India’s Coal Sector Grows to Secure Power Supply

India has ramped up its coal production, ensuring a steady supply to meet rising energy demands. As of February 2025, coal output stands at 929.15 million tonnes (MT) (provisional) for the financial year 2024-25, reflecting a 5.45% growth from 881.16 MT produced during the same period in 2023-24. This increase is a result of government initiatives to enhance domestic production and improve coal transportation to power plants.

Surge in Domestic Coal Mining

India's coal industry has witnessed significant growth, reaching a record 997.826 MT in 2023-24, a 11.71% jump from 893.191 MT in 2022-23. This expansion aligns with the government’s goal of reducing coal imports and meeting the country’s energy needs through local production.

Addressing Energy Demand Through Strategic Coal Supply

For the 2025–26 financial year, the Ministry of Power has set a domestic coal requirement target of 906.1 MT. To ensure adequate availability, the Ministry of Coal (MoC) has aligned its supply plan with this requirement.

The coal stock at domestic thermal power plants, as reported by the Central Electricity Authority (CEA), stood at 53.49 MT on March 10, 2025. This marks a 20.20% increase from 44.51 MT recorded on the same day in 2023-24. The available stock is sufficient to run power plants for approximately 20 days at an 85% efficiency rate.

Enhancing Logistics and Monitoring Coal Distribution

To ensure seamless coal movement, the government has set up multiple monitoring bodies:

  • A special task force comprising officials from the Ministry of Power, Ministry of Coal, Ministry of Railways, CEA, Coal India Ltd (CIL), and Singareni Collieries Company Ltd (SCCL) actively oversees coal distribution.
  • An Inter-Ministerial Committee (IMC), including members from the Railway Board, Ministry of Coal, Ministry of Environment, Forest & Climate Change, and the Ministry of Power, has been formed to monitor supply chains and improve transportation efficiency. Experts from the Ministry of New & Renewable Energy and CEA participate as needed to ensure coal supply remains uninterrupted.

With these policy-driven efforts, India is ensuring a robust and self-sufficient coal supply chain, supporting continuous power generation, and strengthening energy security for the future.

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