India has achieved a historic milestone by surpassing one billion tonnes of coal production in the fiscal year 2024-25, reaching this mark on March 20, 2025—11 days ahead of the previous fiscal year’s total of 997.83 million tonnes.
Significance of Coal in India’s Energy Landscape:
- Energy Mix: Coal accounts for approximately 55% of India’s energy consumption.
- Electricity Generation: Around 74% of the country’s electricity is generated from coal-based power plants.
Reforms and Policies Driving Increased Production:
- Legislative Amendments: Changes to the Mines and Minerals (Development and Regulation) Act have streamlined operations in the coal sector.
- Private Sector Participation: Opening the coal sector to private players through commercial auctioning of coal blocks has enhanced competitiveness and efficiency.
Economic Implications:
- Import Reduction: Enhanced domestic production has led to a decline in coal imports, reducing dependency on foreign coal sources.
- Foreign Exchange Savings: From April to December 2024, India’s coal imports decreased by 8.4%, resulting in foreign exchange savings of approximately $5.43 billion (₹42,315.7 crore) compared to the same period in the previous year.
Atmanirbharta
- Aligned with the ‘Viksit Bharat 2047’ vision, this milestone positions India to become fully self-reliant in the energy sector.
- Through continued strategic reforms, technological advancements, and a focus on responsible resource management, India’s journey towards an Atmanirbhar Bharat remains on track.
(Source: PIB)
