Coal India Share Price may Bullish: 5.85% growth in FY 2024-25, reaches 411.62 MT
In a remarkable feat, India’s coal sector has recorded a significant growth of 5.85% in the fiscal year 2024-25, reaching a provisional figure of 411.62 million tonnes (MT) as of September 12, 2024. This impressive achievement comes despite the challenges faced by the industry.
The growth in coal production can be attributed to the sustained efforts of the Ministry of Coal, Government of India, and its various subsidiaries. Coal India Limited (CIL), the largest coal producer in the country, has played a crucial role in this success story. CIL’s production rose to 311 MT during the fiscal year 2024-25, compared to 302.53 MT in the corresponding period of the previous year, marking a significant increase of 2.8%.
Singareni Collieries Company Limited (SCCL), a joint venture between the Government of Telangana and the Government of India, has also contributed to the overall growth. SCCL produced 67.14 million tonnes of coal during 2022-23, as against 65.02 MT during the same period of the previous year.
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The Ministry of Coal has been proactive in addressing the challenges faced by the industry. Through sustained investment programs and the application of modern technologies, the ministry has been able to raise the all-India production of coal to 997.83 MT in 2023-24, with a positive growth of 11.71%.
The government’s efforts to allocate commercial coal mines have also played a significant role in boosting production. In September 2024, the Coal Ministry issued allocation orders for three commercial coal mines, further strengthening the sector’s potential.
As of September 12, 2024, the coal stock held by coal companies has surged to 76.49 MT, showcasing an impressive annual growth rate of 49.07%. This increase in coal stock ensures a steady supply of the crucial fuel to various sectors, including power generation, steel production, and cement manufacturing.
The growth in coal production is a testament to the government’s commitment to ensuring energy security for the country. Coal remains a vital source of energy in India, accounting for a significant portion of the country’s electricity generation.
The success of the coal sector in FY 2024-25 is a positive sign for the Indian economy. The increased coal production will help to meet the growing energy demands of the country and support its continued economic growth and development.
In conclusion, the 5.85% growth in India’s coal sector in FY 2024-25, reaching 411.62 MT, is a remarkable achievement that highlights the industry’s resilience and the government’s efforts to address the challenges faced by the sector. As the country continues to strive for energy security and economic growth, the coal sector will undoubtedly play a crucial role in shaping its future.
