Coal and Mining Sector

India’s Coal Dependence rose to 79%

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Share of Coal in India's Energy Basket

Why in the News?

According to MoSPI’s Energy Statistics in India 2025, coal contributed 79% to India’s total energy generation, amounting to 16,906 petajoules (PJ), marking a 2% increase from the previous year.

Share of Coal in India’s Energy Basket:

  • Dominance: As of 2023-24, coal contributed 79% to India’s total energy generation, amounting to 16,906 petajoules (PJ), marking a 2% increase from the previous year.
  • Production Growth: In 2023-24, India saw a 12% increase in coal production, continuing a strong growth trajectory from the 15% growth in 2022-23, marking one of the fastest growth rates in the past decade.
  • Dependence on Imports: Despite a surge in domestic production, India remains 26% dependent on coal imports, although this has decreased from 31% in 2019-20.

India’s Total Energy Basket:

  • Coal: Discussed above.
  • Nuclear Energy: Nuclear power contributes approximately 1.7% to the total electricity generation capacity, with an installed capacity of about 8,180 MW as of late 2024.
  • Crude Oil: The share of crude oil has decreased from 11% in 2014-15 to 6% in 2023-24, indicating a long-term decline in its contribution to India’s energy mix.
  • Natural Gas: Similarly, natural gas’s share has decreased from 9% in 2014-15 to 7% in 2023-24, reflecting a shift away from natural gas in the energy mix.
  • Renewable Energy: Despite significant investments and efforts by the government, renewable energy sources (solar, wind, hydro, and nuclear) contribute only 7% to the total energy mix in 2023-24, showing slow but steady growth over the past decade.

Shift Towards Renewable Energy:

  • Total Contribution: Renewable sources contributed 7% of India’s total energy production in 2023-24, a modest increase from 6% in 2014-15. While this share remains small, the absolute production from renewables has grown at a 6.76% CAGR over the past 10 years.
  • Growth in Solar and Wind Energy:
    • The generation from solar, wind, and other renewable sources (excluding large hydro) has surged by 210% over the last decade, increasing from 6,555 KToE in FY15 to 20,279 KToE in FY24.
  • Key Renewable Energy Potential:
    • Wind energy holds the largest share of India’s renewable potential at 55.17%, with an estimated potential of 11,63,856 MW.
    • Solar energy is the second-largest contributor at 35.50%, with a potential of 7,48,990 MW.
    • Large hydro contributes 6.32% of the renewable energy potential with 1,33,410 MW.
  • Future Targets:
    • India added 3.4 GW of new wind capacity in 2024, with Gujarat (1,250 MW), Karnataka (1,135 MW), and Tamil Nadu (980 MW) leading the way.
    • India is aiming for 500 GW of non-fossil fuel-based energy capacity by 2030, which would significantly boost the share of renewables in the energy mix, reducing the reliance on coal and crude oil over the coming years.
[UPSC 2020] Consider the following statements:

1. Coal ash contains arsenic, lead and mercury.

2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment.

3. High ash content is observed in Indian coal.

Which of the statements given above is/are correct?

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and

 

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