NEW DELHI: The Coal Ministry has set an ambitious target of producing 1,080 million tonnes (MT) of coal during the financial year (FY) 2024-25. The ministry, in a press note, said this target builds on the strong foundation laid in the previous two years, where coal production witnessed a compounded annual growth rate (CAGR) of over 13%.
Notably, the ministry achieved its target of over 1 billion tonnes for FY 2023-24, exceeding it by a week. Coal India Limited (CIL), the state-owned mining giant, is expected to contribute a significant portion of the target, at 838 MT, while Singareni Collieries Company Limited (SECL) is projected to produce 72 MT. Captive and other mines are anticipated to contribute the remaining 170 MT.
The ministry is placing a strong emphasis on ensuring the quality of coal supplied to consumers. It has set an even more ambitious target of achieving 80% grade conformity in FY 2024-25. In 2023, over 76% of coal samples reportedly met the declared grade, leading to substantial revenue savings for coal companies.
To enforce these quality standards, a ranking system for coal mines based on grade conformation parameters has been developed. Additionally, flying squads from the Coal Controller Organization (CCO) conduct random inspections to collect samples and verify coal quality. The ministry is also pushing for mechanized coal handling infrastructure. As of last year, only 16% of the total coal dispatched by CIL was handled through mechanized means. This year, the target is to increase that percentage to 35%.
Finally, the ministry has undertaken a massive digitization initiative. This includes equipping all coal transport vehicles with GPS devices, implementing RFID technology for boom barriers, automating weigh bridges, and installing a comprehensive CCTV network connected to a central command center. These efforts aim to improve efficiency and combat illegal activities.