To meet that demand, and to limit coal imports, Goyal plans to
increase domestic coal production to 1.5 billion tons a year by 2020, from 2015 levels of 660 million tons.
Domestic coal production in Japan saw a precipitous drop over the past 30 years, from an estimated 24 million tons in 1980 to 3.5 million tons in the early 2000s, as the country closed all its coal mines and chose to rely on coal imports to meet its needs.
Because he has vowed to widen India's doors to foreign investment, rehabilitate its crumbling — or, in many regions, nonexistent — infrastructure, deregulate the retail industry and loosen the red tape that has
halted domestic coal production, investor confidence in the South Asian country has surged like never before.
While plans to
expand domestic coal production may run against this proposal, the Niti Aayong report said «energy security may be further enhanced through diversification of the import sources and reduced energy requirement».
Despite the much - touted solar expansion, India is also planning to
double domestic coal production to one billion tonnes, and it has been putting pressure on environmental groups trying to keep mining in check.
China, which increased
its domestic coal production by 3.5 percent last year, now accounts for 47.5 percent of global coal production, followed by the United States (13.4 percent) and India (6 percent).
That means tackling the red tape and corruption that currently hobbles India's
domestic coal production.
«Thus, it is important that India increases
its domestic coal production to provide energy security and reduce its dependence on imports,» it continued.
New coal - fired plants are also proposed in some developing countries where there's currently limited or
no domestic coal production, such as Cambodia and Senegal.
London - The World Coal Association (WCA) has welcomed news that Moody's has upgraded the outlook for India's power sector to stable from negative in view of surge in
domestic coal production.