No shortage of coal for power sector: Minister G Kishan Reddy

The long-term demand will be met by increased productivity of Coal India and commercial mines, he said.

Kolkata: Union Minister G Kishan Reddy said there is "no shortage" of coal for the power sector and the Centre will ensure adequate supply of the dry fuel to meet demand.

"We are supplying coal to all thermal power plants. We have requested plants based on imported coal to switch their technology to utilise domestic fuel. There is no shortage of coal in the country," Reddy, the minister for coal and mines, told PTI.

Coal production usually faces hindrances during the monsoon season.

Some technical issues related to commercial mines were being addressed, he said without divulging the details.

Speaking on the power ministry's advisory related to four per cent imported coal blending for domestic thermal plants, the minister said, Coal India is successfully ramping up production but the blending is advised to "mitigate the risk of blackout due to sudden rise in electricity demand".

Earlier this month, the Nominated Authority of the Coal Ministry held a meeting to review the status of both operational and non-operational captive and commercial coal mines.

During the meeting, the authority stressed on the need for operationalising coal blocks that are in advanced stages of development. The department appreciated efforts of all allottees in increasing coal production and urged them to achieve the committed output targets for the 2024-25 financial year (FY'25).

The Ministry of Coal has allocated or auctioned 161 mines with a peak-rated capacity of 575 million tonnes. Of these, 58 have received mine opening permission, and 54 are operational.

Last year, these mines produced 147 million tonnes, constituting 15 per cent of the country's total coal production.

In a review meeting held in early June, Reddy stressed on exploration of more blocks for auctions.

The government had relaxed technical eligibility for coal block auctions to attract more participants.

It has recently concluded the 10th round of coal block auctions.

The union minister had urged all stakeholders to work diligently to achieve at least 175 million tonnes of production from captive and commercial coal blocks this year, representing a 19 per cent growth.

As of June 30, 54 captive and commercial coal mines are under production, with 32 allocated to the power sector, 12 to the non-regulated sector and 10 for the sale of coal.

The current production from these mines stands at 39.53 million tonnes, registering a strong 35 per cent year-on-year growth.

An additional 11 mines are expected to commence production in FY'25.

Furthermore, 65 non-operational coal blocks are in various stages of obtaining regulatory clearances, distributed across nine states - Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal, the ministry said.