India’s Coal Production Set to Hit 1 Billion Tonnes by 2024-25: Ambitious Plan Unveiled

Various meetings of Inter-Ministerial Committee (constituted for the purpose of import substitution) are held to project demand for all grades of coal. There is substantial demand of high-grade coal in the consuming industries like Cement, Aluminum, Sponge Iron etc. given the growth in the economy.

The National Steel policy 2017 has projected increase in crude steel production from 101 Million Tonnes (MT) in FY17 to 300 MT by FY2030. Presently 148 MT crude steel is produced in FY24. Growth in steel production is expected to push up demand for metallurgical coking coal of India.

A plan to increase all India coal production to the level of 1 Billion Tonnes (BT) by 2024-25 and Coal India Limited’s production to 1 BT by 2026-27 has been prepared. The resultant increase in coal availability will be able to meet the demand of these grades of coal to the extent available.

To substitute import of Coking Coal, the current domestic blending of coking coal by steel sector to be increased from present 10-12% to 30-35%. Accordingly, Ministry of Coal has launched Mission Coking Coal in FY22 to meet the domestic coking coal demand projected in National Steel Policy 2017. Ministry of Coal has taken all necessary measures to enhance domestic raw Coking Coal production to reach 140 MT by 2030.

Supply of Coking Coal: During FY24, domestic washed coking coal supply was 5.4 MTPA, including 2.22 MTPA from CIL. With the setting up of new Washeries, country will be able to supply about 23 MTPA of washed coking coal to the steel sector by 2030.