Coal Production

Coal Production

The country achieved its highest-ever coal production during 2023-24. The all-India coal production for 2023-24 stood at 997.826 million tonnes (MT), compared to 893.191 MT in 2022-23, marking an 11.71% growth.

By December 15, 2024, the nation had produced approximately 988.32 MT (provisional) of coal since January 2024, compared to 918.02 MT (provisional) during the same period last year, reflecting a 7.66% growth.

Coal Supplies

Up to December 15, 2024, coal supply in the country reached 963.11 MT (provisional), compared to 904.61 MT (provisional) in the corresponding period of the previous year, with a growth of 6.47%.

During the same period, the supply of coal to the power sector totalled 792.958 MT (provisional), up from 755.029 MT (provisional) in the previous year, registering a 5.02% growth.

Coal supplied to the Non-Regulated Sector (NRS) amounted to 171.236 MT (provisional), compared to 149.573 MT (provisional) during the same timeframe last year, showing a 14.48% increase.

Mission Coking Coal

The Ministry of Coal implemented significant reforms under the ‘Atmanirbhar Bharat’ initiative, aiming for domestic raw coking coal production to reach 140 MT by 2030. For 2023-24, domestic raw coking coal production reached 66.821 MT, with a target of 77 MT set for 2024-25.

Setting Up of New Coking Coal Washeries

Three coking coal washeries with a total capacity of 11.6 mln. tpa. were commissioned. Additional washeries planned included three by BCCL with a cumulative capacity of 7 mln. tpa. and five by CCL with a cumulative capacity of 14.5 mln. tpa.. Progress on eight washeries included two under construction, letters of intent/work orders issued for four, and two at the tendering stage.

Infrastructure Projects

The Ministry of Coal undertook 102 First Mile Connectivity (FMC) projects with a capacity of 1,040 MT for efficient coal evacuation. By 2024, 39 projects (37 under CIL and two under SCCL) with a combined capacity of 386 MTPA were commissioned.

To strengthen energy security and reduce dependence on imported coal, the Ministry set targets of producing 1.31 BT by FY25 and 1.5 BT by FY30. Efforts also focused on improving coal transportation via cost-effective, fast, and ecofriendly methods.

The Ministry developed a National Coal Logistic Plan, enhancing first-mile connectivity near coal mines through railway sidings and strengthening rail networks in coalfields. The mechanized coal transportation and loading systems, under the FMC projects, reduced road dependency. Coal Handling Plants (CHPs) and SILOs with rapid loading systems improved coal sizing, crushing, and computer-aided loading efficiency.

By reducing manual processes, pre-weighed coal of better quality was loaded, improving turnaround time for wagons, decreasing road network pressure, and promoting environmental sustainability.

Commercial Mining

To reduce coal imports and boost domestic production, an auction-based regime was introduced in 2014, allowing private sector participation for captive use. In 2020, commercial coal mining was opened to private players, with the first auction launched on June 18, 2020, and 20 coal mines allocated.

By 2024, a total of 113 coal mines had been auctioned under commercial mining, with a peak rated capacity (PRC) of ~257.60 MTPA. Once fully operational, these mines were expected to generate employment for approximately 348,268 individuals and attract investments exceeding Rs. 38,600 crores.

On December 5, 2024, the Ministry launched the 11th round of coal mine auctions, offering 27 mines. Vesting orders were issued for 17 coal mines, and Coal Mining Development and Production Agreements (CMDPAs) were signed for 20 mines during 2024.

Cover photo: www.pexels.com


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