India’s coal production of coal as reflected by the aggregate output of CIL, SCCL and captive coal mines for the month of March 2024 increased by 8.19% yoy to 116.63 million tonnes (MT). The production of CIL increased by 6.08% yoy to 88.58 MT, while production of SCCL was down 4.14% yoy to 7.30 MT of coal. The output of allocated captive coal mines for the month rose 20% at 20.75 MT.

Coal despatch/off-take by CIL, SCCL, and captive coal mines altogether for March 2024 grew by 8.68% to 90.31 MT and of which CIL contributing 68.77 MT (up 7.2% yoy), SCCL contributing 6.70 MT (up 1.58% yoy), and captive coal mines contributing 14.84 MT (up 20.16% yoy).

For the March 2024, the production of CIL, SCCL, and captive coal mines stood higher than its despatch reflecting addition in its Pithead stock to that extent.

CIL has achieved 99.06% of coal production target of 89.42 MT and 94.97% of despatch/off-take target of 72.41 MT in March 2024, while SCCL achieved 105.8% of production target of 6.90 MT and 97.3% of despatch/off-take target of 6.89 MT during the month. Captive coal mines achieved 124.98% of production target of 16.60 MT and 89.39% of despatch/off-take target of 16.60 MT during the month.

For FY2024, Production of coal was up by 11.7% yoy to 997.23 MT. Meanwhile, despatch of coal was up by 10.8% yoy to 972.60 MT.

For FY2023, Production of coal was up by 14.72% yoy to 892.74 MT, meanwhile, despatch of coal was up by 7.09% yoy to 877.45 MT. Production of coal for the FY 2022 was up by 8.56% yoy to 777.26 MT and despatch of coal for the FY 2022 was up by 18.3% yoy to 818.14 MT.

Coal despatches to power sector jumps 6.57% in March, up 8.78% in FY24

Total coal despatch to different sectors increased by 8.68% to 90.31 MT in March 2024. The Power utilities coal despatch has increased by 6.57% to 73.88 MT, accounting 81.8% of total despatch to different sectors.

The aggregate coal despatch to the power sector and captive power plants (CPP) combined for March 2024 was stood at 79.50 MT, an increase of 7.4% from corresponding previous month. These sectors contributed 88% of the total coal despatches in March 2024.

For FY2024, total coal despatch to different sectors increased by 10.84% to 972.60 MT. The aggregate coal despatch to the power sector and captive power plants (CPP) combined during this period was stood at 870.55 MT, an increase of 10.4% from corresponding previous period. These sectors contributed 90% of the total coal despatches in FY2024.

For FY23, total coal despatch to different sectors increased by 7.09% to 877.45 MT, supported by higher production and improved rail connectivity for all major mines under PM Gati Shakti - National Master Plan for Multi-modal Connectivity, which is targeted towards faster and efficient transportation of coal.

The aggregate coal despatch to the power sector and captive power plants (CPP) combined during this period was stood at 784.04 MT, an increase of 9.1% from corresponding previous period. These sectors contributed 89% of the total coal despatches in FY23 as against 88% in FY22.

India ranks fifth in the world, in terms of coal deposits and Coal India Limited is one of the largest producers of coal. India is the second-largest consumer of coal behind China, with the demand primarily driven by the power sector. The coal industry is expected to grow at 6-7% annually, reaching 1 billion tonnes by FY 25-26 and approximately 1.5 billion tonnes by 2030. It is anticipated to replace substitutable imports and enhance exports.

Strong growth in coal demand and Production-The total production of coal in India during FY2023 was 893.08 MT, reporting a positive growth of 14.76% over the previous year. Driven by rising population, a growing economy and a quest for improved quality of life, energy usage in India is expected to rise phenomenally over the next few years. Despite the emphasis on renewable/non-fossil fuel-based energy, transitioning from coal is highly unlikely in the foreseeable future. Share of coal in the energy basket is also expected to remain significant as the demand for coal is likely to be in the range of 1.3-1.5 billion tonnes by 2030. The demand is also projected to rise and peak around 2040

Adoption of digital methods to aid productivity- To enhance productivity of coal mines, automated and digitised processes have been implemented. Additionally, coal is now kept in silos or bunkers and immediately loaded on waggons with the help of a quick loading system or belt conveyors. This minimises carbon emissions to a large extent. Additionally, coal exchange between producers and suppliers is expected to improve the supply chain operations.

The country’s total electricity generation during FY2023, including renewables was 1624.16

Billion Units (BU) compared to 1491.86 BU generated in FY2022. The generation growth of 8.87% during the year. Of this total, coal-based generation accounted for 70.6% or 1145.86

BU, with 10% growth over the preceding year. The generation through domestic coal sources was 1105.25 BU or 96.5%

Additionally, coal stokes many non-power industries as well viz. steel, cement, fertilisers, sponge iron, aluminium and a host of other industries.

Coal Production outlook- Based on the demand projection in ‘Vision 2024’ for coal sector in the country, coal ministry prepared a roadmap to project production plan in medium term wherein CIL has envisaged 1 Billion Tonne (Bt) coal production by the year 2025-26 and beyond to meet the coal demand of the country. To achieve this target, CIL has identified major projects and assessed their related issues. India’s energy use is projected to grow at a rapid pace to fuel economic development, increased urbanization, improved electricity access, manufacturing base and rural electrification programme.

Domestic coal production gains 11.6% in February 2024

India's coal sector has exhibited highest growth of 11.6% (provisional) among the eight core industries for the month of February 2024, according to the Index of Eight Core Industries (ICI) with a base year of 2011-12, as reported by the ministry of commerce & industries. This remarkable performance of the coal sector underscores the ministry of coal' continuous efforts and strategic initiatives, aligning with the "Atmanirbhar Bharat" vision. It highlights the sector's pivotal role in advancing the nation’s journey towards self-reliance and enhancing energy security.

Domestic coal production increased by 10.6% to 97.49 million tonnes (MT) in February 2024 over February 2023. It was down 3.1% over January 2024.

For April-February period of FY2024, coal production grew 12.1% to 889.65 MT. Coal production registered growth of 14.8% to 901.58 MT in FY2023 as compared to growth of 8.5% to 785.06 MT in FY2022, decline of 1.9% to 723.22 MT in FY 2021, decline of 0.4% to 736.90 MT in FY 2020, growth of 7.4% to 739.62 MT in FY 2019, and growth of 2.6% to 688.76 MT in FY 2018.

India's coal production touched a new high of 997.4 MT in fiscal year 2024 (FY24), marking an 11.67% increase from the previous year, but falling short of the 1-billion-tonne target This remarkable performance of the coal sector underscores the ministry of coal' continuous efforts and strategic initiatives, aligning with the "Atmanirbhar Bharat" vision. It highlights the sector's pivotal role in advancing the nation’s journey towards self-reliance and enhancing energy security.

The aggregate coal despatch to the power sector and captive power plants (CPP) combined was stood at 870.55 MT in FY24, an increase of 10.4% from corresponding previous period.

For the current financial year (FY25), Coal India has set an ambitious production and supply target of 838 MT, aligning with the government's objective to eliminate coal imports for the power sector by the end of FY26