India coal sector witnessed 61 MT increase in 2021-22: Govt

Domestic dispatch has not only increased to the power sector, but also to the non-power sector by 101 MT in 2020-21 to 104 MT in 2021-22. Significantly, coal imports, which had reached a peak of 248 million tonnes (MT) in 2019-20, declined continuously during the next two years to 215 MT in 2020-21 and further to 209 MT in 2021-22.

New Delhi: India’s coal sector has witnessed a 61 metric tonnes (MT) increase in 2021-22 from the previous year’s production of 716 MT. The government statistics said that the all-India coal production has increased from 716 MT in 2020-21 to 777 MT in 2021-22 resulting in an increase of 61 MT. “Despite a steep rise in actual demand for coal from 906 MT in 2020-21 to 1,027 MT in 2021-22, coal imports could be contained due to increased domestic dispatch from 691 MT in 2020-21 to 818 MT in 2021-22,” the Coal Ministry said in a statement.

Domestic dispatch has not only increased to the power sector, but also to the non-power sector by 101 MT in 2020-21 to 104 MT in 2021-22. Significantly, coal imports, which had reached a peak of 248 million tonnes (MT) in 2019-20, declined continuously during the next two years to 215 MT in 2020-21 and further to 209 MT in 2021-22. “Despite a steep rise in actual demand for coal from 956 MT in 2019-20 to 1,027 MT in 2021-22, coal imports have not increased. Coal imports grew at a compound annual growth rate (CAGR) of 22.86 per cent during the period 2009-10 to 2013-14. At this CAGR, coal imports would have reached 705 MT in 2020-21 and further to 866 MT in 2021-22. The import of coal could be checked only by sustaining increased domestic supply over the years,” the Coal Ministry said.

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The decline in coal imports during 2021-22 is largely due to the decrease in imports by the Power Sector, which came down from 45 MT in 2020-21 to 27 MT in 2021-22, a decline of almost 40 per cent. “The decline is more steep if we compare coal imports by power sector in 2021-22 to the pre-Covid year of 2019-20 when such imports were 69 MT. This is despite the fact that total thermal power generation in the country increased to 1115 BU in 2021-22 from 1032 BU in 2020-21, an increase of 83 BU in absolute terms and almost eight per cent in percentage terms,” the Ministry said.

Coking coal import was 57 MT with a growth of 11.65 per cent during 2021-22, which is largely used in the steel sector. However, as compared to the pre-Covid year of 2019-20, the growth in coking coal imports is around 10 per cent. Coal imported by Non-regulated Sector (Cement, Sponge Iron & Paper etc) increased to 125 MT in 2021-22 from 119 MT in 2020-21 an increase of 5.23 percent.

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“Compared to the pre-Covid year of 2019-22, when imports by the non-regulated sector were 127 MT, imports by this sector have actually declined in 2021-22. Thus, the increase in import of coal by the non-power sector during 2021-22 is largely on account of growth in import of coking coal and import of coal by the non-regulated sector, which largely imports high-grade thermal coal. Supply of both these categories of coal is limited in the country,” the Ministry said.

Meanwhile, in its endeavour of gradually moving away from road movement of coal in the country, planned construction of new broad gauge rail lines in Greenfield coal-bearing areas, extending the rail links to newer loading points and doubling and tripling the rail lines in some cases enhanced rail capacity considerably for the coal ministry. In line with the goal of Prime Minister Gati Shakti, the Coal Ministry has also undertaken 13 railway projects to develop multimodal connectivity and identified missing infrastructure gaps for each project. Four railway projects have been mapped in Jharkhand and Odisha to facilitate the movement of coal with rapid logistics and wider connectivity for all the commercial miners.