Drop in share of imported coal in consumption saves Rs 82 k crore forex outgo

NEW DELHI: The share of imported coal in overall consumption in the country has come down to 19.3% in the April-December period of the financial year ending March 31 from 21% in the previous corresponding period, translating into Rs 82,264 crore worth of forex savings, the coal ministry said on Thursday.
The decline in the consumption of imported coal is a result of rising domestic production on the back of a concerted government push garnished with a slew of reforms to clean up the system and incentives announced since 2014.

The steady rise in coal production and improved availability has seen the CAGR (compounded annual growth rate) of imported coal consumption plummeting to about -2.7% between 2014 and 2024 from 13.7% between 2004 and 2014, government data shows.
The transparent auction mechanism for coal blocks without end-use restrictions has started yielding favorable outcomes. The consistent upward trajectory of coal production from captive and commercial sources over the past five years reflect CAGR of around 22.5%.