Coal export strategy in works; local lithium hunt gains pace | Mint - Mint

The Centre has set a target of making India a net exporter of coal. What is your roadmap for that, and which markets are you looking at?

India exports coal of about 2 mt to neighbouring countries like Nepal, Bhutan, and Bangladesh. Several measures have been initiated to increase domestic coal production. According to the projection of demand and supply of coal, India will produce more coal than total demand beginning from 2025-26. This enhanced domestic coal production will enable not only to meet domestic coal demand but also give surplus coal for export. Accordingly, a strategy will be adopted to tap marketing avenues.

We aim to become Aatmanirbhar in coal by enhancing production, efficiency and sustainability. With a record coal production of 893.08 mt in FY23, registering a growth of about 14.76%, annual coal production is targeted at 1.12 billion tonnes in FY24. This growth has come due to the steps taken in the past nine years by the government.

Will India be able to curb imports of coal going ahead?

Import of coal is under open general licence (OGL), which means coal is freely importable without restrictions and licence. Hence, coal is being imported both on essentiality considerations and economic considerations. The import of some categories of coal such as coking coal (used by the steel sector), low ash coal (<9% ash coal used by imported coal-based, or ICB, power plants), and anthracite coal are essential as their domestic production is either scarce or not available.

This essential coal import constitutes about 30-40% of the total imports. Thus, remaining more than 60% of the coal imports, which are imported due to the demand-supply gap and other logistic or economic considerations, may be substituted by domestic coal. It is also expected that in the long run, technological changes in the steel sector and ICB plants will further reduce the requirement for essential imports.

India has recently found significant lithium reserves. Will we see further lithium reserves in the country?

Yes, GSI is carrying out systematic mineral exploration activities for various mineral commodities, including lithium, in different parts of the country. In the last five years (FY18 to FY23), GSI has carried out 40 projects on lithium and associated minerals in different parts of the country. GSI could establish lithium resources in the Reasi area of Jammu and Kashmir. As a follow-up, the lithium investigation programme has been taken up in adjoining areas of Reasi during field season FY24.

Recently, following the MEMC Amendment Rule 2021 (Amended MMDR Act 2021), GSI has handed over two geological memorandums on lithium to the Chhattisgarh and Andhra Pradesh state governments for auctioning as composite licences. In field season FY24, GSI has taken up six projects on lithium investigation in the states of Chhattisgarh, Meghalaya, Jammu and Kashmir, and Andhra Pradesh.

The government has announced several steps to ensure coal availability during the summer season. How prepared are we to meet the power demand in September-October?

In 2014, the production was 560-570 mt. Last year, we reached around 893 mt. It is a record production in independent India. For that, we put a lot of effort in spite of having different party governments in different states. We have increased production in the last few years. The policy changes that we have brought have also helped. We allowed captive plants to sell 50% of their stock in the market after their captive requirement was met. In case all the clearances are there, but the plant is not ready, we have allowed them to sell their coal in the market. With additional commercial coal mining, we have reached around 8 mt, and next year, at least another 7-8 commercial coal mine operations will start. So, for the first time in India, because of all these initiatives, we will be reaching 1 billion tonnes. I am confident that there will not be a problem in future as far as coal is concerned, even in the rainy season.

Is India looking at reserves of other battery minerals like cobalt as it seeks to be independent in battery?

To achieve self-reliance, GSI has given thrust on exploration of various metallic and non-metallic minerals throughout the country. As I have said earlier, emphasis has been given to various critical and strategic minerals like REE, tin, tungsten, molybdenum, nickel, cobalt, PGE, lithium, etc., where the domestic demand is import-dependent and where efforts have been put for increasing self-sufficiency and self-reliance by taking more exploration projects. GSI has taken up 117 projects on critical and strategic elements during field season FY24. Out of this, two projects have been taken up for the exploration of cobalt in Andhra Pradesh and Karnataka.

A slew of reforms in the mining sector is proposed through the amendment to the MMDR Act and bills for the mining of deep-seated and offshore minerals. Will the legislative exercise be carried out in the upcoming monsoon session?

There are a few pieces of legislation that will allow the auction of offshore minerals and other beach sand minerals, including deep-seated and critical minerals. We are looking at completing the consultation process on the legislation and taking cabinet approval for it soon. The government can work quickly to get Parliamentary approval for the legislation.

What is your vision for the diversification of Coal India’s operations amid the energy transition journey?

To diversify its business of production and marketing of coal and coal products, Coal India Ltd (CIL) has identified solar power generation, pit head thermal power plants, integrated greenfield aluminium business, surface coal gasification and acquisition of mining assets abroad in respect of critical minerals.

A target of commissioning 3000MW solar projects by CIL has been fixed by FY26 by developing ground-mounted solar projects in CIL-owned land as well as in various solar parks identified for the purpose on a pan-India basis. CIL has already signed MoU with the Rajasthan government for 1190MW of solar projects.

CIL will also be setting up two pit head power projects of 1x660 MW at Madhya Pradesh through a joint venture with the state government and 2x800 MW at Odisha through its subsidiary of MCL. In respect of coal gasification projects, three projects have been identified at WCL, ECL and MCL, each. CIL has also signed MoUs with BHEL, IOCL and GAIL for taking up these projects.

In respect of the integrated greenfield aluminium project, CIL has requested the government of Odisha for a long-term linkage of bauxite and will produce primary aluminium ingots and value-added products.

CIL is also looking to acquire assets abroad, especially in Australia, Argentina, Canada and Chile for lithium deposits, Indonesia, Australia and Russia for nickel and Australia and the Philippines for cobalt.

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