Thursday, 05 Dec, 2024
The production of coal has increased significantly from 565.77 MT in 2013-14 to 997.26 MT in 2023-24. Image Credits: IANS
The government has taken several steps in order to reduce imports and maintain a constant supply of coal in the country.
In October 2024, the Ministry of Coal recorded a significant rise in total coal output of 84.45 million tonnes (MT), which was 7.48 percent higher than the 78.57 MT produced in the same month the previous year. Significant development was also seen in the production of coal from captive and other companies, which increased to 16.59 MT in October 2024 from 11.70 MT in the same time the previous year, representing an astounding 41.75 percent growth rate. The total amount of coal produced during the fiscal year in October 2024 was 537.45 MT, up 6.10 percent from 506.56 MT during the same period in FY 2023-24.
Moreover, coal dispatches increased significantly in October 2024, hitting a remarkable 82.89 MT, a 4.60 percent rise over the 79.25 MT in October 2023. Additionally, coal dispatch from captive and other entities increased by 36.83 percent from 11.83 MT in October 2023 to 16.18 MT in October 2024. The total amount of coal dispatched up to October 2024 increased by 5.52 percent to 571.39 MT in FY 2024-25 from 541.51 MT in FY 2023-24.
Source: Ministry of Coal
For the 2008–09 to 2013–14 timeframe, the coal output CAGR was 2.8 percent. If this pattern had continued, just 725.39 MT of coal would have been produced in 2022–2023. Because of the government's consistent proactive efforts, production has increased at a 5.20 percent CAGR, peaking at 893.19 MT in 2022–2023. This 167.80 MT increase in production (savings of approximately ₹2.71 Lakh Crore) has contributed to a decrease in the import of coal.
Recently, the Ministry of Coal launched the Mine Opening Permission module on the Single Window Clearance System (SWCS) portal. On November 7, 2024, Shri Vikram Dev Dutt, Secretary, Ministry of Coal, formally unveiled the new module. The goal of this ground-breaking project is to expedite and streamline the coal mine opening approval procedure.
The module decreases processing time, increases efficiency, and improves transparency by utilising digital technologies. This action greatly facilitates commercial dealings, fosters an atmosphere that is more conducive to investment, and facilitates quicker approvals. In addition to bolstering India's energy security and advancing the country's goal of self-reliance and sustainable development, this new module will spur expansion in the coal industry.
The government has taken several steps in order to reduce imports and maintain a constant supply of coal in the country. Some of the steps are- Regular reviews by Ministry of Coal to expedite the development of coal blocks, Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines, Project Monitoring Unit for handholding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines. Apart from this the Ministry of Coal has requested the Ministry of Environment, Forest and Climate Change (MoEF&CC) to allow coal mines with existing Environmental Clearances to increase their production up to 40 percent, to hike by up to 50 percent without Fresh Environmental Impact Assessment or Public Consultation. Talking about the import of coal, according to the current import policy, consumers themselves may freely import coal (under Open General Licence) based on their own needs and commercial discretion.
Source: Ministry of Coal
The production of coal has increased significantly from 565.77 MT in 2013-14 to 997.26 MT in 2023-24. For the fiscal year 2024-25, the Ministry has set an ambitious coal production target of 1,080 MT. NITI Aayog in a draft report estimated that India’s coal demand will increase to 1.1-1.3 billion tons by 2030. Coal India is expected to produce one billion tons by 2025-26. Exploring and utilising the alternate sources of electricity generation is extremely important for the country as India faced massive power outages and crisis in the previous year.
Speaking at Coal India Limited (CIL’s) 50th foundation day on Sunday, November 3, 2024, Union minister of Coal and Mines, G. Kishan Reddy said State-owned CIL's priorities should be to ramp up production of coal and scale up supplies to reduce imports. Coal India Ltd (CIL) accounts for over 80 percent of domestic coal output. While coal will remain a central component of the country's energy landscape for the coming decades, India is also heavily investing in renewable energy and addressing climate change, the coal minister explained.
The government has taken several steps to accelerate the Indian economy’s transition to one powered by green energy. The major schemes include National Green Hydrogen Mission, Production Linked Incentive (PLI) Scheme for solar modules, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) I & II and PM Surya Ghar Muft Bijli Yojana. India's goal for green energy transition by 2030 is to achieve 500 gigawatts (GW) of non-fossil fuel installed capacity, which includes 280 GW of solar power and 140 GW of wind power projects. This is a crucial step towards achieving sustainable energy independence.
The Ministry of Coal's ongoing efforts to increase coal output and ensure smooth delivery are a testament to India's commitment to satisfying its energy needs and promoting ongoing economic progress. The sincere efforts taken by the government towards ensuring adequate supply of coal in the country shows that the government can comfortably achieve the target of producing 2 billion tonnes of coal by 2030.
