New Delhi, Feb 10
India’s demand for coal is expected to grow significantly, reaching 1,462 million tonnes (MT) by 2030 and 1,755 MT by 2047, according to the government.
India has the fifth-largest coal reserves in the world and is the second-largest consumer of coal. Despite increasing efforts to use renewable energy, coal remains a key part of India’s energy mix, contributing to 55% of the country’s total energy needs.
Thermal Power and Coal’s Continued Role
Over the last decade, thermal power, which is mainly powered by coal, has made up over 74% of the country’s total electricity generation. Although renewable energy is growing, the increasing demand for electricity means that India will still rely on thermal power for a significant portion of its energy needs. By 2030, it is expected that thermal power will account for 55% of the energy mix, and by 2047, it will still make up about 27%.
Growth in the Coal Sector
The coal sector saw its largest growth among the core industries in December 2024, with a growth rate of 5.3%. The sector also saw a 6.2% increase in the coal industry index between April and December 2024, compared to the same period the previous year.
Coal continues to be a significant contributor to India’s industrial growth, and the sector’s overall performance plays an important role in the country’s economy.
Coal and Railways
The coal sector is also crucial for the Indian Railways, providing about 50% of its freight revenue. Coal mining also creates jobs, employing nearly 4.78 lakh people directly.
Coal Production in India
India’s coal production reached an all-time high of 997.82 million tonnes in 2023-24, which is a big increase from 609.18 million tonnes in 2014-15. This shows the sector’s growth, with a steady annual increase of about 5.64% over the past decade. In just 2023-24, production went up by 11.71% compared to the previous year.
Policy Reforms and Private Sector Involvement
In 2020, India introduced a major reform by allowing private companies to bid for and operate coal mines. This has encouraged the use of modern technology and increased private sector participation in coal mining. A total of 107 coal mines have been auctioned off, with a combined capacity of 246.60 million tonnes per annum (MTPA), expected to bring in Rs 34,000 crore in annual revenue and provide jobs for around 3.33 lakh people.
As coal remains a crucial part of India’s energy and industrial sectors, the demand for coal is expected to continue rising in the coming decades. The government is working to balance the growth of renewable energy while also ensuring that coal meets the country’s energy needs and supports economic growth.
