Overall Coal Production likely to cross One Billion tonne- Minister Pralhad Joshi

Newdelhi:21/12/23:Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi said that by 2025 coal import for power sector will come down to 2 percent since domestic coal production has increased substantially. Addressing the launch function of the 9th round of commercial coal mine auction here yesterday, Shri Joshi complemented Coal India Ltd and subsidiary companies for the record performance to attain self-sufficiency in coal production and off-take. The Minister further stated that this year overall coal production is very likely to cross one billion tonnes. India’s coal sector is constantly contributing to energy security of the nation and thereby further fillip to our fast-growing economy, the Minister added.

Highlighting the sustainable coal mining practices that India is following, Shri Joshi said that the country has emerged as a global leader in containing emissions. He pointed out that a Rs. 6000 crore incentive has been given for coal gasification. In order to further  strengthen sustainable mining, coal PSUs have planted 100 million saplings in recent years, the Minister said.

A total of 31 coal mines, including 26 under the 9th round and 5 under the 2nd attempt of the 7th round, are offered in the 9th round of commercial coal mine auctions. The mines being auctioned are spread across coal/lignite-bearing states of Jharkhand, Chhattisgarh, Madhya Pradesh, and Telangana.

India has a total coal reserve of 344.02 billion tonnes and is the second-largest producer of coal in the world. India has seen a consistent increase in the demand for electricity over the years. Given that 72% of the electricity in India is generated from coal, it has become a very strategic sector for the nation’s development.

Commercial coal mining is expected to bring new investments to the country and generate employment, both direct and indirect. The entire revenue from the auctions would be allocated to the coal-bearing State Governments, bringing socio-economic benefits to the coal-bearing States of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Arunachal Pradesh, Bihar, and Assam.

Coal mining from the auctioned mines to date is estimated to bring an annual revenue of Rs. ~33,343 crore, considering production at an aggregated Peak Rate Capacity level of ~220.90 MTPA. Once these mines are fully operational, they will generate employment for around three lakh persons directly and indirectly, and a total investment of more than Rs. 30,000 crore will be expended to operationalize these coal mines. The Minister also gave away Star Rating Awards to exceptionally performing coal and lignite mines and distributed certificates to coal CPSEs in different categories as part of Special Campaign 3.0, aimed at institutionalizing cleanliness and minimizing pendency.