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India saves Rs 82k crore forex outgo on coal imports PiPa News

India saves Rs 82k crore forex outgo on coal imports

NEW DELHI: The share of imported coal in the country’s total consumption decreased to 19.3% in April-December in fiscal year ended March 31 from 21% over the previous corresponding period, translating to Rs 82,264 crore worth of savings in forexthe coal ministry said.
The decrease in the consumption of imported coal is a result of the increase in domestic production behind a concerted push by the government that has been embellished by several reforms to clean up the system and incentives announced since 2014. The steady increase in coal production and improved availability has seen the CAGR (compounded annual growth rate) of imported coal consumption drop 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 finally started giving good results. The steady upward trajectory of coal production from captive and commercial sources over the past five years shows a CAGR of around 22.5%.
In accordance with the push of the government, the cumulative coal production in 2023-24 increased to 803 million tonne (MT) as of February 6 over 717 MT recorded in the corresponding period of 2022-23, which shows more than 12% growth in current fiscal. Available data also shows production from captive and commercial mines expanding by 26% to more than 125 MT in the April 2023-February 26 period. The International Energy Agency’s coal market report and forecast to 2023 projects India’s coal demand to rise 3.5% year-on-year to 1,397 million tonnes (MT) despite an expected shake-up in solar power capacity. in 2026, compared to 2021, and a target to increase the share of green power to 50% by 2030.