India’s coal production had risen by 11.65% in FY 2023-24 to reach 997.26 million tonne, from 893.19 million tonne in FY 2022-23 and the target for FY 2024-25 has been set at an ambitious 1,080 million tonne. Most of the demand for coal in India country is met through indigenous production/supply. The actual demand for coal increased to 1,233.86 million tonne in FY 2023-24 from 1,115.04 million tonne in FY 2022-23.
Also Read: India plans removal of mandatory blending mandate for imported coal
The government sources have told CNBC-TV18 that a larger policy push has called for coal to be beneficiated before transport. Beneficiation of coal implies the removal of impurities to improve its calorific value per unit.
Sources explained that such a move will increase the efficiency of thermal power plants and reduce the overall burden on logistics as the removal of stone lumps and other impurities will reduce the need for railway rakes needed to transport the same amount of coal. With over 40 coal washeries working at less than 50% capacity, sources indicated that the idle capacity can be used for beneficiation.
Considering the decline in the performance of the washeries of Coal India Ltd and the burgeoning demand for washed coking coal in the steel sector, the government has taken the route of monetisation of the old washeries to enhance the washed coking coal capacity. However, sources said Coal India’s plan to monetise 4 old washeries via leasing has witnessed a lack of bidder participation.
Also Read: Coal imports up 4% at 162 MT in April-October period
