India permits coal mines to hike output without feedback

India also plans to reopen more than 100 coal mines, previously considered unprofitable.

New Delhi, First Published May 11, 2022, 2:31 PM IST | Last Updated May 11, 2022, 2:31 PM IST

India's environment ministry has permitted coal mines with clearances to raise output by 40 per cent to step production up to 50 per cent without seeking local input, as per the memo seen by Reuters.

The decision was in response to a request from the coal ministry, which cited severe pressure on domestic coal supply in the country, according to the letter dated May 7, adding that the special dispensation will last for six months, following the memo.

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India also plans to reopen more than 100 coal mines, previously considered unprofitable, as the world's third-largest greenhouse gas emitter faces its worst power crisis in over six years due to the scorching heatwave, forcing the country to ramp up coal consumption after months of low consumption.

The memo further read that the project must be awarded expansion environmental clearance to raise its production capacity to 50 per cent of initial capacity within the same mine lease area without requiring a revised environmental effect assessment study for additional capacity or public engagement.

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Due to the post-pandemic economic recovery and an unremitting heatwave, demand for coal has increased. The government is pressuring utilities to increase imports and coal in India to increase production to solve supply constraints.

India, the world's second-largest coal producer, importer, and user behind China, uses coal to meet about 75 per cent of its electrical needs.

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