India has achieved a significant milestone in its coal production, reaching the highest-ever output in the financial year 2023-24.
According to the Union Minister of Coal and Mines Shri G. Kishan Reddy, the country’s domestic coal production for the year stood at 997.826 million tonnes (MT), marking an impressive growth of 11.71% compared to 893.191 MT in 2022-23. The government has maintained a strong focus on enhancing domestic coal production to meet the country’s growing energy demands.
In the current financial year 2024-25, India produced 929.15 MT of coal (provisional data up to February 2025), showing a growth of 5.45% compared to 881.16 MT during the same period in the previous year. The Ministry of Power has projected a domestic coal requirement of 906.1 MT for the financial year 2025-26. In response, the Ministry of Coal has confirmed that the necessary coal supply plan of 906.1 MT has been established to meet the power sector’s demands.
As per the Central Electricity Authority (CEA), as of March 10, 2025, the coal stock at domestic coal-based power plants was 53.49 MT, reflecting a significant increase of 20.20% compared to 44.51 MT during the same period last year. This coal reserve is adequate for ~20 days at an 85% Plant Load Factor (PLF), ensuring stability in power generation.
To maintain a continuous supply of coal to power plants, a collaborative approach is followed by coal companies and an Inter-Ministerial Sub-Group. This group includes representatives from the Ministry of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL), and Singareni Collieries Company Limited (SCCL). They regularly monitor coal supply and make operational decisions to optimise supply to thermal power plants.
Additionally, an Inter-Ministerial Committee (IMC) has been constituted to oversee coal supply augmentation and power generation. The committee comprises officials from the Ministry of Coal, Ministry of Power, Ministry of Railways, and Ministry of Environment, Forest, and Climate Change, with special invitees from the Ministry of New and Renewable Energy and CEA.
The concerted efforts of the government and various ministries have resulted in record coal production and a stable supply chain. These measures are crucial in meeting India’s energy demands and ensuring uninterrupted power generation across the country.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Mar 18, 2025, 9:51 AM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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