India's Coal Consumption Set to Surge Amid Hydroelectricity Shortfall
COAL & MINING

India's Coal Consumption Set to Surge Amid Hydroelectricity Shortfall

Amid a significant drop in hydroelectricity production caused by inadequate rainfall, India is gearing up to increase its coal consumption to satisfy rising power demands, according to S&P Global Commodity Insights. This shortfall in hydroelectric power is anticipated to perpetuate India's reliance on coal imports.

During the fiscal year 2023-24, India's coal production approached the 1 billion metric ton milestone, reflecting the government's strategy to lessen dependency on imported coal. Nonetheless, the country has already imported approximately 85 million metric tons of thermal coal in 2024 due to the decline in hydroelectric output.

"The first half of 2024 could potentially show stronger coal imports than the second half amid a likely lower hydropower generation because of the impact of El Nino,? noted Pat See Khoo, Senior Analyst (Global Power and Renewables) at S&P Commodity Insights.

Despite India's national commitment to achieving carbon neutrality by 2070 and significant investments in renewable energy infrastructure, coal remains a cornerstone of the nation's energy mix. This is primarily due to the slow pace at which renewables are being integrated into the overall power generation framework.

Furthermore, India's focus on infrastructure development has substantially increased its demand for steel, subsequently driving up the need for coking coal. India has become the largest seaborne purchaser of coking coal, propelled by its expanding steel industry. The nation aims to boost its steel production capacity to 300 million metric tons annually by 2030, a 71% increase from current levels.

S&P Global Commodity Insights also predicts that India?s coking coal imports could reach 100 million metric tons by 2030, despite ongoing efforts to enhance domestic production and curtail imports.

As India navigates the challenges of energy security and environmental sustainability, the balance between coal reliance and the transition to greener energy sources remains a critical issue for the country's policymakers and industry stakeholders.

Amid a significant drop in hydroelectricity production caused by inadequate rainfall, India is gearing up to increase its coal consumption to satisfy rising power demands, according to S&P Global Commodity Insights. This shortfall in hydroelectric power is anticipated to perpetuate India's reliance on coal imports. During the fiscal year 2023-24, India's coal production approached the 1 billion metric ton milestone, reflecting the government's strategy to lessen dependency on imported coal. Nonetheless, the country has already imported approximately 85 million metric tons of thermal coal in 2024 due to the decline in hydroelectric output. The first half of 2024 could potentially show stronger coal imports than the second half amid a likely lower hydropower generation because of the impact of El Nino,? noted Pat See Khoo, Senior Analyst (Global Power and Renewables) at S&P Commodity Insights. Despite India's national commitment to achieving carbon neutrality by 2070 and significant investments in renewable energy infrastructure, coal remains a cornerstone of the nation's energy mix. This is primarily due to the slow pace at which renewables are being integrated into the overall power generation framework. Furthermore, India's focus on infrastructure development has substantially increased its demand for steel, subsequently driving up the need for coking coal. India has become the largest seaborne purchaser of coking coal, propelled by its expanding steel industry. The nation aims to boost its steel production capacity to 300 million metric tons annually by 2030, a 71% increase from current levels. S&P Global Commodity Insights also predicts that India?s coking coal imports could reach 100 million metric tons by 2030, despite ongoing efforts to enhance domestic production and curtail imports. As India navigates the challenges of energy security and environmental sustainability, the balance between coal reliance and the transition to greener energy sources remains a critical issue for the country's policymakers and industry stakeholders.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?