India’s domestic coal production is projected to reach a formidable 1.15 billion tonnes in the fiscal year (FY) 2026, a surge expected to meet over 80% of the nation’s burgeoning energy demand. While this growth, driven by policy reforms and accelerated mine auctions, signifies a move towards energy self-sufficiency, it presents a complex paradox for India’s ambitious net-zero emissions target by 2070. The continued reliance on coal, particularly for the power sector, underscores the critical challenges and the urgent need for a more aggressive pivot towards truly sustainable, eco-friendly energy alternatives to decarbonise India’s rapidly expanding economy.
According to a recent report by CareEdge Advisory & Research, India’s domestic coal production reached a record 1.0476 billion tonnes in FY 2025, demonstrating a compound annual growth rate (CAGR) of approximately 10% over the last five years. This robust expansion is attributed to structural policy reforms and increased coal-fired power demand. Simultaneously, total coal consumption escalated to 1,270.0 million tonnes in FY 2025, reflecting an 8.3% CAGR, primarily fueled by rising electricity demand across industrial, commercial, and rural sectors. The power sector alone consumed 82% of domestic coal dispatches in FY 2025, cementing its position as the largest consumer.
This escalating reliance on coal, despite India’s significant renewable energy potential, presents a formidable hurdle to its climate commitments. While energy security is paramount for a developing nation, the dominance of fossil fuels carries substantial environmental costs, including increased greenhouse gas emissions and air pollution, directly contradicting the vision of zero net carbon and eco-friendly cities. The report implicitly acknowledges this tension by citing “delays in the adoption of renewable energy in certain regions” as a factor in sustained coal demand, pointing to systemic challenges in integrating clean energy into the national grid.
The journey towards equitable and gender-neutral cities also intersects with energy policy. Reliable and affordable energy access is a fundamental right, enabling economic participation and enhancing quality of life for all citizens. However, a disproportionate reliance on a single, polluting energy source can have adverse health impacts on communities near mining and power generation sites, often rural and vulnerable populations. A truly equitable energy transition would prioritise distributed renewable energy solutions, empowering communities and fostering localised economic opportunities while simultaneously mitigating environmental degradation.
As India firmly progresses towards coal self-sufficiency, as highlighted by Nitu Singh, Associate Director at CareEdge Advisory & Research, the imperative to accelerate the energy transition becomes even more pressing. Achieving the 2070 net-zero target will necessitate not just continued growth in renewables but also a concerted effort to decouple economic expansion from coal consumption. This requires significant investment in grid modernisation, energy storage solutions, and innovative financing mechanisms for renewable projects, coupled with robust policies that incentivise decarbonisation across all sectors. India’s path forward is a delicate balance between meeting immediate energy needs and safeguarding a sustainable, healthy future for its burgeoning population.
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