Govt aims 186.63 MT coal production through commercial mines in FY25

Until December 31, 2023, around 50 captive/commercial coal mines are under production of which 32 are allocated to the power sector, 11 to the non-regulated sector and seven are for the sale of coal

The government aims to produce 186.63 million tonne (MT) of coal exclusively from captive or commercial coal mines during FY 2024-25, the Ministry of Coal said in a statement on January 8.

Until December 31, 2023, around 50 captive/commercial coal mines are under production of which 32 are allocated to the power sector, 11 to the non-regulated sector and seven are for the sale of coal. "Within three and half years after the commencement of commercial coal mines auction in 2020, six mines with a cumulative peak rated capacity (PRC) of 14.87 MT have already started production," the ministry said.

Production will be further stepped up to 225.69 million tonnes during FY2025-26. As per the current plan of the Ministry, the production target from such mines will be touching 383.56 MT by FY2029-30.

In December 2023, the total coal production from captive and commercial coal mines stood at 14.04 MT up by 38 percent from 10.14 MT in the same month of the previous year.

"Coal production and dispatch from captive and commercial coal blocks attained a remarkable growth from April 1 to December 31, 2023. The total coal production from captive and commercial coal mines during the period April 1, 2023, to December 31, 2023, stood at 98 MT," it said.

Coal India intensifies production through MDOs

Coal India Limited (CIL), a PSU under the Ministry of Coal, on January 8 stated that it plans to intensify coal production through mining developers-cum-operators (MDOs).

As per the approved mining plan, the MDOs excavate and deliver coal to coal companies. MDOs bring to the table mutually beneficial technology infusion, economically viable operations and increased production. Since contracts offered to them are on a long-term basis, allied infrastructure at mine projects also are developed by these private players. They facilitate rehabilitation and resettlement (R&R) issues, land acquisition, green clearances and coordination with state and central pollution boards.

CIL is targeting the operationalisation of 15 MDO projects with a combined rated capacity of 173 MT per year. It has already initiated operations in four projects with a combined rated capacity of 57 MT per year. Besides, contracts have been awarded for nine projects having a combined rated capacity of 83 MT per year.