Business News/ News / India/  India’s domestic coal production goes up by 28%

Following a record-breaking coal production of 777 million tonnes (MT) in 2021-22, India’s domestic coal production has continued to rise in the current financial year. As of May 31, 2022, total domestic coal production in 2022-23 was 137.85 MT, up 28.6% from 104.83 MT in the same period in 2021. This pattern is expected to continue in June 2022. Coal India Ltd (CIL) has increased its coal production by 28% compared to the same period the previous year (as on16th June, 2022). For the current fiscal year, the domestic coal output target is 911 MT, up 17.2 percent over the previous year.

In the year 2021-22, coal imports for blending by Domestic Coal Based (DCB) power plants fell to 8.11MT, the lowest level in the last eight years. The robust coal supply from domestic sources and increased domestic coal production made this possible.

From 2016-17 to 2019-20, the Imported Coal Based (ICB) power plants imported more than 45 MT of coal every year. However, ICB power plant coal imports fell to the lowest level of 18.89 MT in 2021-22, and generation from these plants fell to 39.82 BU in 2021-22, compared to the 100+ BU that these plants have been generating for quite some time. Due to the high cost of imported coal, their generation has remained low this year as well.

Coal-based power generation has expanded at a CAGR of 1.82 percent over the last five years, while domestic coal supply to the power industry has grown at a CAGR of 3.26 percent. As a result, coal supply to the power industry has outperformed expansion in coal-based power generation in recent years and continues to do so this year.

The government was gearing up to increase the stock of coal at power plants to 40 million tonne (MT) during the monsoon season, Union power minister R K Singh earlier said. Speaking to PTI, the minister said right now, there are reserves of around 22.9 MT at the power plants.

"On April 1, our reserve stock at power plants was at 24 MT. On April 30, it came down to 19 MT and on May 15, it came down to 15 MT. However, because of (coal) imports, it has gone up to about 22.9 MT again," the minister said, replying to a question related to coal availability.

(With PTI inputs)

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Updated: 19 Jun 2022, 11:29 AM IST
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