Domestic Coal Production Expected To Grow 7 Per Cent Annually: Centre

According to Central Electricity Authority, the actual electricity generation from coal-based power plants during the last three years and in the current year has increased.

New Delhi: Union Coal Minister G Kishan Reddy apprised the parliament on Monday that domestic coal production is expected to grow by seven per cent in the next two years to reach about 1.5 billion tonnes by 2030. This will aid in meeting the future demand for coal through indigenous sources and reduce non-essential imports of coal.

He said most of the demand for coal in the country is met through indigenous production and supply.

"The actual demand for coal increased to 1,237 MT in 2023-24 from 1,115 MT in 2022-23. As against the increased coal demand, domestic coal production has also increased. In 2023-24, it increased by 11.7 per cent to reach 998 MT from 893 MT in 2022-23, "Reddy said.

According to the Central Electricity Authority (CEA), the actual electricity generation from coal-based power plants in the country during the last three years and in the current year has also increased.

The total electricity generation in 2022-23 was 1,421 billion units (BU) whereas the coal contribution was 1,146 BU. During 2023-24, the total electricity generation was 1,513 BU out of which, the coal-based generation was 1261 BU. In 2024-25, the total electricity generation was 1069 BU up to November. At least 84 per cent of power is coal-based.

Reddy said the Centre initiated several steps to ramp up domestic coal production to achieve self-reliance and reduce import. Some of the major initiatives include Single Window Clearance, amendment of the Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50 per cent of their annual production after meeting the requirement of the end-use plants.

"Production through Mine Developer and Operator (MDO) mode, increasing the use of mass production technologies, new projects and expansion of existing projects, and the auction of coal blocks to private companies for commercial mining are some of the other steps adopted to boost domestic coal production," he said.