Context: India achieved a historic milestone by surpassing one billion tonnes (BT) of coal production on 20 March 2025, in FY 2024-25—11 days ahead of last year’s 997.83 million tonnes (MT).
Meaning of the context: The coal sector’s success is attributed to the tireless efforts of Coal Public Sector Undertakings (PSUs), private players, and the dedicated workforce of around 5 lakh mine workers across more than 350 coal mines.
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- India’s coal production has reached 1047.57 MT (Provisional) in FY 2024-25, compared to 997.83 MT in FY 2023-24, marking a 4.99% growth.
- Coal imports fell 8.4% to 183.42 MT in April-December 2024 from 200.19 MT in the same period of FY 2023-24, saving $5.43 billion (?42,315.7 crore) in foreign exchange.
- Government initiatives like Commercial Coal Mining and Mission Coking Coal boosted domestic coal output by 6.11% during this period, reducing import dependence.
Economic significance of the coal sector:
- With the fifth-largest coal reserves and as the second-largest consumer, coal remains crucial, contributing 55% to the national energy mix and fuelling over 74% of total power generation.
- Despite renewable energy growth, coal-based thermal power will remain essential, with its share projected at 55% by 2030 and 27% by 2047.
- Railways & revenue: Coal stands as the single largest contributor to railway freight, with an average share of nearly 49% of total freight income amounting to Rs. 82,275 Crore in the fiscal year 2022-23 alone. This revenue contribution has surpassed 33% of total railway earnings.
- Government earnings: The coal sector contributes over Rs. 70,000 Crore annually to the central and state governments through royalties, GST, and other levies.
- Employment: The sector provides jobs to over 239,000 workers in Coal India Ltd and thousands more in contractual and transport roles.
- Economic growth: Substantial investments in capital expenditure, averaging Rs. 18,255 Crore annually over the past five years, have facilitated infrastructure development and resource optimization within coal sector PSUs.
Source : PIB