India’s Coal Demand Surges Over 20% In 3 Years, Nears 1.24 Bn Tonnes

New Delhi, Feb 24 (KNN) India's coal demand has experienced substantial growth over the past three years, increasing by more than 20 percent from 1,027.22 million tonnes in 2021-22 to 1,237.54 million tonnes in 2023-24, according to recent data from the Ministry of Coal and Mines. 

The current fiscal year 2024-25 has already recorded 786.64 million tonnes of coal demand through November 2024, representing 63.5 percent of the previous year's total consumption.

Domestic coal production has demonstrated steady improvement, rising from 819.21 million tonnes in 2021-22 to 973.01 million tonnes in 2023-24, marking an 18.8 percent increase over three years. 

The current fiscal year's domestic supply has reached 657.12 million tonnes by November, indicating potential record-breaking production by year-end. 

This growth has positively impacted the domestic supply mix, with the share of domestic coal increasing from 79.7 percent in 2021-22 to 83.6 percent in the current fiscal year.

Despite improvements in domestic production, import dependency remains a significant concern. Coal imports increased from 208.63 million tonnes in 2021-22 to 264.53 million tonnes in 2023-24. 

However, current fiscal year data suggests a potential shift, with imports through November 2024 at 129.52 million tonnes, representing less than 50 percent of the previous year's total.

The government has outlined ambitious production targets for the next five years, aiming to increase total output from 1,080 million tonnes in 2024-25 to 1,533.04 million tonnes by 2029-30. 

Coal India Limited (CIL) is expected to remain the dominant producer, with targets rising from 838 million tonnes to 1,131 million tonnes during this period. 

Notably, captive mining and other sources are projected to show significant growth, with targets nearly doubling from 170 million tonnes to 320.04 million tonnes.

To address import dependency and boost domestic production, the government has implemented several initiatives, including establishing an Inter-Ministerial Committee for coal import substitution and developing an Import Data System. 

Additional measures include Single Window Clearance, amendments to mining regulations allowing increased sales from captive mines, and permission for 100 percent Foreign Direct Investment in commercial mining. 

These efforts align with India's broader strategy to balance its position as the world's fifth-largest coal reserve holder and second-largest consumer while working toward its renewable energy commitments.

(KNN Bureau)