India's coal production surpasses 1 billion tonnes, alleviating import reliance

---

---

After persistent efforts by the government, India's coal and lignite production has achieved a significant milestone. The culmination of the endeavours was realized last Friday, as the nation reached a remarkable feat: the production of 1 billion tonnes. The achievement signals a momentous stride forward in India's energy landscape.

“Mission 1 billion tonne was a milestone we had put in action a few years ago considering the burgeoning electricity requirements of our nation. This is a historic milestone in India’s quest for energy security under the leadership of Prime Minister Narendra Modi. The achievement of 1 billion tonnes in coal and lignite production will ensure the lights are on in citizens’ houses even as the coal sector continues to power up the economy,” terming the achievement as a historic one, Coal Minister Prahlad Joshi said. 

The coal ministry stated that the substantial coal reserve guaranteed a continuous power supply throughout the country, which was essential for sustaining economic activities and meeting the rising electricity demand, particularly during peak consumption times.

The currnt coal inventory of the country, which stands at 95 million tonnes, is likely to go up to 160 million tonnes by 31 March.

The historic milestone augurs well for power stations that need to brace up for the burgeoning demands in peak summer over the next two to three months. Power stations need a fresh supply of coal and it could be met domestically this time. Moreover, India can reduce its dependency on imported coal and save substantially on foreign exchange reserves.

Due to increased domestic production, the proportion of imported coal utilized in power plants decreased to 21% from almost 22.5% during the period spanning from April 2023 to January 2024, compared to the preceding corresponding period.

In its report released in December 2023, the International Energy Agency (IEA) projected that India, representing 14% of global demand, is anticipated to experience a yearly increase of 3.5% until 2026, reaching a peak of 1,397 million metric tons (mt). The IEA forecasts a modest rise in coal usage for power generation, reaching a total of 1,006 mt by 2026, marking an additional 69 mt.

Thanks to a combination of China's energy insecurity, which has compelled Beijing to revert to reliable power sources, and rising Indian demand, coal is proving to be remarkably resilient, experts feel.   

Image courtsey: Ministry of Coal 

Kindly follow us on: 

LinkedIn

X