More Stories

Informist, Thursday, Aug. 28, 2025

 

By Avishek Rakshit

 

KOLKATA - Even as India has set ambitious targets to scale up renewable energy generation and increase its reliance on electricity generated from solar, hydel, wind, and nuclear sources, coal will remain the backbone of the power generating sector in the country at least for the next two decades, Coal India Chairman and Managing Director P.M. Prasad said Thursday.

 

"Coal is expected to maintain its dominant role in the country's energy needs for next two decades at least despite the growing presence of renewables...Coal contributed to 35% of the world's energy generation and it is double in India," Prasad told the company's shareholders at Coal India's 51st Annual General Meeting.

 

Prasad's comments come at a time when demand for coal continues to remain tepid amid wide availability and softening global prices. Although Coal India is modifying its policies like end-use of coal, sale of power generated from its coal under long-term contracts with the power exchanges, removal of caps on sale of coal, and others to boost sales, the Maharatna company's sales continue to remain weak.

 

During Apr-Jul, Coal India's sales volume declined by 11.3% on year to 53.7 million tonnes and production plunged 15.6% on year to 46.4 million tonnes. 

 

Prasad said currently India has 485.8 gigawatt of installed power capacity of which 235.7 gigawatt capacity is from non-coal sources like hydel, wind, and nuclear. "This is a testimony to their (renewable power sector's) rapid transcendency. However, in actual generation, coal is much ahead," Prasad said.

 

During Apr-Jul, coal-based power accounted for nearly 87% or 483.6 billion kilowatt hour of the total 555.9 kilowatt hour electricity generated in the country. However, power generation from thermal plants that use coal declined by 7.3% on year, and generation from hydel sources increased 16.6% during Apr-Jul.

 

Prasad said coal will continue to play dominant role in India's power generation till the time renewable energy generation picks up substantially. India is targeting 500 gigawatt of non-fossil fuel-based energy capacity by 2030 and a its long-term vision is to have 1.8 terawatt of installed non-coal based capacity by 2047.

 

"India's per capita energy consumption is trailing the global average. The US and China are far ahead in consumption. If India wants to catch up with the world's per capita consumption in future, much of the energy requirement has to be met by coal till renewables come up in a more dominant manner than the present scenario," Prasad said.

 

According to Prasad, the abundance, availability, and affordability of coal makes it the preferred choice for power generation for developing countries like India which has ambitious plans to rapidly scale up its economic prowess. India has 389 billion tonne reserves of coal of which 212 billion tonne are in proven category, Prasad said later adding Coal India's objective will be to continue to provide coal at competitive prices for affordable power generation in an environment-friendly manner.

 

However, to derisk Coal India from being a pure coal miner and open new growth avenues, the company will keep exploring diversification projects. Prasad said. The company is already exploring rare earth mineral mining opportunities in Australia, Argentina, and Chile, and is also in discussion with Australia for a potential lithium ore mining project, Prasad said. Coal India has also emerged as the preferred bidder for two domestic graphite blocks.

 

At 1318 IST, shares of Coal India traded 0.4% higher at INR 374.15 on the National Stock Exchange. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vandana Hingorani

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.