Lok Sabha Question No. 5510 (UNSTARRED), answered on 2026-03-25
Subject: Impact of Decline in Global Coal Demand
Ministry: COAL
Asked by: Shri Kanwar Singh Tanwar

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION No. 5510

ANSWERED ON 25.03.2026

## IMPACT OF DECLINE IN GLOBAL COAL DEMAND

## † 5510. SHRI KANWAR SINGH TANWAR:

Will the Minister of COAL be pleased to state:

- (a) whether the Government has accessed the impact of stabilization and potential decline in global  coal  demand  on  India's  long-term  domestic  coal  production  strategy  including expansion plans, commercial mining policy and investment in new coal blocks;
- (b) if so, the details of the scenario planning undertaken by the Government to assess the impact on coal producing States, Public Sector Undertakings (PSUs), private mining companies and related employment ecosystem; and
- (c) the policy direction proposed by the Government to ensure responsible management of coal production balancing national energy requirements, financial prudence, worker safety and environmental consideration during the transitional period?

## ANSWER

## MINISTER OF STATE FOR COAL AND MINES (SHRI SATISH CHANDRA DUBEY)

(a)  &  (b): Coal  is  an  important  source  of  energy  in  India  and  presently  it  constitutes approximately 55% of the country's total primary commercial energy demand. India's long-term domestic coal production strategy continues to be guided primarily by the need to ensure energy security for growing power and industrial requirements. The Government continuously monitors global energy market developments, including trends relating to stabilization or moderation in coal demand.

In view of India's developmental needs, coal demand is projected to remain significant in the foreseeable  future.  Accordingly,  decisions  relating  to  expansion  of  production  capacity, commercial coal mining and allocation of coal blocks are taken in a calibrated, transparent and need-based  manner,  keeping  in  view  prevailing  demand-supply  dynamics,  techno-economic considerations and extant policy framework.

The Government undertakes periodic and broad-based assessments based on a range of scenarios such  as  possible  implications  for  coal-producing  States,  Public  Sector  Undertakings  (PSUs), private sector participants and associated employment. Measures for regional development, skill enhancement  and  economic  diversification  are  addressed  through  ongoing  schemes  and institutional mechanisms, as per extant policies.

- (c): Government's  thrust  is  towards  strengthening  India's  energy  security  along  with ensuring a self-reliant energy landscape. In FY 2024-25, coal imports stood at 244 MT, valued at Rs. 24,95,337 Million Rupees, compared to 264 MT valued at Rs. 31,02,154 Million Rupees in FY 2023-24. Thus, there was a reduction of around 8% in quantity terms and 20% in value terms in FY 2024-25 compared to FY 2023-24.

SHAKTI Policy (2025) has streamlined the coal linkage framework and enhanced flexibility and accessibility  of  domestic  coal  for  the  power  sector.  Provisions  such  as  permitting  existing consumers  to  procure  coal  up  to  100%  PLF  (plant  load  factor)  requirement  and  enabling participation of imported coal-based power plants are expected to increase demand for domestic coal.

CoalSETU window under the NRS (non-regulated sector) linkage policy has enabled non-coking coal linkage without end-use restrictions, for exports and for washeries.

The following initiatives have been taken to ensure responsible management of coal production, balancing worker safety:

- i. Ensuring adequate resources & manpower and a comprehensive OHS policy.
- ii. Strengthening function of Internal Safety Organization, implementing Safety Management Plans & Principal Hazard Management Plans, enforcement of the Code of Practice and Standard Operating Procedure, and compliance of transport rules.
- iii. Conducting annual mine safety audits and Root Cause Analysis (RCA)-based accident investigations.
- iv. Adoption  of  high  degree  of  mechanization  through  Continuous  Miners  (CM)  in underground  mines,  Surface  Miners  in  opencast  (OC)  mines,  and  Highwall  mining technology (hybrid system).
- v. Enhanced transport safety through GPS-based tracking system and geo-fencing. Realtime surveillance through Integrated Command and Control Centres.
- vi. Digital Strata Control and Monitoring System deployed in OC mines.

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