Mint Explainer: Coal is here to stay, but India needs to make its use cleaner

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Tata Power, Adani Power and Reliance Power. India’s installed power capacity as of May 2023 was about 418 GW. Of this, the overall capacity of fossil-based power plants was about 237 GW, with the share of coal at 205 GW.

Thus, 49% of the total installed power generation capacity is based on coal. Given India’s growth potential and rising demand for power, the demand for coal is projected to rise from the current requirement of nearly one billion tonnes to 1.5 billion tonnes by 2029-30. Domestic production is less than demand, necessitating imports.

With Coal India ramping up production in the past year, import of thermal coal for blending at power plants fell 44% in April-November 2023, government data show. Coal is also used for non-power uses such as in the manufacture of steel and cement. Steel plants use coking coal in blast furnaces, a bulk of which is imported from countries such as Australia and Russia.

As a signatory of the 2016 Paris Agreement, India has committed to reducing the emissions intensity of its GDP by 45% from the 2005 levels by 2030 and limiting its cumulative installed power capacity from non-fossil fuel sources to 50%. As the second largest user of coal, measures adopted by India to reduce emissions can contribute to global efforts to mitigate the effect of climate change. However, as a developing nation with rapidly rising energy demand, India has to find ways to balance development with coal usage.

Gasification of coal is seen as a way forward for the sustainable use of fossil fuels. India has a National Coal Gasification Mission in place and intends to achieve 100 million tonnes of gasification by 2030. The government has announced incentives such as a 50% rebate for sharing of revenues for