Coal Production in the Country Crosses One Billion Tonnes Mark in a financial year | Current Affairs | Vision IAS
News Today Logo

Coal Production in the Country Crosses One Billion Tonnes Mark in a financial year

Posted 22 Mar 2025

2 min read

Apart from China, India is the only country to cross the 1 billion tonnes mark in annual coal output.

Significance of this Milestone

  • Fostering Energy Security: Coal contributes approximately 55% of its energy mix, and around 74% in electricity generation.
  • Powering economy: Increasing production will substitute imports and contributing in foreign exchange savings.

How did India accomplish this remarkable Milestone?

  • Key Reforms: 
    • Coal Mines (Special Provisions) CMSP Act- 2015 paved way for the coal mines for commercial mining by private entities.
    • Mines and Minerals (Development and Regulation) Amendment Act, 2021, allowed Composite Prospecting Licence-cum-Mining Lease (PL-cum-ML) specifically for coal.

Initiatives:

  • Integrated Coal Logistic Policy and Plan, 2024
    • PM Gati Shati-National Master Plan in coal sector
    • Other: Mission Coking Coal, National Coal Index (NCI), etc. 
  • FDI Policy: Allowing 100% FDI in coal mining under the automatic route has attracted global expertise and advanced technologies.
Image showing status of Indian Coal Sector

Existing Challenges/Concern for Coal Sector

  • Global Pushback against Coal: Developed countries are pushing for phasedown of coal production. 
  • Import dependence: India imported about 260 million tonnes of coal in FY 2023-24, dominated by non-coking coal (~77% of total imports).
  • Other issues: Land acquisition, environmental degradation due to open cast mining, etc.
  • Tags :
  • Energy Security
  • Coal
Watch News Today
RELATED ARTICLES
Subscribe for Premium Features