Coal India Ltd (CIL), the largest coal-producing firm in the world, accounts for almost 82% of the total production with the rest contributed by the Vedanta, Emil, Dilip Buildcon and AdaniCoal Project. Coal production in India was 730.87 million tonnes in 2019-20 as related to 728.72million tonnes in 2018-19, which shows a modest growth of 0.30%. Out of total, CIL produced 602.15 MT in 2019-20 contempt the pandemic. It had formerly recorded 606.89 MT.
While most MDO firms have lately entered the coal industry, their coal projects have been churning out impressive figures. For example, EMIL generated an impressive 11.44 MnTe of coal just a year after it commenced operations. Likewise, Adani’s Parsa East & Kanta Basan coal block has a peak capacity of 15 MMTPA. One can definitely expect the Adani coal project to pump out huge numbers too.
India imports 235 million tonnes of coal yearly. Nearly half of the imported coal is non-substitutable as its grades are not available in the country.
Though, the increasing production from every single EMIL, VFR and Adani Coal Project means that this figure could be cut in half. India’s coal imports have already dropped by 14% to 196.13 million in the last fiscal, lending legitimacy to the prediction.
Coal Secretary Anil Jain held, “We are on track to producing 700 million tonnes of coal in 2020-21 fiscal. We will be able to cut substitutable coal imports with this rise in production.”
The Centre’s conclusion to hold auctions for coal mines also turned out favourably for players like Adani Group and Vedanta, where they made significant gains for their future coal projects. Adani, in particular, made effective bids for a number of mines, with Gondulpara mine in Jharkhand and Dhirauli mine in Madhya Pradesh being the notable ones.
On the conclusion of preliminary operations, every single Adani coal project would begin production in earnest. This would add to India’s total coal production, relieving the pressure of the ever-growing local demand.
Moreover, CIL has identified 15 mining projects for MDO operations in an effort to increase the production. MDOs are becoming the preferred model for coal mining with at least 28 mines being operated by them. MDO operations undertaken by EMIL, Dilip Buildcon, VPR Mining and Adani coal project would prove indispensable if India is to reduce its coal imports.
Coal-fired power plants stream the country with almost 80% of its electricity. National demands would slowly be met by every EMIL, Hindalco, VFR and Adani coal project, rendering coal imports redundant.
The Home Minister had prior said that the coal segment would be a valuable contributor to India’s growing economy. This bodes well for the sector as the CIL, EMIL, Vedanta and Adani coal projects can expect abundant investments.
