India Proposes 638M Tons of New Coal Capacity in 2025

India proposed a significant increase in coal production capacity, with plans for 638 million metric tons annually in new capacity for 2025, according to a report from Global Energy Monitor. This figure marks an increase from 329 million tons in the previous year and contributed to an 11% rise in global coal production proposals. The report, cited by Reuters, highlights India's strategy to ensure energy security amid rising electricity demand.

Domestic Production Goals

India aims to boost its domestic coal output to 1.15 billion metric tons for the current fiscal year and 1.5 billion metric tons by fiscal 2026/27. The increase is driven primarily by proposals from the states of Jharkhand and Odisha, which have doubled their coal mine proposals as part of the Ministry of Coal's ambitious plans. Despite a global slowdown in new coal mine openings due to declining demand, India’s initiatives reflect its ongoing reliance on coal to support economic growth and manage severe heatwaves exacerbated by climate change.

Global Context

Globally, new coal mine additions fell by nearly 40% last year, totaling 113 million tons annually, as reported by Global Energy Monitor. This decline was largely attributed to reduced activity in China and Australia. The report warns that India's surge in coal proposals contrasts sharply with predictions from the International Energy Agency, which anticipates a plateau in global coal demand by the end of the decade. Analysts express concern that this increase in coal mining could contradict global efforts to transition to renewable energy sources.

Related coverage: EU Could Cut Gas Demand by 25% by 2030, Study Says.

Based on reporting by: oilprice.com, theguardian.com