Page 45 - FIPI - Policy Economic Report - May 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Northeast as India’s Gateway to Clean Energy Exports

Positioning the region as a future energy export hub, the Minister emphasized the Northeast’s proximity
to Myanmar, Bangladesh, and Bhutan, making it ideal for cross-border electricity trade. He also noted
the growing global movement toward carbon neutrality and green certification, stating that investments
in renewable energy will equip the region and the nation to meet emerging international standards such
as the EU’s Carbon Border Adjustment Mechanism.

Concluding his address, Shri Joshi urged industry leaders and innovators to look east and participate in
the transformation of the North East and utilise its potential. He assured investors of comprehensive
government support through single-window clearances, capital subsidies, and dedicated solar park
development. “The time to invest is now. Not just for returns, but for impact, for a cleaner tomorrow
and a self-reliant India,” the Minister said.

Coal Production in the Country Grows 3.63% in April, 2025 Compared to Last Year

India’s coal production and dispatch witnessed steady growth in April 2025, compared to the same
period last year. This reflects the continued efforts of the Ministry of Coal and its subsidiaries to ensure
consistent supply and operational stability in the sector.

The overall coal production in India during April 2025 reached 81.57 MT (Provisional), marking an
increase over the 78.71 MT produced in the corresponding period of the previous year. Production from
Captive/Other entities mines during April 2025 in FY 2025-26 stood at 14.51 MT (Provisional), registering
a significant rise from 11.46 MT recorded during the same period last year. This surge highlights the
growing contribution of captive mining to India’s overall coal output.

India’s total coal dispatch during April 2025 reached 86.64 MT (Provisional), demonstrating a steady
increase from 85.11 MT recorded during April 2024 in FY 2025-26.

As on 30.04.2025, the coal stock held by coal companies witnessed a notable surge, reaching 125.76 MT
in FY 2025-26, as compared to 102.41 MT during the corresponding period of the previous year. At Coal
India Limited (CIL) alone, the total coal stock stood at 105 MT in FY 2025-26, marking a 22.10% growth
over the 86.60 MT recorded during the same period last year. This surge reflects an impressive annual
growth rate of 22.8% underscoring the robust performance and efficiency of the coal sector.

The Ministry of Coal remains committed to achieving sustainable growth, improving coal availability, and
reducing dependence on imports. With the positive momentum, the coal sector continues to play a
pivotal role in powering India's growth story.

Revised SHAKTI Policy for Coal Allocation to Power Sector

The Cabinet Committee on Economic Affairs (CCEA) in the meeting held on 07.05.2025, chaired by the
Prime Minister Shri Narendra Modi, has accorded its approval for the Revised SHAKTI (Scheme for
Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation to Power Sector. The
Revised SHAKTI Policy adds to the series of coal sector reforms being undertaken by the Government.

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