Coal: Leap in output, improved dispatches to stave off possible fuel shortages in 2022

New Delhi: The country's coal production is expected to record a "sizeable leap" in 2022 with increased output mainly from Coal India and captive mines, providing adequate firewall against any possible dry fuel shortages like the one witnessed in the latter half of this year.

While coal supplies have stabilised in recent times, efforts are on to further improve the fuel dispatches and a top government official said power plants are now receiving slightly more coal compared to their requirements.

Coal Secretary Anil Kumar Jain said the increase in coal output would be on account of more production from Coal India Ltd (CIL), captive coal blocks auctioned between 2015-2020 and commercial mines put on sale last year.

"Next year (FY 2022-23), we are expecting a sizeable leap in coal production," Jain told PTI in an interview.

In the last financial year, CIL dug out about 596 million tonnes (MT) of coal, he said, adding that in the ongoing fiscal, the output is likely to be upped to 640 MT. "Next (financial year), we are hoping that they (CIL) produce around 680 MT. So, between this year and next year, we expect an increase of 40 million tonnes," he said.

The captive coal mines that were put on sale post cancellation of blocks by the Supreme Court produced 63 MT last fiscal. In the current financial year, their production is likely to be scaled up to 90 MT.

According to the secretary, captive coal blocks are expected to produce 120 MT in the next financial year.

Further, he said "40 MT (from Coal India) plus 30 MT (from captive blocks) is 70 MT. In a country which produces about 750 MT, this increase in production is about 10 per cent. So, normally the demand rises by 5 per cent each year. So, we would be producing about 10 per cent more coal."

"We have 70 MT more coal. The country's power demand rises by 5 per cent, then... 10 per cent (more coal) becomes an adequate cushion," Jain

pointed out.