Centre Sets Ambitious 1.5 Billion Tonne Coal Production Target By 2030

The Ministry of Coal has set an ambitious domestic coal production target of about 1.5 billion tonnes (BT) by 2030, aiming to meet growing energy demands while promoting environmental sustainability in mining operations, said Union Coal and Mines Minister G Kishan Reddy.

In a written reply in the Lok Sabha, Reddy said that over the past three years, coal production has seen steady growth. 

India produced 893.19 million tonnes of coal in 2022-23, 997.83 million tonnes in 2023-24, and a provisional 1047.5 million tonnes in 2024-25.

To align coal mining with sustainability goals, various initiatives have been undertaken.

These include plantation drives, bio-reclamation of mined-out areas, restoration of degraded land, utilisation of mine water for community needs, development of eco-parks, and implementation of energy efficiency measures.

According to the statement, in line with the Coal Mine/Block Development and Production Agreements, successful bidders are mandated to adopt mechanised mining methods using modern technologies.

These practices aim to reduce carbon emissions and environmental impact through efficient coal extraction, transport, and mechanised loading via First Mile Connectivity systems.

Coal companies are also adopting clean coal technologies such as Coal Bed Methane extraction and coal gasification. 

Efforts are underway to shift away from road transport towards mechanised handling systems to reduce emissions. Renewable energy projects, covering solar, wind, pumped storage, and geothermal, are also being implemented.

To boost production, the government has introduced several policy measures:

- Regular review of coal block development.

- MMDR Act amendments enabling captive miners to sell up to 50 per cent of output in the open market.

- Single Window Clearance portal for faster approvals.

- A Project Management Unit to assist allottees.

- Commercial coal mine auctions with incentives for early production and coal gasification.

- Coal India Limited (CIL) is deploying advanced technologies in both underground and opencast mines, while Singareni Collieries Company Limited is enhancing coal handling infrastructure for improved efficiency.

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