Free market fuels captive coal production by 46%

NEW DELHI: Encouraged by the sale on the open market, production of 35 captive blocks jumped 46% from a year ago to around 92 million tonnes, or 11% of the total estimated national production for this financial year, and is about to reach 130 million tonnes in the next month.
The sharp increase in production from these captive mines, combined with increased production from Coal India, is expected to bring total national coal production to 770 million tonnes in 2021-2022. This will be 5% higher than the 2019-20 pre-pandemic and 7% higher than the 2020-21 outings, preliminary government data shows.
In 2020, the government allowed commercial mining and changed the rules last year, allowing 50% of production from captive mines to be sold on the open market. This was done with the aim of increasing the availability of fuel in the market and reducing imports.
“Developers now have an incentive to produce more. The ministry has formed an advisory group to help expedite state approvals. As more mines get approvals, they are starting production in a small way , then accelerate rapidly,” a senior coal ministry official said. Tell yourself.
To put the higher production into perspective, India’s coal imports fell by almost 9% during the April 2021-February 2022 period despite a record increase in electricity demand. Thanks to a robust economic recovery, domestic coal-fired generation increased 17% from a year ago in the fiscal April-January period. Total coal-fired generation increased by 11%.

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