Page 56 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

readiness level (TRL) for sustainable utilization of Indian coal. This is in line with the country’s Net Zero
commitments. The Coal Ministry is also keen in developing research capabilities in coal sector and
advised to take up research projects relevant to India’s coal and energy sectors.

Shri G Kishan Reddy, Union Minister of Coal & Mines was the Chief Guest, and the pact was formally
signed in his presence by P M Prasad, Chairman, CIL and Prof. B S Murty, Director, IITH in Hyderabad.

CIL’s management has green flagged a grant of Rs.98 Crores to IITH for a duration of five years for
setting up this Centre of Excellence. It is anticipated that the project will be financially self-sustainable
beyond the initial five-year funding received from CIL.

CIL’s Board earlier in July 2024 has given its nod to focus on providing grants to reputed government
institutions and research organizations under R&D expenditure. The objective is to enhance research
capabilities and establishment of Centres of Excellence.

The current collaborative model is an R&D endeavour under the umbrella of National Centre for Coal
and Energy Research (NaCCER). This is an independent R&D unit of CMPDI, the mine development and
consultancy arm of CIL.

CLEANZ envisions net zero utilization with special emphasis on low grade and rejected coal. The
thematic areas under CLEANZ are enhanced coal bed methane and coal mine methane recovery, carbon
capture technologies, coal gasification and syngas utilization, energy efficiency and conservation,
artificial intelligence and machine learning among others.

Other salient features are training and assisting CIL officials in tech adoption, skill and capability
enhancement, extraction and beneficiation technologies for critical minerals.

Coal Imports During April-December 2024 Drops by 8.4% Compared to Same Period of FY 2023-24

Coal imports to the country during April to December 2024 fell by 8.4%, totalling 183.42 million tonnes
(MT), compared to 200.19 MT in the same period of previous fiscal year. This reduction resulted in
foreign exchange savings of approximately $5.43 billion (?42,315.7 crore). Notably, the Non-Regulated
Sector, excluding the power sector, experienced a more significant decline, with imports dropping by
12.01% year-on-year. Although coal-based power generation grew by 3.53% from April to December
2024 compared to the previous year, imports for blending by thermal power plants sharply decreased
by 29.8%. This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance
self-sufficiency in coal production.

The Government of India has implemented several initiatives, including Commercial Coal Mining and
Mission Coking Coal, to enhance domestic coal production and reduce imports. These efforts have also
led to an encouraging 6.11% growth in coal output during the April-December 2024 period compared to
the same period of FY 2023-24.

India's coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a
primary energy source for critical industries like power generation, steel production, and cement

March 2025 Page | 55