Minister Pralhad Joshi Announces Robust Surge in Coal Production Over a 6-Year Period
Minister Pralhad Joshi Announces Robust Surge in Coal Production Over a 6-Year Period
Minister Pralhad Joshi, responsible for Coal and Mines, shared impressive progress in the production of coal from both captive and commercial coal mines. Over the past six years, the sector has experienced consistent growth, with a remarkable growth rate of 216%. This highlights the positive trajectory of the coal industry in India.
Minister Joshi further highlighted a significant achievement in the coal sector through the successful auctioning of 86 commercial coal mines. This move demonstrates the government’s commitment to liberalizing the coal sector and unlocking its economic potential. The minister’s tweet also emphasized the substantial annual revenue of ₹34,188 crore that will be generated for various states across the country, indicating the significant economic benefits associated with the auctioning of these coal mines.
Minister Pralhad Joshi, in a recent meeting with senior officials from the Ministry of Coal, assessed the performance of coal production from the auctioned mines and discussed strategies to further enhance production. The focus was on achieving a notable 39% increase in coal production during the current fiscal year.
During the meeting, Minister Joshi placed specific emphasis on underground coal mines, recognizing their potential in contributing to the country’s coal production. He highlighted the significance of the Underground Coal Mine Mission Plan, which aims to achieve a milestone of 100 million tonnes of coal production. This mission plan aligns with the government’s commitment to increasing coal production and promoting the development of the coal sector.
In June 2020, Prime Minister Narendra Modi initiated a significant event by auctioning commercial coal mines, allowing private participation in the sector for the first time. This momentous step was taken under the provisions of the Coal Mines (Special Provisions) Act, 2015, and the Mines and Minerals (Development and Regulation) Act, 1957, opening up the coal industry to private entities.
The Ministry of Coal has successfully conducted six tranches of commercial coal mine auctions, resulting in the allocation of 86 coal mines. These mines have a combined annual production capacity of 218.9 million tonnes per annum (MTPA). This achievement demonstrates the government’s commitment to promoting private-sector participation and efficiency in the coal sector.
The Ministry of Coal is currently conducting the 7th tranche of commercial coal mines auctions, with 98 mines on offer. This ongoing auction provides a valuable opportunity for interested stakeholders to acquire coal mining assets and contribute to the growth and development of the sector.
The transparent and competitive bidding processes employed in the strategic allocation of these coal mines align with the government’s goals of boosting coal production, reducing import reliance, attracting private investments, and fostering a more efficient and competitive coal market.
By promoting private participation and implementing measures to enhance the ease of doing business, the government aims to stimulate investment, technology adoption, and sustainable coal mining practices. These initiatives will not only drive economic growth but also contribute to energy security and meet the rising demand for coal in various sectors. The ongoing auctions represent a crucial step towards achieving these objectives and further advancing the coal industry in India.
The introduction of commercial coal mine auctions has brought about a remarkable reduction in the time taken to operationalize coal mines. Previously, the process could take around five years on average, but with the advent of commercial auctions, coal mines have been able to commence production much more quickly. This expedited timeline is already yielding tangible results, with commercial mines making significant contributions to coal production.
In the fiscal year 2021-22, commercial coal mines produced approximately 1.15 million tonnes (MT) of coal, reflecting the initial impact of operationalized commercial coal blocks. This production figure highlights the success of the auction process and the ability of commercial mines to swiftly contribute to the overall coal output of the country.
In the fiscal year 2022-23, the production from commercial coal mines saw a substantial surge, reaching 7.12 million tonnes (MT) of coal. This notable increase in production can be attributed to the operation of four specific commercial coal blocks: Sulyari, Garepalma IV/1, Garepalma IV/7, and Gotitoria mines. These mines have played a significant role in driving the growth of coal production from the commercial sector.
Looking ahead to the fiscal year 2023-24, the Ministry of Coal projects that an additional six commercially auctioned coal mines will commence operations. These mines, which have been successfully allocated to private entities, are expected to make a significant contribution to the overall coal production in the country.
The Ministry estimates that the combined coal production from these six operationalized mines in FY 2023-24 will amount to approximately 12.2 million tonnes (MT). This expected increase in production highlights the potential impact of the commercial coal mining sector in meeting the growing energy requirements of the nation and supporting its developmental needs.
