The Centre has earmarked ₹5,925 crore for the exploration of coal and lignite over the next five-year period starting FY27.
- Government is also taking steps to reduce the polluting impact of coal based energy.
Status of Coal Sector in India
- Coal Reserves: India holds the 5th largest coal reserves in the world, with a total estimated coal resource of about 401 billion tonnes as of April 2025.
- Coal production: It has doubled to 1047.523 Million Tonne (MT) in FY 2024-25 from 565.77 MT in FY 2013-14.
- Future Outlook: Demand for coal is projected to rise to approximately 1.5 billion tonnes by 2030.
Why is coal so significant for India?
- Primary Energy Source: Coal plants still supply 72% of electricity. Despite its pollution related challenges, it ensures a reliable base-load 24x7.
- Support to Critical Industries: Coal fuels steel, cement, and heavy industries, driving economic growth.
- For instance, it is central to the National Steel Policy’s target of 300 MT of crude steel by 2030.
- Energy Security: Domestic coal production reduces imports, saving approx. $8 billion in 2024-25.
- Economic Development: Coal expansion creates jobs and attracts major investments.
Steps taken to reduce polluting impact of coal
|
