India Achieves Record Coal Production in FY 2023-24

India reached its highest-ever coal production of 997.826 million tonnes (MT) in the financial year 2023-24, marking a significant 11.71% growth compared to the 893.191 MT produced in 2022-23. The Ministry of Coal announced this milestone as part of its broader efforts to ensure energy security and meet growing demand.

Under the Integrated Coal Logistics Plan, the government has set an ambitious target of producing 1.5 billion tonnes (BT) of coal by FY 2030. As of December 15, 2024, coal production had already reached a provisional figure of 988.32 MT, reflecting a year-on-year growth of 7.66%.

Coal supplies also showed significant growth, with a total of 963.11 MT provisionally supplied by mid-December, a 6.47% increase over the previous year. The power sector received 792.958 MT, a 5.02% rise, while the Non-Regulated Sector (NRS) recorded a 14.48% growth with 171.236 MT supplied.

Boosting Domestic Coking Coal Production

The Ministry's "Mission Coking Coal" aims to achieve a domestic raw coking coal production target of 140 MT by 2030. For FY 2023-24, production stood at 66.821 MT, with a target of 77 MT set for FY 2024-25. Key measures include modernizing washeries under Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL), monetizing old washeries to improve efficiency, and auctioning 14 coking coal blocks to private players, with production expected to commence by 2028-29.

Reforms and Innovations

The Ministry implemented several reforms in 2024 to enhance efficiency and transparency. The VIIth tranche of the NRS e-auction booked 17.84 MT of coal, while four tranches under the SHAKTI B(VIII-A) policy facilitated the auction of 23.98 MT of coal. A revised pricing mechanism for coal gasification projects was also introduced, with the ROM price for regulated sectors now applicable to projects commissioning within seven years.

Technological advancements have been prioritized, with the launch of the Mine Closure Portal to oversee closure activities and the National Coal Mines Safety Report Portal to strengthen safety practices and reduce accidents. These initiatives aim to foster a "Culture of Mine Safety" across the sector.

Land Acquisition and Workforce Expansion

Between January 1 and December 18, 2024, 16,838.34 acres of land were acquired for Coal India Limited subsidiaries under the Coal Bearing Areas (Acquisition and Development) Act, 1957. Additionally, land data covering over 257,000 hectares has been uploaded to the PM GatiShakti Portal to streamline development processes.

The coal sector also focused on job creation, with 13,341 appointment letters issued in 2024 for various posts under Coal India Limited (CIL) and NLC India Limited (NLCIL). This underscores the industry's commitment to bolstering employment and building a skilled workforce to support its growth trajectory.

A Transformative Decade for India’s Coal Sector

India’s coal industry is on a transformative path, driven by robust production targets, innovative reforms, and a focus on sustainability. With plans to modernize infrastructure, enhance safety measures, and expand job opportunities, the sector is well-positioned to meet the country’s energy demands and contribute to economic growth in the coming years.