Coal sector up 10.9% among core industries in Nov on domestic output boost

The coal sector in India demonstrated notable growth, registering a 10.9% (provisional) upswing in November 2023, as conveyed by the Ministry of Commerce & Industries on Monday. The cumulative coal sector index from April-November 2023-24 witnessed a robust increase of 12.8% over the corresponding period in the previous fiscal year. This substantial rise contributed to an overall 7.8% (provisional) elevation in the combined index of the eight core industries during November 2023 compared to the same period the previous year. The core sectors encompass cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel.

The Ministry attributed this growth primarily to a significant surge in coal production, reaching 84.52 million tonnes (MT) in November, reflecting a year-on-year increase of 10.97%. The government's initiatives, including an auction-based regime for commercial coal mining, engagement with Mine Developer cum Operators (MDOs) to enhance domestic coal output, and the reopening of discontinued mines on a revenue-sharing model, were instrumental in driving this uptrend in coal production.

In the recently released statistics by the coal ministry, the country's coal production witnessed a noteworthy uptick of 12.29%, reaching 664.37 MT from April to December 25, 2023, compared to the corresponding period in the previous fiscal year. The cumulative achievement in coal production during FY 2023-24 up to December 25, 2023, reflects a substantial growth of 12.29%, amounting to 664.37 MT, in contrast to the 591.64 MT recorded during the same period last year.

These positive trends underscore the success of strategic measures taken by the government in bolstering energy security, ensuring domestic production through auction-based mechanisms, engaging MDOs, and reopening discontinued mines. The statistics released by the Ministry of Coal further affirm the efficacy of these initiatives in fostering a robust growth trajectory in India's coal sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.