India Advances Toward Coal Self-Reliance, Cuts Imports By USD 3.91 Bn: Union Minister G Kishan Reddy

(MENAFN- KNN India) New Delhi, Feb 8 (KNN) Union Minister of coal and Mines, G Kishan Reddy, announced substantial progress in India's journey toward coal sector self-reliance during a press conference in New Delhi.

The Ministry reported a notable 5.35 percent reduction in coal imports between April and November 2024, resulting in savings of approximately USD 3.91 billion (Rs 30,007.26 crore), with imports for domestic power plant blending specifically declining by 23.56 percent.

India's coal production reached unprecedented levels in fiscal year 2023-24, achieving 997.82 million tonnes (MT), marking a significant increase from 609.18 MT in FY 2014-15.

This growth represents a compound annual growth rate of 5.64 percent over the past decade, with production surging by 11.71 percent in FY 2023-24 compared to the previous year.

The coal sector has emerged as the strongest performer among core industries, recording a 5.3 percent growth in December 2024.

The Ministry's commercial coal mine auction policy, introduced in 2020, has yielded substantial results, with 184 mines allocated and 65 blocks receiving Mine Opening Permissions.

Production from these blocks has reached 136.59 MT, showing a 34.20 percent year-on-year increase, with expectations to exceed the 170 MT target in FY 2024-25.

The sector continues to be a significant contributor to national infrastructure, accounting for approximately 50 percent of Indian Railways' freight revenue and providing direct employment to 4.78 lakh individuals.

Under the Ministry's 'Mission Coking Coal' initiative, domestic coking coal production is targeted to reach 140 MT by FY 2029-30, aiming to reduce import dependency in the steel sector.

The government has also approved an Rs 8,500 crore incentive scheme to support coal gasification projects, targeting 100 MT capacity by 2030.

Additionally, the Ministry has implemented the First Mile Connectivity initiative, commissioning 39 projects with a total capacity of 386 MTPA, while doubling Rail-Sea-Rail coal movement from 28 MT to 54 MT between FY 2022 and FY 2024.

The Ministry's commitment to environmental sustainability is evident through its extensive afforestation efforts, including the plantation of over 54.06 lakh saplings across 2,372 hectares in 2024.

The 'Ek Ped Maa Ke Naam' campaign has contributed to this green initiative with over 1 million saplings planted across 11 states.

Furthermore, the sector has provided treated mine water to more than 18.63 lakh people in 1,055 villages over the past five years, demonstrating its dedication to community welfare alongside industrial development.

(KNN Bureau)

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