Coal Production target at more than 1 billion ton for FY24

India saw record power demand in Q2 of FY22 due to increased economic activity, causing prices rises in the day ahead and real time market. Shortages of coal exacerbated the situation as thermal power represents 72% of India’s electricity mix. To meet the growing demand, India aims for a one billion tonne coal production target for FY24, an 11% increase from FY23, and plans to end the import of 219 million tons of coal by FY24.

Will the production target alone meet the country’s peak demand during the summers? Continued reliance on imports would expose India to further global supply chain risks at a time when such supply chains remain fragile across several product and commodity categories.