Coal Exchange On Anvil, Working To Raise Output

New Delhi: The coal sector is likely to witness a spate of activities in the upcoming year from launching maiden coal exchange to facilitating trading and rate determination of dry-fuel to meet the booming demand of the economy. The government also intends to work more closely in the area of coal gasification as it is on a high priority list for energy transition.

Coal gasification is a cleaner option compared to burning of coal as it facilitates utilisation of the chemical properties of dry fuel. Talking to media, Coal Additional Secretary Rupinder Brar said that “the demand (for coal) is extremely important. And we do see demand growing in India considering the growing size of the economy. Therefore, coal will also definitely be required and we are conscious of that and are working towards that”.

The efforts will be to continuously augment coal output and align it with the demand, she said. Brar said the pre-2014 policy on mine allocation has been disbanded and now the government gives blocks to allottees only when it is sure that it is going to be mined. “If you do an early production, operationalisation of the mine, you get incentives, rebates. If you don’t then there are penalties attached to it,” the official said. Elaborating on the priority areas of her ministry in the new year, Brar said the government is committed to a sustainable coal sector, balancing environmental sustainability with the wellbeing of coal-dependent communities.

She said the government is optimistic about coal exchange in 2025 and the details are being worked out. The production rate both in state-owned Coal India Ltd (CIL) and its subsidiaries as well as the commercial and captive mines has been exhibiting excellent growth, she said, adding that the coal ministry hopes to build on a very positive growth story and take it further in the upcoming year. According to the government’s provisional figures, the cumulative coal production, which includes output of CIL and captive and commercial mines, in the April-November period of the current fiscal year registered a growth of 6.21 per cent to 628.03 million tonnes (MT) over 591.32 MT during the same period in 2023-24. According to Deloitte India, the production of thermal coal in the country is expected to grow at a moderate 8-10 per cent, mainly due to rise in electricity consumption from retail as well as commercial sources.