Coal production volume India FY 2012-2024
The total volume of coal production in India amounted to around 998 million metric tons in the fiscal year 2024. Coal mining in India goes back over 200 years and their reserves remain among of the largest in the world.
The role of coal in India's energy supply
Coal dominates India's power supply, with a contribution of over 70 percent through thermal power plants. In 2023, the total coal consumption in the country amounted to over amounted to around 21.9 exajoules. In 2024, India's proved reserves of anthracite and bituminous coal amounted to around 220 billion metric tons.
COVID-19 impact on India's coal sector
India went into a total lockdown on March 25, 2020 making it the largest in the world, restricting 1.3 billion people. This was further extended until May 3, 2020. Coal imports into India saw a decline as a result of the pandemic. Power generation from thermal plants also witnessed a decline of about 40 percent year-on-year between March 25 and 30, 2020. With the consumption expected to grow because of people staying indoors, the drop in imports and reduced generation could create supply problems across the country.
Diversification within the coal sector is likely to play a crucial role moving forward. Commercial mining was opened to private investments by the government. A possibility of a 100 percent FDI was also allowed, thereby increasing the competition. The government also aimed to improve consumption from manufacturing and mining industries that created a weak demand earlier in the year due to the economic slowdown before the coronavirus.
