Recently, Coal India announced via e-mail that the company has approved 32 mining projects with a total investment of 473 billion rupees to promote the Indian government’s policy of increasing domestic coal production instead of imports.
The Indian Coal Company stated that the 32 projects approved this time include 24 existing projects and 8 new projects. These coal mines are expected to have a peak production capacity of 193 million tons. The project is scheduled to be put into operation in April 2023, with an annual output of 81 million tons after it is put into operation.
The output of the Coal Company of India accounts for more than 80% of the total output of India. The company aims to achieve 1 billion tons of coal production in fiscal year 2023-24.
As the Indian economy recovers from the new crown pneumonia epidemic, the Indian Coal Company is pinning its hopes on the recovery of coal demand. Last month, Pramod Agarwal, Chairman of the Coal Company of India, stated that in addition to industrial consumption, as summer approaches, it will also stimulate electricity demand, thereby driving power plants to increase daily consumption and reduce inventories.
India’s mjunction service platform data show that in the first 10 months of this fiscal year (April 2020-January 2021), India’s coal imports were 18084 million tons, a decrease of 11.59% from the 204.55 million tons in the same period last year. To reduce dependence on imported coal, increasing domestic production is the key.
In addition, the coal company of India announced that the company has also invested in new railway and transportation infrastructure around the project to support the smooth export of coal.