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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

manufacturing etc. However, the country faces a significant challenge in meeting its domestic coal
demand, especially for coking coal and high-grade thermal coal, which are in short supply within the
country's reserves. As a result, coal imports have been vital to meet the needs of key sectors, including
steel production.

The Ministry of Coal has been implementing strategic measures to strengthen domestic production and
ensure a secure coal supply, aligning with India's goals of reducing coal imports and enhancing energy
security. By prioritizing domestic coal output, the government aims to march ahead towards Viksit
Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic
growth.

One Billion Tonne: Strengthening India’s Energy Future!

India has achieved a momentous milestone in coal production, surpassing one billion tonnes (BT) on
March 20, 2025, in the fiscal year 2024-25. This remarkable achievement comes 11 days ahead of last
fiscal year's coal production of 997.83 million tonnes (MT), underscoring India’s significant progress in
ensuring its energy demands and driving industrial, agricultural, and overall economic growth.

The coal sector’s success is attributed to the tireless efforts of Coal Public Sector Undertakings (PSUs),
private players, and the dedicated workforce of around 5 lakh mine workers across more than 350 coal
mines. These coal miners, who have defied numerous challenges with unmatched dedication, have
played a pivotal role in achieving this historic milestone.

India relies on coal for approximately 55% of its energy mix, and around 74% of the country’s electricity
is generated by coal-based power plants. This underscores the critical importance of coal in powering
India’s economy and sustaining energy security.

The record-breaking coal production reflects the Government’s strategic reforms and policies, such as
amendments to the Mines and Minerals (Development and Regulation) Act and the opening of the coal
sector to private players through the commercial auctioning of coal blocks. These initiatives have led to
a marked increase in the availability of domestic coal, progressively substituting imports and significantly
contributing to foreign exchange savings. From April to December 2024, India’s coal imports declined by
8.4%, resulting in forex savings of around $5.43 billion (?42,315.7 crore) as compared to the same
period of last year.

This milestone aligns with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’ and highlights
the Ministry of Coal’s ongoing efforts to foster self-reliance in the energy sector while ensuring
sustainable development.

This achievement is not just about coal production; it is a crucial step towards ensuring long-term
energy security and propelling India’s overall development. By embracing advanced mining techniques,
optimizing logistics, and promoting sustainable practices, the coal sector is playing a central role in
strengthening India’s energy infrastructure and bolstering economic resilience.

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