Based on a recent GlobalData report, coal production in India is expected to rise from 777.7 million tons (mt) in 2020 to 827.8 mt in 2021. By 2025, the total coal production is assumed to reach 1.2 billion tonnes (bnt). On the other hand, combined output of China, Indonesia, Australia and South Africa will rise from 5 bnt in 2021 to 5.43 bnt by 2025.
According to Associate Project Manager at GlobalData, Vinneth Bajaj, “India will be the largest contributor to this growth. Its production is expected to increase from 777.7 million t in 2020 to 1.2 billion t in 2025. This will be followed by China, Indonesia, Australia and South Africa, whose combined production is expected to increase from an estimated 5 billion tonnes in 2021 to 5.43 billion tonnes in 2025.”
The government had already opened commercial coal mining for the private sector to attract more investments, best-in-class technology and boost competition and employment. Companies like Vedanta, Hindalco, Adani Talabira and more have already won projects across numerous coal mines like Talabira.
Presently, the largest coal producing company in the world is the state-owned Coal India. Private players are also majorly contributing to increase the domestic coal production and efficiency in the sector by leveraging technology.
Earlier, Adani Enterprises, the flagship entity of Adani Group, became a successful bidder of Talabira II & III coal block issued by NLC India. The project is expected to generate a revenue of Rs 12,200 crore. While 20 million tonne per annum (MTPA) is the mine capacity, the total mineable reserve of the coal mines is around 554 MT. NLC India was allocated the block by the coal ministry and it floated the tender to choose MDO for developing and operating coal block in Talabira which was bagged by a subsidiary of Adani Enterprises.
Another leading conglomerate, Vedanta Ltd emerged as the top bidder for Jamkhani coal block in the tenth tranche of captive coal auction. 2.6 million tonnes was the approved capacity of this mine per annum.
According to a study by the Rainforest Action Network (RAN), considering the ever-increasing significance of the sector, the world’s biggest 60 banks have already infused around $3.8 trillion in the coal sector from 2016 to 2020.
