India’s energy requirements are substantially satisfied through coal production. India uses a lot of coal to run its factories, make electricity, and in other important fields. It is the third-biggest energy user in the world. According to the Ministry of Coal, India made a record 893.08 million tones of coal in 2023–24. This rise from one year to the next is 11.66%, showing how quickly the field is growing. India still needs a lot of coal for its infrastructure and economic growth, both at home and when it moves goods between countries.

An Analysis of Coal Production in India

India is the second-largest producer of coal in the world, following China. India has a lot of coal, mostly in the states of Jharkhand, Odisha, Chhattisgarh, West Bengal, and Madhya Pradesh. Over 80% of Coal production in India comes from public sector companies, mostly Coal India Limited (CIL).

In FY 2023–24:

• Coal India Limited (CIL) produced over 703.91 million tonnes of coal.

• Singareni Collieries Company Limited (SCCL) and captive mines also recorded significant growth.

• India aims to reach 1 billion tonnes of coal production by 2025 to minimize dependency on imports.

In order to achieve energy independence, minimize the country’s impact on the environment, and keep up with growing domestic demand, the Indian government has decided to increase coal output.

Key Statistics: Coal Production in India

Why India Still Imports Coal

Coal imports continue to be substantial in India, despite the country’s great local output of the commodity. Because of the following factors.

• The availability of high-quality coal with a low ash level is frequently unavailable inside the United States, which is a problem for some businesses.

• There are bottlenecks in the supply chain occurring in domestic transportation and distribution.

• The demand from power plants and industrial customers has increased.

India imported around 247 million tonnes of coal in the year 2023 on its own. Despite the fact that this was a slight drop in comparison to the previous years, it is still a significant component of India’s food and energy supply chain. The United States of America, Indonesia, Australia, and South Africa are the primary sources of coal that India imports.

The reliance on coal imports in India is expected to decrease gradually as domestic output rises and infrastructure improves. 

The International Position of Coal Production in India 

When discussing the largest producer of coal in the world, China holds the top position, producing over 4 billion tonnes annually. However, India has secured the second spot globally and continues to expand.

These efforts aim to reduce environmental impact and increase transparency in the sector. While not the largest producer of coal in the world, India’s ongoing growth may narrow the gap with China in the future.

Key facts:

• Coal production in India has grown by more than 70% over the last decade.
• India’s share in international coal production is around 10%.
• The government is actively investing in mining technology, digital coal auctions, and logistics improvements.

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Concerning the Environment and Policy

India is also investing in clean coal technology, underground mining, and diversification to renewable sources in response to an increasing amount of demand from across worldwide for lowering carbon emissions. Nevertheless, coal continues to be the foundation of India’s energy policy due to the fact that it is affordable and readily available. 

Recent policy changes:

India wants to make its coal production more efficient by taking these steps to update its processes. 

• Commercial coal mining opened to the private sector.
• Introduction of the National Coal Index.
• Increased FDI is allowed in the coal sector.

One of India’s objectives for the future is to increase the use of machines, lower the cost of transportation, and do more deep mining so that there is less damage to the surface. Companies such as CIL are already bringing new technologies to the market, like digital twins and mining systems driven by AI.

India will not have to buy as much coal in the future because the quality and grade of coal found in India will be improved. It will be very important to use cleaner tools and handle resources better.

By continuing on its current path, India could become the second-largest coal producer in the world, after China. This would make it an important factor in the international energy market.

Wrapping It Up

A big part of India’s economic growth and energy security is still its coal production. As India’s infrastructure grows and the need for energy rises, the coal industry is changing to meet the needs of today. The country is on track to become the biggest coal producer in the world by reducing the amount of coal it imports and promoting innovation, sustainability, and policy change.

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