Coal is a significant contributor to India’s economy, accounting for a significant portion of its energy needs. India is the world’s second-largest producer of coal, with production reaching 729 million tonnes in the fiscal year 2019-2020. The country’s coal production is mainly focused in the eastern and central parts of the country, where large reserves are found.
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Coal Reserves in India
India is home to some of the world’s largest coal reserves, with the majority of its coal reserves located in the eastern part of the country. The states of Jharkhand, Odisha, and Chhattisgarh have the highest coal reserves in the country. India’s coal reserves are estimated to be around 319 billion tonnes, with proven reserves accounting for 142 billion tonnes.
Coal Production in India
Coal production in India has been steadily increasing over the years, with the country producing 729 million tonnes of coal in the fiscal year 2019-2020. India’s coal production has grown at a compound annual growth rate (CAGR) of 4.6% over the last decade.
The state-owned Coal India Limited (CIL) is the largest coal producer in the country, accounting for around 80% of India’s coal production. CIL operates 369 mines across the country and has a workforce of around 272,000 employees.
Challenges Faced by the Indian Coal Industry
Despite being one of the largest coal producers in the world, the Indian coal industry faces several challenges. One of the primary challenges is the transportation of coal from the mines to the power plants. Most of the coal mines in India are located far away from the power plants, resulting in high transportation costs.
Another challenge faced by the Indian coal industry is the issue of environmental pollution. Coal mining and burning of coal are significant contributors to air and water pollution. The Indian government has introduced several measures to address this issue, such as mandating the use of clean coal technologies.
Future Outlook for Indian Coal Industry
The Indian government has set a target to reduce its dependence on coal and increase the share of renewable energy in its energy mix. However, coal is expected to remain a significant contributor to India’s energy needs for the foreseeable future. The government has set a target of producing 1 billion tonnes of coal by the fiscal year 2023-2024.
Conclusion
Coal is a crucial source of energy for India, and the country’s coal industry plays a vital role in its economy. While the Indian coal industry faces several challenges, such as transportation costs and environmental pollution, it is expected to remain an essential contributor to the country’s energy needs. The government’s focus on clean coal technologies and increasing the share of renewable energy in its energy mix will likely shape the future of the Indian coal industry.
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