Launching the auction process of coal blocks for commercial mining, Coal Minister Pralhad Joshi has said that coal will continue to be an important resource for the next 3 to 4 decades despite rise in use of renewable energy. Referring to the recent shortage of coal which created an impact across the world, he said India will need huge amounts of the resource as its power consumption is expected to double by 2040.

Pointing to the amount of coal imports despite high international prices and available reserves, he said that the next generation will curse governments if they don’t start using available coal.

He assured that there is coal stock for 22 days at Coal India’s facilities as of now, and the supply will increase with the monsoon receding now. With the government reducing the upfront amount for gasification, he proposed further incentives to end shortage of coking coal, along with a possible rise in rebate from 20% to 50% for the successful bidder if coal gasification is conducted. 

Amidst recent reports of various state governments urging the Centre to ensure shortage of coal doesn’t lead to power outages, he noted that the ministry is doing its best to fulfil demand at all costs. He pointed out that though India ranks amongst the lowest in per capita power consumption across the world, the Union Government has ensured power supply to over 18,000 unconnected villages and lakhs of households which is leading to a surge in power demand.

Referring to PM Modi’s view to ensure availability of all sources of energy to enable India’s entry into the league of developed nations, Coal Secretary Anil Kumar Jain stressed upon the need to substitute costly imported coal with local resources for economic self-reliance in the long run.

He said that the current auction will come as a relief for carbon investors as the sector is expected to witness growth in the next 10 years. He reminded that India can’t wait to stop use of coal till clean energy sources rise to a similar scale.