Amidst strategic initiatives and infrastructural enhancements, the Indian government is poised to achieve a significant milestone in coal production.
Anticipating a robust output, officials have expressed confidence in reaching a target of 1.08 billion tonnes of coal during the fiscal year 2024-25. A senior official shared insights, stating, “This year, we will produce 1,080 million tonnes of coal.” He highlighted the increase in rake deployment and emphasised the inauguration of 20 first-mile connectivity projects featuring coal handling plants and silos. These infrastructural developments aim to bolster coal evacuation capabilities and streamline operations. Coal India, a key player in the sector, is anticipated to contribute 838 million tonnes to the envisioned target. This projection comes after a revision from the earlier target of 850 million tonnes, attributed to substantial stocks at thermal power plants.
While the government fell short of its FY24 target, with coal output reaching 997.4 million tonnes, it achieved a notable increase of 11.67% from the previous fiscal year. Undeterred by the shortfall, plans are underway to open three coking coal mines in Jharkhand, ranging from 5 to 6.5 million tonnes in capacity. The initiative to open coking coal mines aligns with efforts to reduce coking coal imports, a move crucial for the steel sector. Currently heavily reliant on imports, the government aims to enhance domestic production, reduce dependency, and optimise resources. “We wish to set up more washeries, auction high-grade coal to the steel sector exclusively, and change the technology in steelmaking,” remarked the official. These measures, coupled with advancements in coal production, are anticipated to yield tangible results in import reduction within the next few years. Despite challenges, including coal shortages and evolving market dynamics, Coal India and other stakeholders remain committed to enhancing production. Notably, coal production efforts have seen an uptick, with cumulative coking coal production reaching 66.63 million tonnes in FY24, showcasing progress towards self-sufficiency and strategic resource management.
