Under the Coal Logistics Policy and Plan (2024), India aims to achieve 1.5 BT coal production annually by FY2030.

Significance for India

• Strengthens energy security: Coal still contributes ~74% of electricity generation, ensuring reliable base-load power amidst the vulnerability of other energy sources such as natural gas (West Asia conflicts), uranium (restricted supplies), and renewable energy (critical minerals dominance of China).
• Supports core industries: such as power, steel and cement, which are critical drivers of infrastructure development and economic growth.
•  Import substitution: Conserving foreign exchange and improving the current account balance.

Challenges of reliance on coal for India

• Global Pushback against Coal: Developed countries are pushing for phasedown of coal, creating pressure on financing and long-term viability.
• Import Dependence: Due to high demand and poor quality (high ash content and low calorific value) of its domestic coal, India imported about 248.5 million tonnes of coal in 2024–25.
• Other Issues: Persistent challenges such as land acquisition delays, environmental degradation due to open-cast mining, and rehabilitation concerns.