Over the past nine years, India has experienced a significant increase in coal production. The overall coal production has risen by 47% to reach 893.08 million tonnes (MT), and coal supply has reached 877.74 million tonnes, reflecting a growth rate of 45.37%. This surge in coal production during the fiscal year 2023 is the highest in the country’s history.
In line with the recently finalized Action Plan for 2023-24 by the Ministry of Coal, the coal production target for the financial year 2023-24 is set at 1012 million tonnes. This target will be achieved through measures to enhance overall production, improve efficiency, promote sustainability, and adopt new technologies.
During the fiscal year 2022-23, the Ministry of Coal signed agreements for a total of 23 coal mines, with a cumulative peak rated capacity of 33.224 MT per annum. Considering the positive response received for the 6th round of commercial auctions, it is anticipated that 25 coal mines will be allocated for commercial mining during the fiscal year 2023-24.
To augment the production and utilization of domestic coking coal in India by 2030, the government launched “Mission Coking Coal” in August 2021. The mission aims to develop a roadmap that suggests ways to enhance the production and utilization of coking coal. It focuses on areas such as new exploration, increased production, enhanced washing capacity, and auctioning of new coking coal mines.
The objectives of the Mission Coking Coal include:
- Increasing coking coal production from 52 MT in FY 2022 to 140 MT in FY 2030.
- Expanding coking coal washing capacity from 23 MT in FY 2022 to 61 MT in FY 2023.
Coking coal is primarily used in the steel manufacturing process through the blast furnace route. However, domestic coking coal has a high ash content (mostly between 18% to 49%) and is not suitable for direct use in blast furnaces. Therefore, coking coal undergoes a washing process to reduce the ash percentage. Indian Prime and Medium Coking Coal with ash content below 18% is blended with imported coking coal with ash content below 9% before being utilized in blast furnaces.