The share of private sector in the country’s total coal production has grown to 15.3% (153 million tonnes) in FY24 from 9.4% (52 million tonnes) in FY13, thanks to a series of steps taken by the government to populate the sector with more miners. Commercial mining by the private sector is now largely unrestricted under composite licence. The rising share of private miners in coal output is despite a steady increase in production by public-sector Coal India also.
Domestic coal production touched 994 million tonnes in FY24, an increase of 11.6% over FY23. The liberalisation process in the sector began with the upending of the Coal Mines (Nationalisation) Act, 1973, in February 2018. However, given the demand-supply gap in the sector – which is likely two widen in the medium term with the recently announced plans to add more coal-based thermal power capacities than planned earlier, the sector needs more technology infusion in underground mining. Capital investments will have to stepped up further in new ventures including coal gasification projects to meet the fossil fuel needs of the country. The government has a set a target to eliminate imports of coal varieties that have potential domestic substitutes in 2-3 years.
From: financialexpress
Financial News
