Here’s How India Smashed Coal Production Record In April 2023

In April 2023, India produced a record amount of coal, according to the Ministry of Coal. A growth rate of 8.67% was achieved in the total coal output over this time, which increased from 67.20 million tons (MT) in April 2022 to 73.02 MT. This success is attributed to several steps the Ministry of Coal took to boost coal production, such as better utilising the mining capabilities of captive/private coal blocks etc.

In this article, we will explore how the same was done.

Key Highlights Of Coal Production In India (April 2023)

• Increase In Production- Coal India Limited (CIL) reported a production rise of 7.67%, from 53.47 MT in April 2022 to 57.57 MT in April 2023. In a similar vein, the use of the mining capabilities of captive/private coal blocks resulted in a 17.52% rise in production to 9.88 MT (provisional figure) in April 2023 compared to 8.41 MT in April 2022.
• Rail Connectivity Infrastructure Augmentation– The coal ministry has made progress to strengthen the rail link infrastructure for all important mines under PM Gati Shakti to enable quicker evacuation. As a result, the total coal dispatch (supply), which was 71.99 MT in April 2022 and 80.45 MT in April 2023, increased by 11.76%.
• Efforts to Enhance Coal Availability– The coal ministry has put up 103 coal/lignite blocks for auction in the 7th round of the auction to increase the supply of coal. 29 agreements have also been made for mines that were up for auction in the sixth round of bidding. There are 74 million tons of yearly Potential Recoverable Coal (PRC) in 29 coal mines. Government measures to boost domestic production will reduce reliance on imported coal and provide significant foreign exchange savings.

OFB’s Insight

Record coal production in India and initiatives to boost local production would lessen the country’s reliance on imported coal while simultaneously boosting its economy. Initiatives taken by the  Ministry of Coal to increase coal supply would eventually increase employment opportunities and boost the economy. India can emerge as the world’s top producer and exporter of coal with further efforts and improvements in the mining sector.

Read More – India To Increase Coking Coal Imports From Russia?

For real time commodity prices, latest news, and insights, please download the all NEW and all FREE OfBusiness APP.