Private captive, commercial coal mines cross 140 MT production in FY24

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Coal production from mines awarded to private miners for captive (self-use) and commercial purposes touched 147 million tonnes (MT) in financial 2023-24, a government statement said on Wednesday.

This is a 27 per cent jump over production during 2022-23 when it was 116 MT in FY. The dispatch during FY 2024 is 143 MT, against 110 MT during FY 2023, indicating a growth of 30 per cent, the Ministry of Coal said.

As of 31st March 2024, a total of 58 coal mines are under production whereas 49 mines were producing as of 31st March 2023. A total of 9 new coal mines commenced production during FY 2024 which includes 4 captive mines and 5 commercial coal mines.

Out of the total production of 147.2 MT, the power sector captive mines produced around 121.3 MT, captive mines of the non-power sector produced 8.4 MT and the production from commercial mines is 17.5 MT.

These captive mines were awarded to private companies and state-owned utilities over the last eight years. This came after a 2014 Supreme Court decision cancelled all coal block allocations made over the past two decades.

Three years back, the coal ministry opened up the coal mining sector for private players to also sell coal. The coal ministry has auctioned close to 64 mines till yet under commercial auction.

The coal ministry believes as private mining catches pace, it’ll help the country build surplus coal stock and also reduce pressure on the national miner Coal India Ltd which is the largest producer and supplier. This paper had reported recently, India plans to scale up its coal production capacity to 2 billion tonnes by 2030 which it expects would be more than the demand then, thereby helping build a buffer stock.

First Published: Apr 03 2024 | 7:03 PM IST

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