Decline in the Share of Imported Coal seen in last decade

The country is standing as the second-largest consumer of coal, propelled by a fast-growing economy.

Decline in the Share of Imported Coal seen in last decade

Despite the nation being endowed with the fifth-largest coal reserves globally, a significant decline has been witnessed in the share of imported coal in the last decade.

The country is standing as the second-largest consumer of coal, propelled by a fast-growing economy. Inducing the coal consumption theory it is meant to the unavailability of coking coal and high-grade thermal coal within our reserves necessitates imports to meet the requirements of industries like steel etc.

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However, medium and low-grade thermal coal is abundantly available domestically, making it imperative for the country to sufficiently produce to fulfill domestic demand, as per energy statistics.

Over the past decade, concerted efforts to bolster coal production have yielded a positive trend. Notably, from fiscal year 2004-05 to fiscal year 2013-14, the compound annual growth rate (CAGR) of coal production stood at 4.44% only. While, from fiscal year 2014-15 to the fiscal year 2023-24, this figure rose to around 5.63%.

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Additionally, the CAGR of coal import from the fiscal year 2004-05 to fiscal year 2013-14 stood significantly at 21.48% however, the CAGR of coal import from the fiscal year 2014-15 to fiscal year 2023-24 stood at 2.49% only.

Moreover, the CAGR of imported coal share stood at 13.94% during the period from the fiscal year 2004-05 to 2013-14 while the same figure plummeted to around -2.29%.

With strategic focus on optimizing indigenous coal resources and leveraging innovative technological solutions, India continues its journey towards self-reliance or Atmanirbhar in energy security of the nation.

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