Share of Imported Coal is on slide: Govt
Published: Jun 29, 2024
By TIOLCorplaws News Service
NEW DELHI, JUNE 29, 2024: INDIA, endowed with the fifth-largest coal reserves globally, stands as the second-largest consumer of coal, propelled by a fast-growing economy.
In overall coal consumption spectrum, the unavailability of coking coal and high-grade thermal coal within our reserves necessitates imports to meet the requirements of industries like steel etc. However, medium and low-grade thermal coal are abundantly available domestically, making it imperative for the country to sufficiently produce to fulfil domestic demand.
Over the past decade, concerted efforts to bolster coal production have yielded a positive trend. Notably, from fiscal year 2004-05 to fiscal year 2013-14, the compound annual growth rate (CAGR) of coal production stood at 4.44% only. While, from fiscal year 2014-15 to fiscal year 2023-24, this figure rose to around 5.63%.
Additionally, CAGR of coal import from fiscal year 2004-05 to fiscal year 2013-14 stood significantly at 21.48% however, the CAGR of coal import from fiscal year 2014-15 to fiscal year 2023-24 stood at 2.49% only.
Moreover, CAGR of imported coal share stood at 13.94% during the period from fiscal year 2004-05 to 2013-14 while the same figure plummeted to around -2.29%.
With strategic focus on optimizing indigenous coal resources and leveraging innovative technological solutions, India continues its journey towards self-reliance or Atmanirbhar in energy security of the nation.
