The Indian coal sector has shown remarkable performance in recent months, contributing significantly to the national economy. Over the past four months, from April to July, the Modi government has garnered a staggering ₹20,071.96 crores from coal sales. This marks a 2.06% increase compared to the same period last year when the contribution was ₹19,666.04 crores. Notably, Coal India Limited (CIL) accounts for approximately 80% of coal production in the country, making it a vital player in the energy sector.
Key Contributions from Coal India in July
In July alone, CIL’s payments to the government reached ₹4,992.48 crores, up from ₹4,789.42 crores in the same month last year. This revenue primarily comes from various levies, including royalties, Goods and Services Tax (GST), and additional coal cess. The revenue generated from coal production is essential for both central and state governments, adding substantial funds to their coffers.
State-wise Payment Breakdown
| State | Payment (in Crores) |
|---|---|
| Jharkhand | 4,417.12 |
| Odisha | 4,319.67 |
| Chhattisgarh | 3,950.41 |
| Madhya Pradesh | 3,526.27 |
| Maharashtra | 2,086.35 |
Increase in Coal Production Across the Country
In addition to financial contributions, the coal ministry has reported a significant increase in coal production in India. Between April and August 25, coal output surged by 7.12%, reaching a total of 37.06 million tons, compared to 34.60 million tons in the previous year. This uptick in production is crucial for meeting the rising energy demands of the country.
Year-on-Year Growth in Coal Supply
As of August 25, 2024, the total coal dispatch has increased to 39.70 million tons, reflecting a year-on-year growth of 5.48%. The amount of coal supplied to the power sector has also seen an increase, rising from 31.34 million tons last year to 32.59 million tons this year. CIL has set an ambitious target of producing 83.8 million tons of coal in the current financial year to support this growth.
Conclusion
The performance of Coal India Limited and the coal sector as a whole in recent months illustrates the vital role that coal plays in India’s energy landscape and overall economy. As the demand for electricity continues to escalate, CIL’s contributions are likely to be crucial in ensuring energy security and economic stability in the years to come.
