Coal Production in India Witnesses Remarkable Growth: Achieves 47% Increase over Last Nine Years
India has experienced an extraordinary surge in coal production, achieving an impressive 47% growth rate over the past nine years. The country’s commitment to meeting energy demands is evident as it reaches a significant milestone of 893.08 million tonnes (MT) of coal production in FY 2023. With such remarkable achievements, India solidifies its position as a key player in the global coal industry and reinforces its journey towards energy self-sufficiency.
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Unprecedented Growth of Coal Production in India
During the financial year 2022-23, the Ministry of Coal successfully finalized agreements for 23 coal mines, collectively possessing a peak rated capacity (PRC) of 33.224 MT per annum. The overwhelming response received during the 6th round of commercial auctions further strengthens the expectation that an additional 25 coal mines will be allocated for commercial mining in FY 2023-24.
Setting Ambitious Targets
In line with the recently finalized Action Plan for 2023-24 by the Ministry of Coal, India has set ambitious targets for coal production in India for the upcoming financial year. The aim is to reach an impressive production volume of 1012 million tonnes, emphasizing the need for enhanced efficiency, sustainable practices, and the adoption of cutting-edge technologies to propel the coal industry forward.
Mission Coking Coal
Focusing on Domestic Production by 2030 Recognizing the importance of domestic coking coal, the Government launched “Mission Coking Coal” in August 2021. This strategic initiative aims to augment the production and utilization of coking coal in India by 2030.
Key Objectives of Mission Coking Coal
- Increasing Coking Coal Production in India: A major focus of the mission is to elevate coking coal production from 52 MT in FY 2022 to an impressive 140 MT by FY 2030. This substantial increase in production will cater to the rising demand for coking coal, particularly in the steel manufacturing sector, which heavily relies on blast furnace technology.
- Enhancing Coking Coal Washing Capacity: The mission places significant importance on enhancing coking coal washing capacity. The objective is to increase the washing capacity from 23 MT in FY 2022 to 61 MT in FY 2023. This will improve the quality of domestic coking coal, making it suitable for direct utilization in blast furnaces.
The Significance of Coking Coal
Coking coal plays a pivotal role in the production of steel through the blast furnace route. However, the high ash content, typically ranging from 18% to 49%, of domestic coking coal in India renders it unsuitable for direct use in blast furnaces. To address this challenge, coking coal undergoes a washing process to reduce the ash content. The strategic blending of Indian Prime and Medium Coking Coal, characterized by ash levels below 18%, with imported coking coal boasting an ash content below 9%, ensures optimal utilization of coking coal in the blast furnace process.
Remarkable growth of coal production in india, with a remarkable 47% increase over the past nine years, showcases the country’s dedication to meeting energy demands and driving economic growth. With an ambitious production target of 1012 MT for FY 2023-24 and the launch of “Mission Coking Coal,” India is poised to strengthen its position in the global coal industry.
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