Coal Production Jumps 11.7% To Record High, Reports Union Minister

India’s coal production has surged by an impressive 11.7% to reach a record 997.83 million tonnes for the financial year ending March 31, 2024, according to G Kishan Reddy, the Minister of Coal and Mines. This significant increase underscores the government’s commitment to boosting domestic coal output and reducing reliance on imports.

The minister highlighted that coal production has consistently grown over the past four years, up from 730.9 million tonnes in 2019-20. This upward trend has continued into the current financial year, with a notable 10.75% rise in the first quarter (April-June), reaching 247.396 million tonnes.

To facilitate this growth, the government has implemented several measures, including a single-window clearance portal designed to expedite the operationalization of coal mines. Additionally, reforms introduced in 2020 include a commercial mining auction based on revenue-sharing principles. This scheme offers a 50% rebate on the final bid for coal produced before the scheduled date.

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Incentives for coal gasification and liquefaction, including a 50% rebate on the final offer, have also been introduced. Moreover, the liberalization of commercial coal mining terms—such as removing restrictions on coal usage—has encouraged new participants in the bidding process.

Coal companies, including the leading producer Coal India Ltd, have adopted advanced technologies and mass production techniques to further increase output. This includes the use of state-of-the-art equipment like high-capacity excavators, dumpers, and surface miners, as well as plans to develop large-capacity underground mines where feasible.