This Is How Coal Industry Powers India’s Growth

Coal remains the dominant source of energy for India, with coal-based power accounting for over 74% of the total power generated in FY23. According to the latest data, coal dispatches to the power sector increased 9.1% to 737.9 MT in FY23 from 676.3 MT in FY22, driven by higher demand for electricity. In this article, we will explore more about the rise in coal demand, coal imports in India, PLF and a lot more.

Highlights Of Coal Sector

• Increasing Energy Needs- Overall energy needs in India grew 10% to 1,182 billion units in FY23. The power sector consumed 663.5 MT of domestic coal and 50.8 MT of imported coal, up 10% and 110.5% respectively. The rise in coal demand and consumption lead to increase in coal imports in India. It highlights India’s increasing energy requirements to support economic growth and development.
• Improving Efficiencies- The plant load factor (PLF) of coal-based power plants rose to 64.15% in FY23 from 57.23% in FY22, showing more efficient utilization of generation capacity. The Ministry of Railways added one lakh wagons to transport more coal to power plants, increasing rake movement by 5.6% last fiscal year. The Ministry of Coal will also commission 19 new first-mile connectivity projects by FY26-27 to move 330 MT of coal, strengthening the linkage between coal mines and dispatch points.

OFB’s Insight

While coal will dominate India’s energy mix in the coming decades, the country needs to balance its energy security with environmental sustainability. Stricter emission norms, renewable energy targets and new technologies will shape the future of India’s coal industry. Transitioning to more efficient coal technologies and renewable energy will be crucial for India to meet its climate change commitments. Overall, coal is set to remain a major driver of India’s economic growth, even as the country pursues a greener energy path.

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