Coal production in India has hit a historic high, with the country reaching 988.32 million tonnes (MT) of coal production in 2024, a growth of 7.66% compared to last year’s 918.02 MT. The Ministry of Coal has hailed this achievement as a significant milestone in the country’s mining sector, and it is expected that this year’s production will surpass last year’s 997 MT by the end of the financial year 2024-25 (FY25). This record is attributed to the combined efforts of Coal India Limited (CIL) and private mines, which have ramped up their production in recent months.
Coal Production From Captive and Commercial Mines in 2024
Coal production from captive and commercial mines has contributed a significant 162 MT between January and November of 2024, as reported by the Ministry of Coal. This surge comes as India has auctioned 113 coal mines since 2015, with a peak-rated capacity of 257 MT annually. The opening up of the sector to private players has led to an increase in both production and efficiency. The government’s aim of reducing dependence on imported coal and boosting domestic production has led to this record output.
In line with the government’s mission to enhance energy security, it has set ambitious coal production targets. By FY25, the coal ministry expects to reach 1.31 billion tonnes (BT), and by 2029-30, it aims to hit 1.5 BT annually. These targets are in line with the broader goal of Atmanirbhar Bharat, which seeks to reduce reliance on imported energy sources and strengthen India’s energy security.
Private Mines and CIL Driving Record Output
Private mines, along with Coal India Limited, have been at the forefront of this record-breaking output. The increased output from these sectors is expected to help achieve the target of surpassing the 997 MT mark in FY25. With increased participation from private sector players, the competition and efficiency in coal production have significantly improved, directly contributing to the surge in output.
The ministry has emphasized that these efforts align with reducing India’s coal imports, particularly focusing on coal for power plants. However, despite these efforts, the power ministry continues to mandate certain levels of coal imports for the country’s power sector. This shows a balancing act between increasing domestic production and meeting immediate supply requirements.
Mission Coking Coal and Reforms to Reduce Imports
Alongside the focus on general coal production, the coal ministry has launched Mission Coking Coal to further reduce the country’s reliance on imported coal. Coking coal is primarily used in steel production, and the demand from the steel sector is expected to increase. By FY30, the ministry aims to boost domestic raw coking coal production to 140 MT. Coal India subsidiaries are tasked with raising their production to 105 MT by FY30, up from 60.43 MT in 2023-24.
In addition to this, the government is also preparing for Coal Reforms 3.0. These reforms will focus on unlocking domestic coking coal production by auctioning coal through two routes—one for steel units with washeries and one for those without. This initiative is part of a broader push to enhance coal availability for industrial sectors, including steel production, by improving domestic supply chains.
Increased Supply to Power and Non-Regulated Sectors
For the calendar year 2024 (up to December 15), India supplied about 963.11 MT of coal, up from 904.61 MT during the same period in 2023, marking a growth of 6.7%. A significant portion of this coal was supplied to the power sector, with 792.96 MT sent for power generation, reflecting a 5.02% increase compared to the previous year. Additionally, the non-regulated sector saw a 14.48% rise, receiving 171.24 MT of coal. This indicates a healthy increase in coal availability across various sectors, including industrial and non-regulated industries.
The continued growth in coal production and supply demonstrates India’s strides toward energy independence and meeting the growing demand for coal, both domestically and across various industrial sectors.