India’s coal demand is likely to reach 1462 MT by 2030, and 1755 MT by 2047, Ministry of Coal said in its release here on Monday.
Despite commendable strides in promoting renewable energy sources, the sheer growth in electricity demand necessitates a continued reliance on thermal power, with projections indicating its share to be 55 per cent by 2030 and 27 per cent by 2047, it said.
The coal sector’s remarkable growth highlights its ability to meet the increasing demand from the energy and manufacturing industries.
With initiatives like coal gasification, the sector is advancing toward India’s goal of achieving 100 MT of coal gasification by 2030, promoting cleaner and more efficient energy use, the release by Ministry of Coal highlighted, stating that it remains steadfast in its commitment to boosting domestic coal production, reducing import dependency, and ensuring national energy security.
As a key driver of economic progress, the sector continues to play a crucial role in the realization of Viksit Bharat, contributing to a self-reliant and developed India.
Notably, in the year 2023-24, the budget allocation and expenditure for Central Sector Schemes in the coal sector had a total outlay of Rs 843.5 crores and an expenditure of Rs 299.09 crores.
Also, India’s coal production has reached an all-time high of 997.82 million tonnes (MT) in FY 2023-24, marking a significant rise from 609.18 MT in FY 2014-15, with a CAGR of 5.64 per cent over the past decade. In fact, the FY24 alone saw production surging by 11.71 per cent compared to the previous year.
According to the Index of Eight Core Industries (ICI), the coal sector registered the highest growth of 5.3 per cent in December last, reaching 215.1 points compared to 204.3 points in December 2023.
During April-December 2024, the coal industry index increased to 177.6 points from 167.2 points in the previous year, marking a 6.2 per cent growth, which is the highest among all core industries.
Further, the cumulative coal dispatch from April 2024 to this January has risen to 843.75 MT, marking 5.73 per cent increase from 798.02 MT recorded during the corresponding period of the previous year.
Notably, coal sector has significantly reduced its import dependency in FY 2023-24, with only 110 MT classified as non-substitutable imports, by increasing domestic coal production.
As per the data, between April and November 2024, coal imports declined by 5.35 per cent, saving approximately $3.91 billion ( Rs 30,007.26 crore).