- Coal anchors India’s energy security
- Self-reliance needs mechanisation, faster clearances
Coal continues to be the backbone of India’s energy ecosystem. Despite rapid strides in renewable energy, nearly seven out of every ten units of electricity consumed in the country still come from coal-fired power plants. This reliance underscores coal’s irreplaceable role in ensuring energy security at a time when global geopolitics, trade disruptions, and carbon transition policies are reshaping energy markets worldwide.
Against this backdrop, India recorded a landmark achievement last year crossing one billion tonnes of coal production for the first time. The milestone reflects years of consistent policy reforms and operational improvements across both public and private mining enterprises.
Policy reforms: Building blocks of self-reliance
The government’s coal sector policies have been pivotal in driving domestic growth. Over the past decade, reforms have focused on opening the sector to private players, streamlining approvals, and modernizing operations. Key measures include:
- Single-window clearances for project approvals.
- MMDR Act amendments to ease allocations and promote transparency.
- Commercial coal mining auctions to diversify supply beyond public sector dominance.
- Project management and inter-ministerial coordination to resolve bottlenecks.
- Logistics modernization, including mechanized loading and dedicated freight corridors.
These steps have acted as a “Sanjeevani” for the sector, enabling India to cut imports from 265 million tonnes in 2022 to 241 million tonnes in 2023, even as domestic demand continued to rise.
Persistent bottlenecks in import substitution
Despite this progress, industry experts flagged several obstacles in fully replacing imports:
- Quality mismatch between domestic coal grades and the higher calorific coal required for DRI plants and coastal power stations.
- Transport and evacuation constraints, limiting timely delivery from pithead mines to consumption hubs.
- Slow operationalization of auctioned mines, with clearances often delayed.
- Limited beneficiation capacity, restricting supply of washed and consistent-grade coal.
Mechanization and quality assurance: The next frontier
Panelists highlighted that the next leap in coal security must come from mechanization and beneficiation. Mechanized mining and automated sampling systems can ensure reliable and standardized quality, reducing dependence on imports. Expanding beneficiation plants closer to mines will further help supply consistent grades. Additionally, scaling up high-grade coal output from blocks such as Rajmahal and Kusmunda can address critical industrial needs.
Decarbonization: Balancing growth with climate goals
India’s commitment to net-zero by 2070 demands parallel focus on clean coal technologies and renewable energy expansion. Initiatives underway include:
- Coal gasification projects for syngas, methanol, and DRI production.
- Pilot projects on carbon capture and utilization (CCU).
- Accelerated renewable energy deployment, already contributing ~20% of power generation.
However, panelists cautioned that coal will remain a mainstay of India’s power sector for decades, making it critical to balance decarbonization strategies with energy security needs.
Outlook: From import dependence to energy self-sufficiency
India aims to raise domestic production to 1.5 billion tonnes by 2030, with both Coal India Ltd. and commercial miners playing a key role. Achieving this target hinges on three priorities:
- Expediting mine clearances for auctioned blocks.
- Investing in multimodal transport to ease evacuation bottlenecks.
- Ensuring reliable quality through mechanization and beneficiation.
While some import dependence particularly for coastal power plants will persist, India is steadily moving towards a more resilient and self-reliant coal supply system. This not only reduces the economic burden of imports but also positions the country to manage its energy transition in a more secure and sustainable manner.
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