India Accelerates Towards Self-Reliance in Coal Sector, Reports Record Production and Policy Reforms

India, possessing the world’s fifth-largest geological coal reserves and ranking as the second-largest consumer globally, relies heavily on coal for its energy needs.

Union Minister of Coal and Mines, Shri G. Kishan Reddy, reaffirmed the Ministry of Coal's commitment to reducing coal imports and boosting domestic production, during a press conference held today in New Delhi. Emphasizing the government's vision of achieving 'Atmanirbharta' (self-reliance) in the coal sector, the Minister highlighted the substantial progress made in strengthening India's energy security. Present at the event were Secretary of the Ministry of Coal, Shri Vikram Dev Dutt, Director General of PIB, Shri B. Narayanan, Additional Secretary Smt. Vismita Tej, and Joint Secretary Shri Sanjiv Kumar Kassi.

India's Coal Sector: A Pillar of Energy Security

India, possessing the world's fifth-largest geological coal reserves and ranking as the second-largest consumer globally, relies heavily on coal for its energy needs. Coal constitutes 55% of the national energy mix, and nearly 74% of power generation in the country depends on Thermal Power Plants (TPPs). The Minister emphasized that sustaining a robust coal sector is imperative for the nation's industrial growth and economic development.

Reducing Imports and Boosting Domestic Production

The Ministry's strategic initiatives have led to a significant reduction in coal imports. Between April and November 2024, coal imports declined by 5.35%, translating to savings of approximately $3.91 billion (₹30,007.26 crore). Notably, imports for blending in domestic power plants decreased by 23.56% during this period.

The 'Mission Coking Coal' initiative aims to ramp up domestic coking coal production to 140 million tonnes (MT) by FY 2029-30, reducing the steel sector's dependence on imported coking coal.

Record-Breaking Production and Progressive Policy Reforms

India achieved a historic milestone in coal production, reaching 997.82 MT in FY 2023-24, a substantial increase from 609.18 MT in FY 2014-15. This marks a Compound Annual Growth Rate (CAGR) of 5.64% over the past decade, with an 11.71% surge in production compared to the previous year.

A transformative policy reform was the introduction of commercial coal mine auctions in 2020, fostering private sector participation and the adoption of modern technologies. As of January 2025, 184 mines have been allotted, with 65 blocks granted Mine Opening Permissions. These blocks have collectively produced 136.59 MT, reflecting a 34.20% year-on-year growth. Production from these blocks is projected to surpass 170 MT in FY 2024-25.

Coal Sector's Economic Contributions and Growth

The coal sector has exhibited the highest growth rate among the eight core industries, registering a 5.3% increase in December 2024 compared to the previous year. Additionally, coal contributes about 50% of Indian Railways' freight revenue and directly employs nearly 4.78 lakh individuals.

State governments have also significantly benefited from coal revenues, with royalty, District Mineral Foundation (DMF) contributions, and State GST collections amounting to ₹31,281.7 crore in FY 2023-24.

Enhancing Coal Supply Chains and Infrastructure

To ensure uninterrupted coal supply, the Ministry has established robust institutional mechanisms, including an Inter-Ministerial Committee and coordination meetings with Railways and power sector stakeholders. Consequently, coal stock at TPPs currently stands at 49 MT, sufficient for nearly 21 days, even amidst logistical challenges during events like the Maha Kumbh.

The First Mile Connectivity (FMC) initiative has been launched to improve supply efficiency, with 39 projects commissioned, boasting a total capacity of 386 MTPA. Furthermore, the Rail-Sea-Rail (RSR) mode has successfully doubled coal transportation from 28 MT in FY 2022 to 54 MT in FY 2024.

Sustainability and Environmental Stewardship

The Ministry is committed to sustainable practices, undertaking extensive afforestation projects. In 2024 alone, over 54.06 lakh saplings were planted across 2,372 hectares. Under the 'Ek Ped Maa Ke Naam' campaign, more than 1 million saplings were planted at 332 locations across 11 states.

In addition, 4,695 hectares of land have been earmarked for Accredited Compensatory Afforestation. Over the past five years, 18,513 lakh kiloliters of treated mine water have been provided to 18.63 lakh people across 1,055 villages.

Technological Advancements and Future Readiness

The Ministry is leveraging technology to modernize the sector. Coal gasification has been identified as a key strategy, with a target of 100 MT by 2030. To support this, the government has approved an ₹88,500 crore incentive scheme for public and private sector projects.

The launch of the National Coal Mine Safety Report Portal and the Mine Closure Portal underscores the Ministry's commitment to safe, responsible, and transparent mining practices. Additionally, the proposed establishment of a Coal Trading Exchange aims to create a competitive and transparent market for coal, further modernizing the sector.

A Commitment to Sustainable and Responsible Growth

Through policy-driven reforms, technological innovations, and sustainable initiatives, the Ministry of Coal is steering India towards a resilient and self-reliant future in coal production and energy supply. By ensuring a robust, efficient, and environmentally responsible coal sector, the Ministry is playing a crucial role in supporting India's economic growth and long-term energy security.

The Ministry of Coal remains steadfast in its mission to build a sustainable, self-sufficient coal industry that aligns with India's vision of energy independence and environmental stewardship.