According to the latest GlobalData report, coal production in India will grow from 777 Mt in 2020 to 827.8 Mt in 2021, i.e. by 6.4%. This follows an increase of 3.1% in 2020, an impressive achievement considering the disruptions caused by COVID-19. The report indicates that the entry of private players into the industry has played a key role in increasing production.
Winneth Bajaj, mining analyst at GlobalData, comments:
“GlobalData expects India’s coal production to grow at a compound annual growth rate (CAGR) of 9% to reach 1.2 billion tonnes in 2025, in line with the Indian government’s goal of 1 billion tonnes. However, COVID-19 will cause some short-term problems with this estimate.
“The sharp increase in new cases of COVID-19 since early March 2021 and new restrictions in key coal-mining states (such as Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra and Telangana) have made coal mining difficult in India. Despite this, in April 2021, the volume of coal production recovered slightly, which indicates a recovery in demand in the coming months. “
While the report indicates that the country’s electricity demand is growing, it is important to note that coal is being phased out from electricity production.
“In 2020, about 73% of India’s electricity was generated from coal. However, India has an environmental commitment to cut carbon emissions by up to 50% by 2030. As a result, the share of coal-fired electricity generation is projected to fall to 70.6%, while the share of renewables will rise from 2.9% in 2020 to 4.2% in 2025. ”
Read the article online at: https://www.worldcoal.com/coal/10062021/indias-coal-market-sees-growth-des Hit-covid-19-challenges /