In a move to increase the domestic coal production, Environment Ministry has eased the clearance norms to increase production from coal mines with 20 million tonnes per annum capacity. The Ministry of Environment has agreed to do away with public hearings for a one-time expansion of existing coal mines of 20 million tonnes capacity. The ceiling on additional production has been kept at 6 million tonnes per annum, if the transportation of additional coal is done by means of conveyor or rail transport.
The decision was taken after a request was put by the Ministry of Coal. Earlier, in July, the Environment ministry had allowed coal mines to increase production without undertaking public hearings from existing lease areas by 50 percent, or up to 1 million tonnes a year, whichever is greater.
India’s domestic coal demand is around 35 percent higher than domestic supply. Acute coal shortage in the country has become primary reason for power deficit in the country as coal-fired plants account for around 59% of India's total installed electricity capacity. Coal India (CIL), the only producer of coal in the country, is struggling to meet domestic coal requirements amid concerns like shutdown of mining activities in Talcher Coalfields in Odisha. CIL production fell 4.21 percent short of its production target to 462.53 MT in FY14. The government has set coal production target at 507 MT for CIL for FY15.