India Achieves Record Coal Production with Significant Growth in FY 2023-24

India has produced a record 997.826 MT of coal in the new fiscal FY 2023-24, up by 11.71% from 893.191 MT produced last fiscal FY 978-23. Coal production in the financial year 2024 up to December 15 stand at 988.32 MT up by 7.66% compared to the previous year.

India has declared coal as a main energy source with a contribution of more than 70% to total electricity generation. India stands second in coal production and consumption in the world and has the largest coal fields in Jharkhand, Orissa, Chattisgarh & West Bengal, etc. Commercial production of coal and launching programs such as the Integrated Coal Logistics Plan and Mission Coking Coal intend to improve domestic production while aiming at feasible environment-friendly practices. Nevertheless, whether it is input costs like the environment, emissions, and the need to start exploring cleaner energy options, the issue is still the center.

Key Points

Record Coal Production:

• India’s produced 997.826 MT coal in FY 2023-24, the highest of all time which up from 893.191 MT in FY 2022-23 with the growth rate of 11.71%.

• Crude coal output in the calendar year 2024 up to December 15 Stand at 988.32 MT, a YoY growth of 7.66%.

Targets and Initiatives:

• The government has set a vision of achieving a Coal production of 1.5BT by FY 2030 under the Integrated Coal Logistics Plan.

• As per the “Mission Coking Coal”, the production target of raw coking coal at home is 140 MT by 2030, of which 66.821 MT has been produced in the FY 2023-24 which set a target of 77 MT for the FY 2024-25.

Modernization and Reforms:

• The washing plants are being upgraded in the ageing washeries under Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL).

• 14 coking coal blocks are planned to be offered to private players hence the expected production would begin in the 2028-29.

Coal and its type:

Coal is a black or brownish black sedimentary rock formed mainly of carbon however additional and in some situations predominant elements are hydrogen, sulfur, oxygen and nitrogen.

Types of coal

• Anthracite: This has the highest rank, low moisture content and high carbon and burning optimally for high efficiency power output.

• Bituminous: Most common, high energy content, mostly utilized in both power plant stations and steel industries.

• Lignite: The lowest class, with high moisture content, generally employed in the generation of electricity.

Distribution in India

• Major Coalfields: Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh and Telangana.

• Top Producing States: These are the states of Jharkhand, Odisha, Chhattisgarh, as well as Telangana.

Importance of Coal

• Energy Security: Enhances general reliability of electric power supply in India.

• Industrial Use: Primary feed material for the production of steel and cement industries.

• Employment: Offers a very big course to employment in coal mining areas.

Challenges

• Environmental Concerns: This has since been seen to contribute to deforestation and land degradation as well as air pollution.

• Greenhouse Gas Emissions: Largest cause of global warming for releasing carbon dioxide in the environment.

• Over-dependence: As strongly observed, this has implications for diversification of India’s energy mix.

Other government Initiatives

1. Mission Coking Coal 

• Mission Coking Coal that was initiated under Atmanirbhar Bharat seeks to increase indigenous raw coking coal output to cut imports. 

• The aim is to attain 140 MT by the end of the FY 2030 with the measures to update the conventional washeries, converting the existing facility to generating revenues, and boosting domestic coal sale through auction. 

• Combined, all these proposals have made an estimate that production from CIL subsidiaries will be as high as 105 MT in FY 2029-30 compared with this year’s 60.43 MT in FY 2023-24. 

• Besides, the Indian government has auctioned 14 coking coal blocks to private players for captive use they will soon start production by 2028-29.

2. Web-Based National Coal Mines Safety Report Portal

• The National Coal Mines Safety Report Portal was launched by Ministry of Coal on 17th December, 2024 to improve India’s coal mining industry. 

• While the commercial mining along with captive use by the power generation sector and iron & steel industries has increased, high safety standards have become imperative. With regards to the inquiries, the portal enables the uploading of safety data and actions on the same depending the recommendations. 

• Some of them are such as the Accident Module for reporting and managing incidents that occur in an organization immediately as well as the Safety Audit Module for improving on the measures in force. It also fosters the development of a successful model of safety culture, supervision, and safety improvements to coal mining

3. Measures under PM Gati Shakti

• The Pradhan Mantri Gati Shakti National Master Plan (PMGS-NMP) was launched in October 2021 for which all infrastructure projects should be integrated. 

• The Ministry of Coal harnesses the PMGS-NMP portal for scrutinizing project papers and promotion of the coal. There are further attempts to map cleaner evacuation of coal especially by rail mode and minimize the movement by road transport.

Conclusion

India’s coal sector has seen promising growth over recent years and has set new production records and brought comprehensive changes for rational, safe, and sustainable output. Having high goals and gradual reforms and modernizations in the energy sector, the country is set to boost its coal production and meet energy demands, increasing transparency and employment.