Private mines, CIL drive record coal output of 988 mt in 2024: Govt

Coal production from captive and commercial mines was 162 MT between January and November 2024, the ministry said

Coal production during the calendar year (CY) reached 988.32 million tonne (mt), compared to 918.02 mt during the same period last year, registering a growth of about 7.66 per cent, the coal ministry said in its year-end report, citing it as a new record.

 

It is expected that coal production will exceed the last financial year’s mark of 997 mt by the end of 2024-25 (FY25), driven by higher output from privately owned mines and enhanced supply from Coal India (CIL) mines.

 

Coal production from captive and commercial mines was 162 mt between January and November 2024, the ministry reported. Since 2015, 113 coal mines with a peak rated capacity of 257 mt per annum have been auctioned.

   

The ministry said that opening the sector to private participation aligns with efforts to reduce coal imports and promote domestic production.

 

“To strengthen India’s energy security and realise Atmanirbhar Bharat by replacing imported coal with domestically mined coal, the coal ministry has set a target to produce 1.31 billion tonne (bt) in FY25 and 1.5 bt in 2029-30 (FY30),” the ministry said.

 

The push towards zero imports comes even as the power ministry continues to mandate a certain threshold of coal imports for power plants, despite increased domestic production.

 

Recently, the coal ministry also initiated efforts to reduce the import of coking coal (used in non-power sectors). 

 

“The coal ministry has launched Mission Coking Coal to enhance domestic coking coal production and reduce imports, considering the projected demand of the steel sector. This mission aims to increase domestic raw coking coal production to 140 mt by FY30. The target for CIL subsidiaries is to raise raw coking coal production to about 105 mt by FY30, from 60.43 mt in 2023-24,” the ministry said.

 

As reported earlier, the Centre is preparing to launch Coal Reforms 3.0, aimed at reducing overall coal imports and increasing coal availability for industrial sectors. The coal ministry plans to unlock domestic coking coal production through several measures. The initial step involves a forward-bidding auction, where domestic coking coal will be auctioned through two routes.

 

“One route will be for steel units with washeries, and the other for those without. Those opting to wash their own coal will be allowed to sell the byproducts as well,” an official said. The official also said that the coal ministry would remove end-use restrictions for auction participants.

 

In terms of supply during CY 2024 (up to December 15, 2024), the country supplied about 963.11 mt of coal, compared to 904.61 mt during the same period last year, reflecting a growth of 6.7 per cent. Of this, coal supply to the power sector stood at 792.958 mt, a 5.02 per cent increase over the previous year. Coal supply to the non-regulated sector was 171.236 mt, showing growth of 14.48 per cent.