Govt plans 1.4 billion tonne coal output by 2027

New Delhi: The Union coal ministry on Monday announced plans to increase India's coal production to 1.404 billion tonne by 2027, with an eye to further boost it to 1.577 billion tonne by 2030. 

Current domestic production hovers around one billion tonne annually. This increase in output aims to ensure ample supply of domestic coal to India's thermal power plants, which are essential for the country's growing energy needs.

The ministry also said that coal stocks at thermal power plants have been rising since 16 October, and stand at approximately 20 million tonne. Stocks at mines have hit 41.59 million tonne. Overall, including transit and captive mines, the stockpile has grown to 73.56 million tonne, up 12% from the previous year's 65.56 million tonne.

"…The coal supplied to domestic coal-based power plant is around 821 million tonne (MT) for the current year," it said.

The ministry is also preparing for an expected surge in coal demand, which is estimated to reach around 400 million tonne to support the additional 80 GW of thermal capacity projected by 2030. However, this figure may be adjusted based on future generation requirements and the contribution of renewable energy sources.

To meet these production goals, the ministry is planning opening of new mines, expansion of existing mine capacities, and utilisation of captive and commercial mines.  

"The production plans for year 2027 and 2030 will far exceed the likely domestic requirement of thermal power plants in the country, including that for likely additional capacity," the ministry said in a statement.

It also said that coal, power, and railway ministries are working in close co-ordination, resulting in smooth coal supplies.

The ministry's statement comes against the backdrop of a robust 13.02% annual growth in coal production, outpacing an 8.99% growth in power generation from domestic coal-based plants. Demand for thermal power has seen a 20% increase over the last year.

In response to rising power demand, the government has asked power generating companies to blend 6% imported coal until March 2024 and has directed all imported-coal-based plants to operate at full capacity until June next year.