Synopsis
The Indian government is prioritizing the reduction of coal imports while significantly boosting domestic coal production, as it is vital for energy security and economic growth. Recent statistics show a decline in imports and a rise in domestic output, reflecting a strategic move towards self-reliance in the coal sector.Key Takeaways
- Focus on reducing coal imports.
- Increase in domestic coal production.
- Coal accounts for 55% of energy mix.
- Mission Coking Coal aims for 140 MT by 2029-30.
- Coal sector supports 4.78 lakh jobs.
New Delhi, Feb 8 (NationPress) The government has emphasized that reducing coal imports and enhancing domestic production are critical priorities, as the coal industry is a fundamental component of India’s energy stability, significantly impacting the nation’s industrial and economic advancement.
With the fifth-largest geological coal reserves worldwide and being the second-largest consumer, coal remains a crucial energy source, contributing to 55 percent of the national energy mix.
About 74 percent of power generation in India depends on thermal power plants (TPPs), highlighting the necessity for a resilient and sustainable coal industry, stated Union Minister of Coal and Mines, G Kishan Reddy.
“The coal ministry is moving forward to achieve ‘Atmanirbharta’ in the sector,” the minister noted.
These initiatives have notably decreased dependence on imported coal. From April to November 2024, coal imports fell by 5.35 percent, resulting in savings of around $3.91 billion (Rs 30,007.26 crore). Importantly, coal imports for blending in domestic power plants dropped by 23.56 percent.
The Ministry’s ‘Mission Coking Coal’ aims to boost domestic coking coal production to 140 MT by FY 2029-30, thereby lessening the reliance on imports in the steel industry.
India’s coal production achieved a record high of 997.82 million tonnes (MT) in FY 2023-24, marking a significant increase from 609.18 MT in FY 2014-15, with a Compound Annual Growth Rate (CAGR) of 5.64 percent over the last ten years.
In FY 2023-24 alone, production has risen by 11.71 percent compared to the prior year.
As of January, the Ministry of Coal has allocated 184 mines, with 65 blocks obtaining Mine Opening Permissions.
Overall production from these blocks has reached 136.59 MT, reflecting a 34.20 percent year-on-year growth. This is projected to surpass the 170 MT target in FY 2024-25.
Among the eight core industries, coal has shown the highest growth rate, registering a 5.3 percent increase in December 2024 compared to the previous year.
Furthermore, the coal sector generates about 50 percent of freight revenue for Indian Railways and provides direct employment to nearly 4.78 lakh individuals, according to the ministry.
