Coal Production to grow by 6 to 7% in next fiscal year, initiatives taken for low-import
The government has approved the creation of a new sub-sector under the Non-Regulated Sector linkage auctions with the nomenclature of ‘Steel using Coking coal through WDO route'.
In order to meet future demand of coal through indigenous sources and to reduce non-essential import of coal, domestic coal production is expected to grow by 6-7% annually in next few years to reach about 1.5 billion tonne by 2029-30.
Most of the demand of coal in the country is met through indigenous production/supply. The actual demand for coal increased to1233.86 Million Tonnes (MT) in 2023-24 from 1115.04 MT in 2022-23. As against the increased coal demand, domestic coal production has also increased. In 2023-24, the domestic coal production increased by 11.65% to reach 997.26 MT from 893.19 MT in 2022-23.
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The Government of India has approved a Financial Support Scheme with Rs 8500 crore outlay as viability gap funding to promote setting up of Coal/Lignite Gasification Projects for both PSUs and the private sector.
To substitute Import of Coking Coal, the current domestic blending of coking coal by steel sector to be increased from present 10-12% to 30-35%. Accordingly, Ministry of coal has launched Mission Coking Coal in FY22 to meet the domestic coking coal demand projected in National steel policy 2017. Following transformative measures taken by Ministry of Coal under ‘Atmanirbhar Bharat’ initiative of PM, domestic raw Coking Coal production is likely to reach 140 MT by 2030.
Read Also : US Economy Beats Forecasts with 147,000 New Jobs in June, Dimming Hopes of Rate CutsThe government has approved the creation of a new sub-sector under the Non-Regulated Sector linkage auctions with the nomenclature of ‘Steel using Coking coal through WDO route'.
In addition to reducing imports, the government is actively promoting coal exports to capitalize on the growing global demand for the fossil fuel. This initiative aims to position India as a key player in the international coal market, generating revenue and creating employment opportunities in the sector.
The reduction in coal imports and the promotion of exports are crucial steps in ensuring India's energy security. By relying more on domestically produced coal, the country can reduce its dependence on foreign sources and insulate itself from global price fluctuations.
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