India’s Coal and Lignite Production hits all-time high of over 1 Billion Tonnes for FY 2023-24

Posted 03 Apr 2024

2 min read

Union Minister of Coal has informed that coal and lignite production has grown by more than 70% over last 10 years owing to favourable government support.

Significance of the achievement: Energy security, saving on India’s Forex reserves, achieving target to replace import of coal for power generation by 2025-26, etc.

Current Status of Coal Sector in India
- India has 5^th largest geological reserves of coal and is 2^nd largest consumer of coal across the world.
- Production: Coal India Limited (CIL) is the largest producer (>70%) of coal in India.
- Import: India imported 217.75 million tonnes coal in FY 2023-24 (till Jan 2024), dominated by non-coking coal (~77% of total imports)

Coal Mines Special Provisions Act, 2015: To ensure transparent auction process.
Mines and Minerals (Development and Regulation) Amendment Act, 2021: Allowed composite Prospecting Licence-cum-Mining Lease (PL-cum-ML).
Ending captive mining regime: Facilitated commercial mining and sale of excess production.
Single Window Clearances: To streamline and speed-up operationalization of coal mines.

Challenges of coal sector in India
- Un-seasonal and extended rainfall in the coal bearing areas.
- Non-payment of outstanding dues by Power sector consumers.
- Frequent labour/ Industrial relations issues in the coal fields.
- Land acquisition and environmental challenges.
- Lower coal quality with presence of high ash and sulphur content.
- Technological obsolescence in mining techniques resulting in lower productivity, higher costs, and safety hazards.

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