DELHI: India, with the fifth-largest coal reserves in the world, is the second-largest consumer of coal, driven by its rapidly growing economy.
In the overall coal consumption spectrum, the absence of coking coal and high-grade thermal coal in our reserves requires us to import these resources to meet the demands of industries such as steel.
However, there is a plentiful supply of medium- and low-grade thermal coal within the country, making it necessary to increase domestic production to meet domestic demand.
Over the past decade, concerted efforts to bolster coal production have yielded a positive trend. Notably, from fiscal year 2004–05 to fiscal year 2013–14, the compound annual growth rate (CAGR) of coal production stood at 4.44%. From fiscal year 2014–15 to fiscal year 2023–24, this figure rose to around 5.63 per cent.
Moreover, the CAGR of coal imports between fiscal years 2004–05 and 2013–14 was notably high at 21.48 per cent. In contrast, the CAGR of coal imports from fiscal year 2014–15 to fiscal year 2023–24 was only 2.49 per cent.
The CAGR for the imported coal sector reached 13.94 per cent between the fiscal years 2004–05 and 2013–14, but later experienced a sharp decline to about -2.29%.
With a strategic focus on optimizing indigenous coal resources and leveraging innovative technological solutions, India continues its journey towards self-reliance, or Atmanirbhar, in the energy security of the nation.
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