How coal sector fared in 2023? Here is a look back

The domestic coal-based power generation increased 8.38 per cent to 779.1 Billion Units (BU) in April-November FY24, according to an official statement released on Saturday by the coal ministry.

The country’s domestic coal-based power generation totalled 718.83 BU, during the corresponding period last year. According to the statement, the country experienced a 7.71 per cent uptick in power generation for the specified period. This increase can be attributed to a notable 11.19 per cent year-on-year rise in coal-based power generation. Factors contributing to this growth include elevated temperatures, delayed monsoons in Northern India, and the full resumption of commercial activities following the COVID-19 pandemic.

In a significant shift towards self-sufficiency, coal imports intended for blending purposes saw a sharp decline of 44.28 per cent, dropping to 15.16 million tonnes (MT) up to November in the current fiscal year from 27.21 MT during the same timeframe last year. The ministry highlighted this reduction as a testament to India's dedication to boosting domestic coal production and curtailing reliance on overseas coal sources.

The government continues to emphasise initiatives aimed at bolstering coal production further. The objective remains to augment availability domestically and diminish the country's dependence on imported coal, thereby reinforcing its foreign reserves.

Target for 2024

Domestic coal production is very likely to cross one billion tonnes in 2023-2024, the Ministry of Coal said on Friday. As per the latest government statistics, coal production touched 664.37 million tonnes during FY 2023-24 up to December 25.

According to the govt data, with 8.39 per cent growth, coal dispatch to the power sector during this period also touched 577.11 million tonnes. With the current rate of growth and production, the sector is poised to fulfill the targets set by the government. With the current growth, India’s coal sector aligns well with the vision of Atmanirbhar Bharat and contributes considerably to the nation's progress towards self-sufficiency and energy security.

The release added further that because of consistent efforts by the Ministry of Coal in tandem with other ministries also ensured enhanced rake availability for seamless transportation of coal during 2023. “During the year,  the Ministry has ensured adequate availability of quality coal to Thermal Power Plants and other crucial sectors of the economy, giving further fillip to the success saga of India’s economic growth,” a govt release stated. 

The noteworthy achievements of the ministry during 2023 are also marked by several reforms/policy measures centered around further enhancing overall coal production and supply, special focus on environment-friendly Underground Coal production, curtailing import to the very minimum, coal gasification projects, successful commercial coal mine auction and sustainable mining practices.