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What is CoalSetu: What is CoalSetu Scheme, which has been launched by the government to bring self-reliance in the coal sector. The government says that this scheme will bring self-reliance in the coal sector and will also help the country save thousands of crores of rupees every year.
New Delhi. The Government of India has made major changes in the CoalSetu scheme to achieve self-reliance in the coal sector and reduce the burden of imports. Its objective is to give more freedom to mining and investment in the coal sector and also to increase production and make its export easier. This scheme has made India largely self-reliant in the coal sector and imports are continuously declining. Coal Setu scheme will also save thousands of crores of rupees spent on imports every year.
Although the government had given way to commercial mining in the coal sector in the year 2020 itself, there are preparations to take this sector to new heights through Coal Setu. Through this, major reforms have been made in the coal linkage policy. This policy was started in the year 2016 and now through major reforms, there is a preparation to make the country self-reliant in this sector by making the coal sector Shaktikali.
How will Coal Bridge work?
The Coal Setu Scheme improves the existing coal linkage policy. It provides that coal can be allocated to end users of coal such as cement, steel, sponge iron and aluminum sectors only through auction. As part of the reform, a portal named Kolasetu has been started under the policy of 2016. Through Coal Setu, transparent use of coal can be promoted and the process of its allocation will also be simplified. Coal can be allocated for any industrial use or export only through auction.
What is the specialty of Kolsetu?
- Under this, any domestic buyer can participate in the linkage auction.
Coal can be used even without becoming an end consumer, which means that now we will be able to buy coal for personal use also. - In coal linkage, coal buyers will be able to export 50 percent of the total quantity.
- Fuel supply agreement can now be made only for a maximum of 15 years.
- Existing buyers of coal can also apply under the new window of linkage policy.
- Traders are not allowed to participate in this process, so that the market can be controlled well.
India becoming self-reliant
Due to the ongoing reforms in the coal sector, today India has become self-reliant to a great extent. The financial year 2024-25 has been the first year when coal production in the country has crossed 1 billion tonnes. The total production during this period has been 1.048 billion tonnes. Imports have been continuously decreasing in the last 5 years, which came down by 7.9 percent last year. This helped the country in reducing the import bill of about Rs 61 thousand crores. The coal sector is now also getting the support of the Railways and Indian Railways has transported 823 million tonnes of coal last year. The stock of coal near the domestic power plants has also now reached a record level.
