India’s Coal Strategy: A Central Element in Energy Policy Until 2047

As India embarks on its journey toward energy self-reliance, coal remains a cornerstone of its energy strategy, projected to persist in this role until at least 2047. This commitment was underscored when the nation achieved a remarkable milestone, surpassing one billion tonnes of coal production on March 20, 2025, a feat accomplished 11 days ahead of the previous year’s total.

During a recent conference organized by the Indian Chamber of Commerce, experts deliberated on the long-term energy security of the country and the evolving dynamics of the coal sector, even as global energy shifts toward renewables. Rajnath Ram, Programme Director of Energy at NITI Aayog, delivered a compelling keynote, emphasizing that while climate commitments are paramount, energy access and affordability must remain at the forefront of policy discussions. He pointedly noted the continued dominance of fossil fuels in both the global and Indian energy landscapes, with fossil energy consumption having risen over the past two to three years.

Despite the global trend toward cleaner energy sources, India’s energy mix still relies heavily on fossil fuels, with coal contributing 55 percent to the national energy portfolio and powering over 74 percent of electricity generation. As the world’s fifth-largest coal reserves holder and the second-largest consumer of coal, India’s reliance on this resource is undeniable.

Pankaj Satija, Chairman of the ICC National Expert Committee on Minerals and Metals, reiterated coal's crucial role, drawing comparisons to China’s ongoing capacity expansions and U.S. policies aimed at sustaining coal generation. However, he also highlighted significant challenges facing the Indian coal sector, such as low productivity and safety issues. Current productivity levels in India lag dramatically behind those in countries like the U.S. and China, prompting calls for reopening idle coal blocks and enhancing safety and skilling initiatives to elevate efficiency.

In this context, Vivek Bhatia, Managing Director and CEO of TKIL, argued for a modernization of domestic coal production, suggesting that a more environmentally efficient approach could be achieved through increased local mining rather than reliance on imports. He advocated for greater mechanization, including conveyor transport systems, to boost efficiency and minimize environmental impacts, especially during the monsoon season. Additionally, he highlighted the untapped potential of underground mining as a means to reduce the necessity for new greenfield developments.

Both policymakers and industry leaders acknowledged the potential of coal gasification as a transitional solution, aimed at decreasing dependency on imported natural gas while promoting domestic value addition. Ram confirmed the government's commitment to advancing gasification technologies, despite existing commercialization challenges, and emphasized the need for financial and technical support to make it viable.

Furthermore, Bhatia discussed the promise of integrating carbon capture and green hydrogen technologies to facilitate cleaner coal utilization. The consensus from the forum was clear: while India will continue to expand its renewable energy capabilities, coal is expected to remain a foundational fuel for decades. The focus now must be on modernizing coal usage through technological advancements, safety enhancements, and emissions reductions, ensuring its coexistence with the nation’s climate objectives.