Thermal Coal Demand Will Rise With Rising Electricity Demand, Coal Ministry Says; Calls it ‘Golden Opportunity’ for production


According to a senior government official, coal block allocators have a golden opportunity to increase production, as the demand for thermal coal will increase due to an increase in electricity demand. Coal shortages were reported amid rising electricity demand with the start of the summer season.

New coal blocks are being awarded for commercial mining and potential bidders have shown encouraging responses for these blocks. Some of those blocks began coal production within a year of the award, the coal ministry said in a statement on Tuesday. “Coal block allocators have a golden opportunity to increase coal production because the price of imported coal is very high at the moment and the demand for thermal coal will increase due to the increase in electricity demand. of the country,” Coal Secretary Anil Kumar Jain said.

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Production from the captive coal blocks recorded a 35% increase to 85 million tonnes in FY22. It was 63 million tonnes in FY21. du Coal, reviewed coal production with captive coal block allocators whose coal blocks have started production or are likely to start production in fiscal year 2022-23,” the statement read.

The review meeting was chaired by Jain. The Ministry of Coal has taken consistent initiatives to increase coal production from captive mines.

Currently, 106 coal blocks have been allocated under the Coal Mining (Special Provisions) Act 2015 and mine licenses have been granted for 47 mines. It is likely to reach 60 coal blocks in FY23. Annual peak nameplate capacity of operational coal blocks will be approximately 230 million tonnes and dry fuel production will increase significantly to more than 140 million tons in the current fiscal year.

In October last year, many states complained about the shortage of coal for power plants and some of them also faced blackouts for several hours a day.


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