India has achieved a significant milestone in its coal and lignite production, surpassing one billion tonnes by March 22, marking a 25-day improvement compared to the previous fiscal year, according to the coal ministry.
The country produced more than 893 million tonnes of coal in the previous fiscal year ended March 31, 2023.
Coal companies held 96 million tonnes of coal stocks, while domestic coal-powered thermal plants maintained 48.2 million tonnes, sufficient for 21 days of usage. State-run Coal India reported 82.3 million tonnes of coal inventories as of March 22.
With ample coal reserves, coal companies in India play a crucial role in providing a continuous energy supply throughout the country, sustaining economic activities and meeting the escalating electricity demand, especially during peak consumption periods.
Coal minister Pralhad Joshi previously announced a 5% reduction in thermal coal imports from April to September 2023, with imports decreasing to 125.2 million tonnes. The Indian government plans to completely halt thermal coal imports by FY2025 (April 2024-March 2025).
India's commitment to self-sufficiency in the coal sector is evident in the decrease in coal imports. The share of coal imports dropped to 21% from April 2023 to January 2024, compared to the previous year's 22.48%, while the volume of coal imported for blending by thermal power plants declined 36.69% year on year to 19.36 million tonnes.
In December 2023, the International Energy Agency projected India to be the main engine of global coal demand growth through 2026, with consumption rising 8% in 2023 and 3.5% annually thereafter to 1.3 billion tonnes.
(Writing by Riley Liang Editing by Harry Huo)
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