Coal India mines including private entities recorded coal output of 988 mt in 2024

Coal production for this financial year reached 988.32 million tonnes (mt), an increase from 918.02 mt during the same period last year, representing a growth of approximately 7.66 percent, according to the coal ministry's year-end report. This marks a new record in coal production. The ministry anticipates that coal production will surpass last financial year's total of 997 mt by the end of 2024-25 (FY25).

This increase is expected to be driven by higher output from privately owned mines and improved supply from Coal India (CIL) mines. Between January and November 2024, coal production from both captive and commercial mines totaled 162 mt. Since 2015, 113 coal mines with a peak rated capacity of 257 mt per annum have been auctioned.

The ministry stated that opening the sector to private participation aligns with the goals of reducing coal imports and promoting domestic production.

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“To strengthen India’s energy security and realize 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 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.

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As reported earlier, the Centre is preparing to launch Coal Reforms 3.0 to reduce overall coal imports and increase coal availability for industrial sectors. The coal ministry plans to unlock domestic 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 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.

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