Coal and lignite production hit the billion tonne-mark on Friday — rising almost 7% from the last fiscal year — with coal minister Pralhad Joshi crediting the Modi govt for the reforms initiated since it assumed office in 2014.
Faced with a shortfall in coal production and supply, govt has been seeking to push domestic output to reduce imports. While a break-up was not immediately available, coal production was estimated to have increased to 870 million tonnes between April and Feb 26. Record coal output bodes well for power consumers ahead of summer In past Joshi had told media that production will top a billion tonne in the current fiscal ending March 31 and the country will be self-sufficient by March 2025.
Terming it a “historical high”, in a social media post on Saturday, the minister credited PM Narendra Modi for “leading India’s coal mining sector to unprecedented growth” and bringing “everyone together to achieve the milestone. “With this, we have unlocked a major milestone for the coal mining sector, thereby assuring energy security to the nation,” he said. The surge in coal production in India holds promising prospects for power consumers, particularly as the nation braces for increased electricity demand during the upcoming summer season. With coal-fired plants currently supplying over 70% of the electricity flowing in the national grid, the achievement of surpassing the billion-tonne mark in coal and lignite production signifies a crucial milestone in ensuring energy security.
Since the initiation of reforms in 2014, coal production has been on an upward trajectory, driven in part by landmark decisions such as the Supreme Court’s ruling in the same year, which deemed the allocation of 218 mines since 1993 without bidding as “illegal”. This judicial intervention, as highlighted by the federal auditor CAG, revealed a presumptive loss of nearly Rs 1.8 lakh crore to the exchequer, prompting significant reforms in the coal sector. The pace of production growth has gained momentum particularly during the second term of the Modi government, as the seeds of reforms sown in the first term began yielding dividends. The focus of these reforms has been multifaceted, aiming to enhance production and mining efficiency through technology induction, improve connectivity for evacuation, and foster participation from private miners.
One significant outcome of the surge in domestic coal production has been the reduction in the share of imported coal in power plants, dropping to 21% during the period from April 2023 to January 2024, down from nearly 22.5% in the previous corresponding period. This decline underscores the growing self-sufficiency in coal production and a reduced reliance on imports to meet energy demands. Looking ahead, India’s role in global coal demand growth is poised to be substantial, with projections from the International Energy Agency indicating that India will be the main engine driving global coal demand growth through 2026. With consumption expected to rise steadily, the nation’s robust coal production capabilities are set to play a pivotal role in shaping its energy landscape and ensuring energy security for its citizens.
