India's Coal Demand Estimated to Hit 1,755 MT by 2047
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Synopsis
The coal demand in India is predicted to grow to 1,462 MT by 2030 and reach 1,755 MT by 2047. This report highlights the significance of coal in India's energy sector, its robust growth, and the impact of recent policy reforms.
Key Takeaways
- Projected coal demand: 1,462 MT by 2030
- Estimated demand: 1,755 MT by 2047
- Coal contributes 55% to the energy mix
- Thermal power accounts for over 74% of power generation
- Record production: 997.82 MT in FY 2023-24
New Delhi, Feb 10 (NationPress) The coal demand in India is anticipated to escalate to 1,462 million tonnes (MT) by 2030 and 1,755 MT by 2047, as reported by the government on Monday.
With the fifth-largest geological coal reserves worldwide and being the second-largest consumer, coal remains a crucial energy source, contributing to 55 percent of the national energy mix.
In the last decade, thermal power, primarily powered by coal, has consistently made up over 74 percent of total power production.
Despite significant progress in the promotion of renewable energy, the rapid rise in electricity demand necessitates ongoing dependence on thermal power, with forecasts suggesting its share will be 55 percent by 2030 and 27 percent by 2047, according to the Ministry of Coal.
The Index of Eight Core Industries (ICI) reported that the coal sector experienced the highest growth rate of 5.3 percent in December 2024, reaching 215.1 points compared to 204.3 points in December 2023.
From April to December 2024, the coal industry index rose to 177.6 points from 167.2 points the previous year, achieving a growth rate of 6.2 percent, the highest among all core industries, according to government statistics.
The Combined Index of Eight Core Industries showed an overall increase of 4.0 percent in December 2024 compared to the preceding year.
The index for April-December 2024 climbed by 4.2 percent over the same timeframe in FY 2023-24, underscoring coal's vital role in industrial growth.
Moreover, the coal sector generates approximately 50 percent of freight revenue for Indian Railways and directly employs nearly 4.78 lakh individuals.
India's coal production achieved a record high of 997.82 million tonnes (MT) in FY 2023-24, a significant increase from 609.18 MT in FY 2014-15, reflecting a compound annual growth rate (CAGR) of 5.64 percent over the last decade.
In FY 2023-24 alone, production surged by 11.71 percent compared to the prior year.
A pivotal policy reform occurred with the introduction of commercial coal mine auctions in 2020, facilitating private sector involvement and the adoption of modern technologies.
Since the commencement of these auctions, a total of 107 coal mines have been auctioned under commercial coal mine auctions, with a combined PRC of approximately 246.60 MTPA, generating an estimated annual revenue of Rs 34,000 crore and creating employment for around 3,33,000 individuals.
