TFP Bureau, New Delhi, June 28; 2024: India, endowed with the fifth-largest coal reserves globally and the second-largest consumer of coal, is making significant strides towards energy self-reliance. The country’s fast-growing economy has traditionally relied on coal imports to meet industrial demands, particularly for coking coal and high-grade thermal coal, which are scarce domestically. However, India boasts abundant reserves of medium and low-grade thermal coal, essential for fulfilling domestic demand.
Over the past decade, concerted efforts to bolster domestic coal production have led to a notable shift. Between the fiscal years 2004-05 and 2013-14, the compound annual growth rate (CAGR) of coal production was 4.44%. This figure increased to approximately 5.63% from fiscal years 2014-15 to 2023-24.
In stark contrast, the CAGR of coal imports, which was a substantial 21.48% from fiscal years 2004-05 to 2013-14, dropped dramatically to just 2.49% from fiscal years 2014-15 to 2023-24. Furthermore, the CAGR of the share of imported coal, which stood at 13.94% between fiscal years 2004-05 and 2013-14, plummeted to -2.29% in the following decade.
This significant reduction in coal imports is attributed to India’s strategic focus on optimizing indigenous coal resources and leveraging innovative technological solutions. These efforts are part of the nation’s broader push towards self-reliance, or Atmanirbhar, in energy security.
