India plans major coal mining, power and processing expansion
India plans to lift coal-fired generating capacity from about 224 GW to about 315 GW by 2035-2036 and annual coal output to 1.58 billion tonnes by 2030. The expansion includes underground mining, gasification and coal-to-chemicals projects, while stronger domestic supply could limit import demand.
Coal capacity rises with electricity demand
India is preparing a broad expansion of coal mining, coal-fired generation and downstream processing as electricity demand grows and round-the-clock renewable supply remains constrained. Aadhar Raj, deputy secretary at India’s Ministry of Power, said at an industry event organized by the Federation of Indian Chambers of Commerce and Industry that thermal power would remain part of the country’s energy system for a long time. He identified reliable supply as the first priority, followed by affordability, and linked energy security to national security.
India plans to increase coal-fired generating capacity from about 224 GW to about 315 GW by 2035-2036. WNP reports that the government also aims to raise annual domestic coal production to 1.58 billion tonnes by 2030. The strategy contrasts with the European Union’s decarbonization policy, but reflects India’s focus on supplying electricity to all households around the clock while supporting economic growth.
The immediate market picture shows why fuel availability remains critical. Coal-fired electricity generation rose 20% year on year to 55.9 TWh during September 1-15. Output growth exceeded the increase in domestic coal production, and stocks at thermal power stations fell from 29.12 million tonnes at the end of August to 24.04 million tonnes on September 14.
Domestic recovery weighs on imports
Coal India, which accounts for about three-quarters of national production, mined 25.98 million tonnes during September 1-15, up 7% from a year earlier, according to Argus. Conditions improved as rainfall eased in major mining regions, supporting extraction, coal handling and transport after total Indian production had fallen 3.8% year on year to 66.87 million tonnes in August.
The recovery is intended to rebuild inventories before the higher-demand period from October through December. Greater domestic availability may also reduce interest in imported coal while international prices remain elevated. Kpler estimated that India could receive 12.54 million tonnes of seaborne coal in September, but WNP said Indian buyers seeking post-monsoon cargoes had largely withdrawn after prices rose amid tighter supply.
Thermal coal imports fell 13% year on year to 16.83 million tonnes between April and July, from 19.28 million tonnes a year earlier. The decline reflected lower purchases by power plants that blend imported material with domestic fuel. Demand is nevertheless not limited to utilities: former deputy economy minister Jerzy Markowski told WNP that expanding Indian steel production would also increase consumption of coke and therefore demand for coking coal.
Gasification and underground mining create equipment demand
Coal India is extending its strategy beyond combustion. Reuters, as cited by WNP, reports that India is moving toward coal gasification, while the state-controlled producer is involved in four gasification and coal-to-chemicals projects. These include Talcher Fertilizers, designed for annual production of 1.27 million tonnes of urea, and Bharat Coal Gasification & Chemicals, with planned capacity of 0.66 million tonnes of ammonium nitrate per year.
The projects seek to use India’s domestic coal resources to replace some imported oil and gas in petrochemical production. Coal-based fertilizer output is also intended to support food security. Bloomberg estimates that coal mining employs about 750,000 people in India, making the industry an important employer across several states.
WNP identifies underground mining as another opening for foreign technology suppliers as opportunities for additional surface mining become more limited. Polish and Indian companies formed the InfraDeep initiative at the end of last year to offer integrated mine-development capabilities. Participants include Lubelski Węgiel Bogdanka, Patentus, Martech-Plus, Węglokoks and Grupa Powen-Wafapomp. Coal India is also investing in automation and Mining 4.0 systems, while pursuing renewable energy and storage: it has commissioned about 550 MW of solar capacity and is developing a Sustainable Energy Centre at the Indian Institute of Technology Madras at a cost of more than $9 million.