{"id":44186,"date":"2025-05-27T20:35:27","date_gmt":"2025-05-27T15:05:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44186"},"modified":"2025-05-27T20:35:47","modified_gmt":"2025-05-27T15:05:47","slug":"coal-sector-india-sustainable-growth-global-leadership","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/27-05-2025\/coal-sector-india-sustainable-growth-global-leadership","title":{"rendered":"Coal Sector in India: A Strategic Engine for Sustainable Growth and Global Leadership"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Coal has long been the backbone of India&#8217;s energy sector, fueling industries, power plants, and economic growth. However, the global shift towards sustainability has necessitated a transformation in how coal is utilized.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Brief about the India\u2019s Coal Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is the<strong> 5th largest in coal reserves <\/strong>and <strong>2nd largest coal consumer globally.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Per capita coal energy consumption<\/strong> remains lower than China, the USA, or OECD nations.<\/li>\n\n\n\n<li><strong>Coal\u2019s share in installed capacity<\/strong> has decreased from <strong>60% in 2014\u201315 to 47%<\/strong> today.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It has <strong>crossed the 1 Billion Tonne<\/strong>, both production and dispatch in FY25.\n<ul class=\"wp-block-list\">\n<li>It reinforces <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/01-04-2025\/energy-statistics-india-2025\"><strong>India\u2019s energy security<\/strong><\/a>, ensures a <strong>reliable and cost-effective power supply<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The coal industry has contributed significantly to<strong> employment<\/strong>, supporting <strong>over 5 lakh workers<\/strong> across more than <strong>350 coal mines.<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Significance of Coal Sector in India<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Backbone of India\u2019s Energy Security:<\/strong> Coal powers 46.88% of India\u2019s total installed power capacity (as of Nov 2024), making it the single largest contributor to electricity generation.\n<ul class=\"wp-block-list\">\n<li>Despite the rise of solar and wind energy, coal is projected to retain 55% share of power generation by 2030.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Role in Core Industries:<\/strong> Coal dependent steel industry uses coking coal in blast furnaces \u2014 India aims to produce 140 MT of domestic coking coal by 2029\u201330 under Mission Coking Coal.<\/li>\n\n\n\n<li><strong>Economic Engine of Mineral-Rich Regions:<\/strong> Coal production contributes over \u20b970,000 crore annually through royalties, GST, and <strong>District Mineral Foundation (DMF) funds<\/strong>.<\/li>\n\n\n\n<li><strong>Major Employment Provider: <\/strong>The coal sector employs around 5 lakh workers across 350+ mines.<\/li>\n\n\n\n<li><strong>Railway Revenue Pillar:<\/strong> Coal is the single largest source of freight revenue for Indian Railways, contributing 49% of total freight earnings (FY 2022\u201323).<\/li>\n\n\n\n<li><strong>Corporate Social Responsibility and Nation Building:<\/strong> Coal PSUs spend over \u20b9600 crore annually on CSR \u2014 funding schools, hospitals, skill centers, and community welfare in backward regions.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Geographical Distribution of Coal in India<\/strong><br>&#8211; <strong>Gondwana Coals:<\/strong> About<strong> 98% of total coal <\/strong>in India is based on Gondwana time;<br>1. Majorly found in Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Andhra Pradesh etc.<br>2. <strong>Major Gondwana Coal Mining Centres:<\/strong><br>(a). <strong>Damodar Valley:<\/strong> Daktonganj, Bokaro, Jharia, Dhanbad, Raniganj, Durgapur<br>(b). <strong>Son Valley:<\/strong> Associated with North Koel river, Singrauli<br>(c). <strong>Mahanadi Valley:<\/strong> Associated with rivers like Hasdeo, Ib, South Koel etc, Korba, Jhilmil, Talcher<br>(d). <strong>Godavari and Wardha Valley:<\/strong> Singreni, Kotagundam (Telangana), Kamptee Valley (Nagpur, Maharashtra)<br><strong>Types of Coal in India<\/strong><br>&#8211; <strong>Anthracite:<\/strong> Highest carbon content, rare in India.<br>&#8211; <strong>Bituminous:<\/strong> Most abundant and commonly used for power generation.<br>&#8211; <strong>Sub-bituminous:<\/strong> Higher heating value than lignite.<br>&#8211; <strong>Lignite<\/strong>: Low-grade coal, used mainly in power plants near mining sites.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td colspan=\"2\"><strong>Important Coal Fields<\/strong><\/td><\/tr><tr><td><strong>Coal Fields &amp; Location<\/strong><\/td><td><strong>Importance<\/strong><\/td><\/tr><tr><td>Jharia Coalfield, Jharkhand<\/td><td>Known for high-quality coking coal.<\/td><\/tr><tr><td>Raniganj Coalfield, West Bengal<\/td><td>India&#8217;s oldest coalfield, primarily producing non-coking coal.<\/td><\/tr><tr><td>Talcher Coalfield, Odisha<\/td><td>One of the largest coal reserves in India.<\/td><\/tr><tr><td>Korba Coalfield, Chhattisgarh<\/td><td>A major source of thermal coal.<\/td><\/tr><tr><td>Singrauli Coalfield, Madhya Pradesh &amp; Uttar Pradesh<\/td><td>Important for power generation.<\/td><\/tr><tr><td>Bokaro Coalfield, Jharkhand<\/td><td>Produces both coking and non-coking coal.<\/td><\/tr><tr><td>Singareni Coalfield, Telangana<\/td><td>Major coal field in South India<\/td><\/tr><tr><td>Wardha Valley Coalfield, Maharashtra<\/td><td>Significant for industrial use.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges India&#8217;s Coal Sector Facing<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Coal Supply Shortages:<\/strong> India has experienced<strong> periodic coal shortages,<\/strong> leading to power crises.\n<ul class=\"wp-block-list\">\n<li>Factors such as stagnating domestic production, transportation bottlenecks, and reduced imports have contributed to supply constraints.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Environmental and Sustainability Issues:<\/strong> These include deforestation, air pollution, and carbon emissions.\n<ul class=\"wp-block-list\">\n<li>While India is pushing for coal gasification and cleaner mining technologies, the transition remains slow.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Dependence on Coal Imports:<\/strong> Despite having the <strong>fifth-largest coal reser<\/strong><strong>ves<\/strong>, India <strong>still imports coal<\/strong> to meet demand.\n<ul class=\"wp-block-list\">\n<li>High import costs and global price fluctuations pose economic challenges.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure and Transportation Bottlenecks:<\/strong> Coal transportation relies heavily on railways, which often face congestion and delays.\n<ul class=\"wp-block-list\">\n<li>Improving logistics and infrastructure is crucial for ensuring timely coal supply.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Social and Labor Concerns: <\/strong>Coal mining employs over 5 lakh workers, but safety concerns, displacement of communities, and inadequate rehabilitation programs remain pressing issues.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recent Key Reforms in the Coal Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Commercial Coal Mining (2020):<\/strong> It allows private players to participate in coal auctions. It increased competition, improved efficiency, and attracted investments, leading to higher production and employment generation.\n<ul class=\"wp-block-list\">\n<li>The <strong>Coal Bearing Areas Act of 1957<\/strong> signaled state control but lacked trust in private innovation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Coal Mines Special Provisions Act (CMSP Act 2015):<\/strong> It was enacted to address the cancellation of coal block allocations by the Supreme Court.\n<ul class=\"wp-block-list\">\n<li>It introduced a transparent auction process, encouraging private sector involvement and generating revenue for the government.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation (revised in 2025):<\/strong> It ensures greater flexibility, wider eligibility, and better accessibility to coal, supporting India&#8217;s energy needs.<\/li>\n\n\n\n<li><strong>Single Window E-Auction Mechanism:<\/strong> It removes market distortions, increases operational efficiency, and ensures fair pricing for all sectors.<\/li>\n\n\n\n<li><strong>Revival of Abandoned Coal Mines:<\/strong> India has initiated policies to reopen abandoned and discontinued coal mines through private sector participation.\n<ul class=\"wp-block-list\">\n<li>It aims to optimize coal resources while ensuring environmental sustainability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Push for Underground Coal Mining:<\/strong> Incentives like waiving upfront payments and reducing revenue share requirements, to encourage private investment and adoption of advanced mining technologies.<\/li>\n\n\n\n<li><strong>Coal Gasification and Sustainable Mining:<\/strong> India has set a target<strong> <\/strong>to<strong> gasify 100 million tonnes of coal by 2030<\/strong>, reducing carbon emissions and fostering cleaner energy solutions.\n<ul class=\"wp-block-list\">\n<li>Financial support and tax incentives have been introduced to accelerate coal gasification projects.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tech-Driven Revolution: Coal Exchange and DigiCoal<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India to launch its <strong>first coal trading exchange<\/strong> for seamless, transparent access and pricing.<\/li>\n\n\n\n<li><strong>DigiCoal initiative<\/strong> to digitize coal mines:\n<ul class=\"wp-block-list\">\n<li><strong>5G<\/strong>, <strong>AI monitoring<\/strong>, <strong>GPS tracking<\/strong>, <strong>drone surveys<\/strong><\/li>\n\n\n\n<li><strong>Digital twins<\/strong> for operational safety and efficiency.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Future Vision: Viksit Bharat 2047<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>From <strong>1.10 MWh per capita electricity consumption<\/strong> today to matching or exceeding global averages.<\/li>\n\n\n\n<li>India\u2019s journey to a <strong>$5 trillion economy by 2030<\/strong> and <strong>$35 trillion by 2047<\/strong> depends on reliable energy access.\n<ul class=\"wp-block-list\">\n<li><strong>Coal will remain pivotal<\/strong>, complemented by renewables.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2131373\" target=\"_blank\" rel=\"noopener\">Source: PIB<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">Coal has long been the backbone of India&#8217;s energy sector, fueling industries, power plants, and economic growth. However, the global shift towards sustainability has necessitated a transformation in how coal is utilized.<\/li>\n<p><\/p>\n<h3><strong>Future Vision: Viksit Bharat 2047<\/strong><\/h3>\n<li class=\"ms-5\">From 1.10 MWh per capita electricity consumption today to matching or exceeding global averages.<\/li>\n<li class=\"ms-5\">India\u2019s journey to a $5 trillion economy by 2030 and $35 trillion by 2047 depends on reliable energy access.<\/li>\n<li class=\"ms-5\">Coal will remain pivotal, complemented by renewables.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/27-05-2025\/coal-sector-india-sustainable-growth-global-leadership\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44186","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44186"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44186\/revisions"}],"predecessor-version":[{"id":44222,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44186\/revisions\/44222"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}