies to sectors other than power are still below the optimum rate.

When international coal prices were low, they were importing but now when the prices have shot up, they are asking for domestic coal. We are supplying them what they need and by the end of November we will increase supplies. Our focus was on the common man, so more coal went to the power sector.

What is the kind of growth you are projecting in the coal and mines sector?

Our coal requirements will double by next year as compared to a decade back. For that we are prepared. By 2024, thermal coal import should stop. The economy is picking up and there will be demand for coal and minerals alike. In the past 15 months, more than 100 mineral mines, including gold, have been auctioned. The country’s steel production has also gone up. Our government has been investing heavily in infrastructure creation.

The Prime Minister told me if we import crude oil, it is fine. But we have to import coal, and it is a sin. That is why we have amended the Mines and Minerals (Development and Regulation) Act to build our self-reliance. Look at Odisha. Its revenue has doubled to Rs 50,000 crore and it has acknowledged it because of the reforms in the mining sector. Similar revenue growth has been in Madhya Pradesh, Chhattisgarh, etc. Several states opposing our reforms are now earning more by using them. We have simplified the clearance process in mining. Only 102 mineral mines have generated employment of 400,000 in the mineral-rich states.

Is there a plan to increase our rare earth minerals ownership to support battery storage plans?

Rare earth minerals would need some more policy push and we have started working on that. Both domestic exploration and buying stakes overseas in mineral mines are on the agenda, especially lithium and cobalt. We are looking to amend the MMDR Act to increase the exploration of these rare minerals in the country. A level of approval would be needed from the Department of Atomic Energy as well. We want to acquire stakes in lithium and cobalt mines and are in talks with Australia and Argentina for this.

India is under pressure globally to reduce fossil fuel consumption to control emissions. How will the coal sector contribute?

Stopping carbon emission immediately is not practical. What we can strive to do is absorbing such emission. Coal gasification and carbon-capture technologies will be our focus areas. The world’s best practices will be explored to reduce our emission. We will honour climate commitments, but, at the same time, we need to balance our energy security. Our primary focus currently is on coal gasification and we are providing financial incentives for it. Coal India is taking up several green initiatives but it needs better recording.

Is there a plan to have a coal regulator, now that there is significant private investment in the mining sector?

We might consider it when privately owned mines have significant production. Close to 80 per cent of the mines are auctioned at notified prices. When globally, the cost of coal was Rs 14,000 per tonne, Indian coal was Rs 1,800 per tonne. By 2024-25, when there is a good quantity of coal from these mines, we will consider. Discussion on this is on.

What plans are in place to improve coal transport?

Close to 39 first-mile connectivity projects have started with a cumulative expenditu­re of Rs 70,000 crore. This includes coal-ha­n­dling plants, conveyor belts, approach ro­­ads, waterways, new railway lines and si­dings. We are trying to use the sea route too.