India, as the world’s second-largest coal consumer, achieved a significant milestone by surpassing the production of one billion tons of coal and lignite. The accomplishment, achieved ahead of schedule by twenty-five days compared to the previous fiscal year’s production of 937.22 million tons (mt), marks a historical high.
The mission to reach one billion tons of coal and lignite production was initiated several years ago to meet the increasing electricity demands of the nation. The milestone, signifies a crucial step towards energy security. Achieving the milestone ensures uninterrupted power supply to households while fuelling the country’s economy.
India’s coal production surged past various milestones ahead of schedule, underscoring the commitment to meeting the rising demand for coal from the power and industrial sectors. Notably, monthly coal production exceeded 100 million tons for the first time in March 2023, reaching a total of 107 million tons. In January 2024, the monthly output approached 100 million tons, demonstrating sustained growth in production.
The coal ministry’s efforts to boost production, particularly from captive and commercial mines, aim to meet the growing demand for coal, which accounts for approximately 70 percent of the country’s electricity generation. The International Energy Agency (IEA) forecasts India’s coal demand to rise by 3.5 percent annually until 2026, reaching 1,397 million tons, with a moderate increase in coal for power generation.
Despite global trends being influenced by China, India emerges as a significant driver of upward pressure on global coal demand through 2026. As reported by businessline, India currently maintains substantial coal stockpiles, ensuring sufficient supply for domestic coal-based thermal power plants.
