Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Coal mining industry in India - statistics & facts
India's coal mining industry has played a crucial role in propelling the country's economic development. The commercial energy requirements in India, the world’s most populous nation, are fulfilled by coal, which serves as the primary source for power generation as well as the production of steel and cement. Having one of the world's largest coal sectors, India is the second largest producer and consumer of coal after China. Even as a leading coal producer, India continues to import coal to meet its high domestic demand. The main coal-producing state-owned enterprises in India include Coal India Limited and its subsidiaries, along with NLC India Limited, which also oversee the production of lignite in the country.
India's coal reserves
In the fiscal year 2023, India's volume of proved coal reserves amounted to approximately 207.4 billion metric tons, with non-coking coal reserves exceeding those of coking coal and lignite. The location of India's coal reserves (including both coking and non-coking coal) is primarily in Odisha, Jharkhand, and Chhattisgarh. The south-central and eastern states together hold more than 90 percent of the nation's total coal reserves. Conversely, significant lignite deposits are situated in the southern and western parts of the country, chiefly in Tamil Nadu, Rajasthan, and Gujarat.Coal mining in India
Coal demand in India reached approximately 1.09 billion metric tons in the fiscal year 2023, while domestic coal production was about 893 million metric tons that year. India's importation of roughly 240 million metric tons of coal, primarily from Indonesia, Australia, South Africa, and Russia, highlights the necessity for increased domestic output. Coal India Limited, responsible for over 80 percent of the national coal output, plays a significant role in this development. In the fiscal year 2023, Coal India Limited's coal production contributed 703.2 million metric tons to the total domestic supply, employing close to 239,000 workers.India's need for coal
Over the past decade, coal consumption in India has almost doubled. Coal is the predominant source of energy in the country's overall power generation, accounting for approximately 74 percent of India's total electricity production as of 2022. In essence, coal consumption is expected to remain an important component of India's energy landscape in the foreseeable future. This is primarily because it is a readily accessible local resource that is significantly less expensive than imported fuels such as crude oil and natural gas.
