Coal production CAGR rises to 5.2% in last decade

The coal production in the country in 2022-23 stands at 893.19 MT, a notable increase from the projected 725.39 MT with the CAGR rising from 2.8 per cent in 2008-09 to 2013-14 to 5.2 per cent in 2014-15 to 2022-23, according to the data shared by Pralhad Joshi, Minister of Coal and Mines while replying to a question in the ongoing Parliament proceedings.  

The country's coal sector, driven by Coal India Limited (CIL) and Public Sector Undertakings (PSUs), is actively pursuing initiatives to boost production efficiency and decrease dependence on imported coal. 

In his reply, Joshi shared the details of operational enhancements and the state of technological adoption in the coal industry. The focus is on technological advancements, digital transformation, and innovative operational models, Joshi mentioned. 

PSUs are embracing Mass Production Technologies (MPT) like Continuous Miners (CMs) in underground mines and state-of-the-art technologies in opencast mines. The industry is also focusing on digital transformation which is underway in select mega mines, and Mine Developer cum Operator (MDO) and long-term outsourcing models are being employed, according to the official answer.

Apart from that, abandoned mines are also being revitalised on a revenue-sharing model to enhance the sustainability of their operations, Joshi informed the house.

Steps to reduce import dependency

The government is taking the following initiatives to reduce the dependency on coal imports, 

• Auctions on a revenue-sharing basis to encourage commercial coal mining.
• Operationalisation of new mines and expansion of existing ones to increase domestic coal availability.
• Coal linkage rationalisation initiative to optimise transportation, decrease costs, and streamline coal linkages.
• Extensive efforts to offer large quantities of domestic coal through eAuctions to discourage coal imports.
• Providing flexibility to consumers in the change of transportation mode from rail to road.