The Indian government has reaffirmed its commitment to reducing coal imports and ramping up domestic production, positioning coal as a cornerstone of the country’s energy security and economic growth.
Union minister of coal and mines, G Kishan Reddy, highlighted that coal contributes to 55% of India’s energy mix, with 74% of power generation relying on thermal power plants (TPPs).
“The coal ministry is progressing towards ‘Atmanirbharta’ in the sector,” Reddy stated, pointing to a 5.35% drop in coal imports between April and November 2024, saving India approximately $3.91 billion (Rs 30,007.26 cr). Imports for domestic power plant blending also fell by 23.56%.
Under ‘Mission Coking Coal,’ the government aims to boost domestic coking coal output to 140 MT by FY 2029-30 to reduce reliance on steel sector imports.
India’s coal production hit a record 997.82 MT in FY 2023-24, marking a significant rise from 609.18 MT in FY 2014-15, with an 11.71% year-on-year surge. The sector has also contributed to a 5.3% growth in India’s core industries as of December 2024.
The Ministry of Coal has allocated 184 mines, with 65 receiving Mine Opening Permissions. Production from these blocks has reached 136.59 MT, a 34.20% rise year-on-year, and is expected to surpass 170 MT in FY 2024-25.
The coal sector remains a crucial contributor to Indian Railways’ freight revenue and directly employs nearly 4.78 lakh individuals, the ministry added.