India's coal demand seen at 1.6 billion tonnes by 2030 as govt pushes market-driven trade: Coal Secretary

India's coal demand is expected to reach approximately 1.6 billion tonnes by 2030, according to the Coal Secretary, Vikram Dev Dutt. Speaking at the Global Commodity Conclave 2026 in Mumbai, Dutt highlighted the shift towards a more efficient and market-driven coal trading system as the country transitions from a scarcity to a surplus scenario.

The government aims to create a transparent marketplace for buyers and sellers through the coal exchange, which will eventually pave the way for a coal derivatives market. Domestic coal production surpassed 1 billion tonnes for the first time in 2024-25 and has remained above that level for two consecutive years. The government seeks to move beyond the current one-to-many sales model towards a many-to-many trading platform, enabling competitive price discovery and a standardized trading framework.

The coal exchange will also provide a central counterparty for clearing and settlement, improving risk management for both buyers and sellers. In addition, it will allow commercial and captive coal miners to access a wider market while enabling consumers to source coal from multiple domestic producers, reducing dependence on a single supplier.

The platform could eventually facilitate the development of a derivatives market, allowing producers and consumers to manage price risks and contribute to the convergence between physical and financial commodity markets.