Coal production growth reaches to new level

Coal production in India is more than 70 per cent of the country's power generation through Thermal power plants. India is 2nd largest consumer of coal.

Coal production growth reaches to new level

The coal production was estimated to be around 382.62 MT in the year 2004-05 and has grown to 893.19 MT in 2022-23 and is all set to touch 1000 MT in the year 2023-24. The overall annual Coal production has increased from 565.77 MT in FY 2013-14 to 893.19 MT in FY 2022-23, witnessing a massive growth of 57.87 percent over the last 10 years.

The CAGR of coal production from 2008-09 to 2013-14 was 2.8 percent. The CAGR has been at a 5.20 percent high with the production in 2022-23 being at 893.19 MT. The increase has helped in the reduction of coal imports. Notably, coal India Limited, plays a dominant role, contributing over 80% of the country’s indigenous coal production and supply.

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There has been no increase in the notified price by CIL since 2018. The recent price revision was done by CIL in May 2022, in which the company has hiked only the notified prices for high-grade coal of Grade G2 to G10 by 8% to increase production of high-grade coal and reduce the dependence on imports, and this marginal price increase will affect less than 28% dispatches of CIL and incremental revenue will be only about 3.37%.

 

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With the growth in coal production in the country the coal availability has increased for the consumers, which is evident from the reducing trend of the premium in the coal auction.

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