Coal is here to stay for another three to four decades and India will work on technology to improve production efficiency, Coal Minister Pralhad Joshi feels.
Speaking at the Investors' Conclave on Commercial Coal Mine Auction & Opportunities in Mining Sector on December 1, Joshi mentioned domestic coal production is seen rising to 900 million tonne in FY'23 - a feat which has not been achieved until now- as against 817 MT in FY'22 given an increase in domestic demand.
This comes at a time when India has renewed its thrust on using coal for electricity generation as globally cost of oil and gas has skyrocketed owing to the Ukraine-Russia war and global inflation.
"Even with the domestic coal production increasing, it will not be enough to fully meet domestic demand," he said. "Domestic coal production will touch 1 billion tonne by next year".
Joshi said India has simplified commercial coal mining process to attract more investors and has auctioned 67 coal mines for commercial mining with 141 mines on offer.
"As power demand doubles by 2040, even if renewable energy accounts for 50%, thermal power would account for 50% and require 1.5 billion tonne of coal," he added.
Coal India Limited (CIL) clocked its quickest 400 MT coal production for any fiscal year in the state-run company's history, it said on November 25. CIL also added that it expects coal production to further increase in the coming months to hit its target of 700 MT in FY23.
In 2021, CIL had produced 342 MT on November 24 and hit 400 MT of production on December 25. This year, the same quantum of production was achieved 31 days ahead compared to last year, which will give the company additional time to meet its target of producing 700 MT this fiscal, a CIL spokesperson told Moneycontrol.
Also read: Coal India clocks 400 MT production in record time
Joshi said that India would be among the largest economies in the next few years for which demand for power, and for coal, will increase.
"India would be among the largest economies in the next few years and for that we need power and for that we need more coal," Joshi explained.
Commercial mining would be important to achieve the goal of energy security, he added.
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