Domestic coal production shielding India from global price swings: Coal secretary

Domestic coal production is safeguarding India's economy from global price fluctuations, even as the energy sector grapples with challenges, said Coal Secretary Vikram Dev Dutt. During a stakeholder consultation in Goa, Dutt highlighted that the past eight months had put the sector to the test. When the conflict in West Asia disrupted natural gas and liquefied petroleum gas supplies from late February, coal reserves at mines and power plants enabled the government to ensure consistent power supply, he noted.

Dutt expressed gratitude to the industry for this support. However, he cautioned that the pressure has not subsided. The International Energy Agency predicts gas markets will remain tight through 2027. Asian spot LNG averaged USD 17.5 per million British thermal units in the second quarter, up 45 percent from a year earlier; global coal demand is forecast to reach a record 8.94 billion tonnes in 2026.

Each tonne produced domestically shields the economy from these market swings, Dutt asserted. He added that domestic demand indicates the same trend. NITI Aayog projects India's coal demand to rise from 1.25 billion tonnes in 2025 to over 2.6 billion tonnes by 2050 under current policies, and stay above 1.8 billion tonnes even with a net-zero pathway as sectors like steel, cement, and power continue to expand.

India generated 1,041 million tonnes of coal in 2025-26, and coal remains the primary source of electricity generation, accounting for over 70 percent. Dutt elaborated that the ministry's commitments encompass various aspects, including sustainability, community welfare, and technological progress. He emphasized the importance of scientific mine closure, stressing the need to transform mined-out areas into vibrant, co-created habitats that promote ecological restoration alongside community well-being and long-term social stability.