Reducing Coal Imports, Boosting Domestic Production Key Focus: Minister

(MENAFN- IANS) New Delhi, Feb 8 (IANS) The government has reiterated that reducing coal imports and increasing domestic production is the key focus, as the coal sector remains a cornerstone of India's energy security, playing a vital role in the country's industrial and economic growth.

With the fifth-largest geological coal reserves globally and as the second-largest consumer, coal continues to be an indispensable energy source, contributing to 55 per cent of the national energy mix.

Approximately 74 per cent of power generation in India relies on thermal power plants (TPPs), reaffirming the need for a robust and sustainable coal sector, said Union Minister of Coal and Mines, G Kishan Reddy.

“The coal ministry is progressing in the path of achieving 'Atmanirbharta' in the sector,” the minister added.

The efforts has significantly reduced reliance on imported coal. Between April and November 2024, coal imports declined by 5.35 per cent, saving approximately $3.91 billion (Rs 30,007.26 crore). Notably, coal imports for domestic power plant blending fell by 23.56 per cent.

The Ministry's 'Mission Coking Coal' aims to increase domestic coking coal production to 140 MT by FY 2029-30, thereby reducing dependency on imports in the steel sector.

India's coal production has reached an all-time high of 997.82 million tonnes (MT) in FY 2023-24, marking a significant rise from 609.18 MT in FY 2014-15, with a Compound Annual Growth Rate (CAGR) of 5.64 per cent over the past decade.

In FY 2023-24 alone, production has surged by 11.71 per cent compared to the previous year.

As of January, the Ministry of Coal has allotted 184 mines, with 65 blocks receiving Mine Opening Permissions.

Total production from these blocks has reached 136.59 MT, registering a 34.20 per cent year-on-year increase. This is expected to exceed 170 MT target in FY 2024-25.

Among the eight core industries, coal has exhibited the highest growth rate, recording a 5.3 per cent increase in December 2024 compared to the previous year.

Additionally, the coal sector accounts for about 50 per cent of freight revenue for Indian Railways and provides direct employment to nearly 4.78 lakh individuals, said the ministry.

-IANS

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