The government on Wednesday admitted that the country will face a huge shortfall of 269 million tonnes of coal by 2021-22 as the coal producing entities have failed to keep pace with the demand as well as economic growth.

"In the last 8-10 years, the economy grew at a much faster pace compared to coal production even as the Coal India Limited registered a growth of 7-8 per cent. We are trying to adopt different technologies which are more efficient in coal usage to meet the demand," coal minister Sriprakash Jaiswal said in Lok Sabha during question hour.

As per estimates, demand for coal in 2021-22 is projected at 1,353 million tonnes against the production assessment at 1,084 million tonnes, leaving a shortfall of 269 million tonnes.

"In view of the widening demand-supply gap of coal, the country is unlikely to become self-reliant in meeting the demand of coal indigenously in near future," Jaiswal said.

He also informed the House that several states were allocated coal blocks more than five years ago but no where the states have started production.

Chattisgarh was allocated nine coal blocks more than five years ago, Maharashtra was given seven blocks and Madhya Pradesh 10 blocks, he said adding that unfortunately no production has begun at any of these blocks.

Replying to a supplementary on whether irregularities in allocation of coal blocks have come to the notice of the government, Jaiswal replied in negative. He also said that now coal blocks are allotted only through competitive bidding and there was no possibility of any wrongdoing.

In view of India producing only 10 per cent of good quality coal, it has been placed under Open General Licence (OGL) scheme so that industries like sponge iron, steel and power producers could import good coal as per their demand.

Jaiswal opposed Madhya Pradesh government's demand that all coal produced in the state should be allotted to it for the development of industry there.

This prompted leader of the opposition Sushma Swaraj to intervene and clarify that Madhya Pradesh chief minister never demanded that whatever coal was produced in the state be given to them. He had said that state's demand should be met first from the coal produced in the state.