Context
India finished a historic milestone as it crossed a billion tonnes (BT) of coal manufacturing in March in 2024-25, surpassing last financial year’s 997.83 million tonnes (MT).
Key Highlights
- India, with the 5th-largest coal reserves and being the second one-biggest customer, heavily depends on coal.
- Coal contributes 55% to the energy blend and powers over 74% of energy technology in India.
Growth in Coal Production and Dispatch
- India’s coal manufacturing has reached 1047.57 MT (Provisional) in FY 2024-25.
- Coal manufacturing refers to the extraction of coal from mines.
- Coal dispatch has also crossed the One BT milestone, with overall dispatch achieving 1024.99 MT (Provisional).
- Coal dispatch refers back to the system of transporting and dispensing that coal to numerous customers, along with power plants and business facilities.
- Coal imports fell 8.4% to 183.42 MT in April-December 2024 in the same period of FY 2023-24, saving $5.43 billion in foreign trade.
Government initiatives
- Commercial Coal Mining opened the world to personal gamers to enhance production, performance, and competitiveness.
- Mission Coking Coal targets to lessen import dependence by improving domestic coking coal availability.
- Safety measures: Directorate General of Mines Safety made over the Coal Mines Regulations 1957 into The Coal Mines Regulations 2017, addressing modernisation, mechanisation, emergency response, and evacuation planning.
- Coal Mitra Portal evolved for bendy coal allocation to power plant, ensuring higher coal supply control.
Economic significance of the coal sector
- Railways & sales: Coal stands as the single largest contributor to railway freight, with an average share of almost 49% of overall freight income amounting to Rs. 82,275 Crore in the fiscal year 2022-23.
- Government earnings: The coal area contributes over Rs. 70,000 Crore annually to the imperative and nation governments through royalties, GST, and other levies.
- Employment: The sector affords jobs to over 239,000 workers in Coal India Ltd and lots more in contractual and transport roles.
Coal gasification initiative
- Coal gasification converts coal into syngas, which can be used for generating methanol, ammonium nitrate, Synthetic Natural Gas (SNG), and fertilisers.
- The Government has undertaken the following coal gasification initiatives:
- Financial incentive: The Government authorised ₹eight,500 crore for promoting coal/lignite gasification projects for PSUs and the private sector.
- Revenue proportion rebate: A 50% rebate in revenue proportion for coal utilized in gasification has been added in business coal block auctions, supplied at least 10% of the entire coal manufacturing is used for gasification.
Conclusion
- The coal sector remains valuable to India’s energy and economic dreams. Rising production, easy coal initiatives, and tech-pushed security and sustainability efforts reflect its evolving role.
- With strong government aid and workforce dedication, the world is about to force India’s adventure toward self-reliance and development by 2047.
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