Coal news and updates

Rajasthan may emerge 2nd-largest lignite producer

India Coal Market Watch

November 17: From being a marginal producer of lignite 10 years ago, Rajasthan is fast gaining share and may surpass Gujarat soon to become the second-largest producer of the material after Tamil Nadu.

 According to official data, Rajasthan’s share in lignite production has soared from a meagre 1.5-2% in 2005-06 to 22.3% in 2014-15. Over the last five years, the state showed marked growth as its production shot up from 1.207 million tons (mt) in 2009-10 to 10.763 mt last year.

During the same period, the share of Tamil Nadu, the top producing state, dropped from 68% in 2005-06 to 52.2% in 2014-15. Gujarat’s share declined from 29.7% to 25.5% over the same period, the data showed.

In terms of growth, Rajasthan’s production growth stands at a whopping 41.1% in 2014-15, far ahead of 0.5% for Tamil Nadu and Gujarat’s 6.2%.

 Overall, India’s production of lignite recorded a growth of 9% in 2014-15 to 48.257 mt, mainly due to the high growth in Rajasthan.