Indian Economy News

The Coal Ministry is planning 1,404 MT of production by 2027

Based on current production levels of approximately one billion tonnes annually, the Ministry of Coal plans to produce 1,404 million tonnes (MT) of coal by 2027 and 1,577 MT by 2030. For the current year, about 821 MT of coal has been supplied to domestic coal-based power plants.

The additional coal needed to fuel the 80 gigawatts (GW) of new thermal capacity that the country will install by 2030 has been noted by the Ministry of Coal. At 85% plant load factor (PLF), the required amount of coal for increased thermal capacity would be about 400 MT; however, the actual amount needed might be less, based on future generation requirements and contributions from renewable sources.

As part of its production expansion strategy, the Ministry of Coal plans to produce an additional quantity of coal, and it will make sure that thermal power plants have sufficient domestic coal supply.

The production plan covers the opening of new mines, mine capacity growth, and production from commercial and captive mines. These three operational components are all making a contribution and have well-defined strategies for enhancement. The country's projected domestic thermal power plant requirements—including the need for probable extra capacity—will be much exceeded by the output plans for the years 2027 and 2030.

About the coal situation for the current year, stocks have begun to accumulate; at the mines, there is 41.59 MT of coal, and at the thermal power plants, there is about 20 MT. The total stock, which includes transit and captive mines, increased by 12% (year-over-year) to 73.56 MT from 65.56 MT the previous year.

The coal, power, and railway ministries collaborate with one another. As a result, a smooth coal supply has been maintained. The growth in power generation for domestic coal-based plants is 8.99% while the growth in coal production is 13.02% on a yearly basis (till date). It is further to be noted that during the last three months, demand for thermal power has grown over 20% of last year.

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