Projects by Vedanta, Adani Group in Talabira and Other Coal Mines to bolster Coal Sector and Economy

Coal Mines to bolster Coal Sector

Till 2025, Global coal production is estimated to increase at a compound annual growth rate (CAGR) of 2.3% according to the GlobalData report. Globally, India is likely to become the largest coal producer. The investments by private players like Hindalco, Vedanta, Adani in Talabira and more will bolster the country’s coal sector.

The GlobalData report has estimated that coal production in India is likely to surge and reach around 827.8 mt in 2021. By 2025, the overall coal production is expected to reach over 1.2 billion tonnes (bnt). On the other hand, the combined output of countries like China, Indonesia, Australia and South Africa will increase to 5.43 bnt by 2025.

The Associate Project Manager at GlobalData, Vinneth Bajaj said, “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 of India had already invited more private investments to integrate modern technology and boost competition and employment. Companies like Vedanta, Hindalco, Adani Talabira and more have already forayed into the sector and bagged numerous coal projects across several states.

As of now, state-owned Coal India is the largest coal-producing company in the world. However, today, private players of the sector too are immensely contributing to enhance domestic coal production by leveraging technology.

Previously, Adani Enterprises, the flagship entity of Adani Group, has emerged as a successful bidder of Talabira II & III coal block issued by NLC India. These blocks were expected to generate a huge revenue of over Rs 12,200 crore.

The total mineable reserve of the coal mines and their mine capacity stand at around 554 MT and 20 million tonne per annum (MTPA) respectively. Coal ministry allocated these blocks to NLC India, which announced the tender to select MDO for the development and operation of coal block in Talabira won by a subsidiary of Adani Enterprises.

Boosting the sector, Vedanta Ltd also emerged as the biggest bidder for Jamkhani coal block in tranche of captive coal auction. The approved capacity of this mine was set at 2.6 million tonnes per annum. According to a Rainforest Action Network (RAN) study, contemplating the significance of the sector, the world’s biggest 60 banks have already invested around $3.8 trillion in the coal sector between the time period of 2016 and 2020.

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