The goal of Ministry of Coal is to enhance coal production and to ensure adequate availability of coal for the fast growing economy of the country. As a result of efforts of the Ministry, the share of imports in total coal consumption reduced from 26% to 21% during last five years. Still, India is importing more than 200 Million Tonne (MT) of coal annually by incurring huge foreign exchange outflow. Last year, India spent more than Rs. 3.85 lakh crores on import bill of coal. India has fourth largest deposits of coal. It is, therefore, prudent to enhance domestic production so as to reduce import dependence.
Coal bearing areas of the country are located in forest rich geographical areas. While Government of India is committed to protect and promote conservation and preservation of forests, however, keeping in view the need of the economy and energy demand, more and more coal mines are required to be made operationalized. At the same time, Ministry of Coal is deeply conscious of protecting forests therefore, only minimum forest area required is diverted and double the area is compensated for lost forest area.
