Coal Remains India's Energy Backbone, House Committee Report Reaffirms 1.5 Bn Tonne Target For 2030

Last Updated:December 11, 2025, 09:24 IST

Odisha is expected to produce 494 MT by 2030, followed by Chhattisgarh, Jharkhand and West Bengal, Madhya Pradesh and Uttar Pradesh, Telangana, Maharashtra by 2030

India’s Coal Public Sector Undertakings (PSUs) surpassed historic coal production with extraction of nearly one billion tonnes of coal from mines in 2024-25---a growth of about 4.98 per cent in FY 2024-25.

A Parliamentary Standing Committee report has reaffirmed coal as the backbone of India’s energy security and self-reliance, backing the government’s ambitious target of achieving 1.5 billion tonnes of annual coal production by 2029-30. This follows India’s highest-ever coal production in 2024-25, surpassing nearly one billion tonnes of coal.

Asserting coal’s role as the primary source of commercial energy in the country, the Parliamentary Committee report tabled during the ongoing winter session highlighted that coal contributes nearly 55 per cent to the national energy needs and fuels about 74 per cent of total power generation through thermal coal. It also noted that steps are being taken to reduce carbon emissions from coal mines by creating carbon sinks through plantations, adoption of clean coal technologies like coal gasification and diversifying in renewable energy projects including solar, wind and geo-thermal energy.

ROADMAP FOR 1.5 BILLION TONNES COAL BY 2030

The committee on Coal, Mines and Steel stated that the Ministry of Coal has duly identified projects to facilitate the achievement of 1.5 BT coal production by 2030. Odisha is expected to lead with production of 494 MT by 2030, followed by Chhattisgarh (434 MT), Jharkhand and West Bengal (298 MT), Madhya Pradesh and Uttar Pradesh (137 MT), Telangana (100 MT), Maharashtra (70 MT).

“Additional coal projects are being identified under greenfield and brownfield projects as per the production programme, and advance actions are being taken for obtaining Environmental and Forest Clearance (EC and FC) of such projects," it stated.

ENVIRONMENTAL, FOREST CLEARANCES ON FAST TRACK

The government has also expedited Environment Clearance, Forest Clearance (diversion of forest land for non-forest use) and Wildlife Clearance for Coal mining projects through PARIVESH 2.0 Portal. At present, 21 permissions are required at the central government level and 17 permissions at the state government level. Under the EIA Notification 2006, environmental clearances are to be processed within 105 days, and the government said it is now clearing the applications in just 70-80 days, as against the statutory timeline.

The Committee also noted that Central PSUs secure clearance much faster than private coal block developers. While CPUs typically obtain Environment Clearances in 15-18 months, and Forest Clearance (FC) in 24-30 months, private commercial coal block holders take about 26 months for EC, and 34 months for FC. It also noted that since the launch of the PARIVESH 2.0 portal in 2022, no EC-FC proposals of coal companies have been rejected and process efficiency has increased.

The committee also took note of the ministry’s decisions to expedite clearances by allowing capacity expansion of up to 50 per cent without the need for a fresh public hearing, decentralisation and delegation of powers from Central to State Environment Impact Assessment Authority (SEIAA) for dealing with coal mining projects less than 500 hectares.

HISTORIC COAL PRODUCTION IN 2024-25

India’s Coal Public Sector Undertakings (PSUs) surpassed historic coal production with extraction of nearly one billion tonnes of coal from mines in 2024-25—a growth of about 4.98 per cent in FY 2024-25. Coal dispatch also crossed the 1 billion tonne milestone, with total dispatch (transportation and distribution to consumers) reaching 1024.99 MT (Provisional) in FY 2024-25—up 5.34 per cent from 973.01 MT in FY 2023-24.

As of April 2024, India’s geological coal resources, assessed up to a depth of 1,200 meters, stand at 3.8 lakh million tonnes concentrated mainly in Odisha, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana, and Maharashtra. While that of Lignite (premature variety of coal) is 47 thousand million tonnes with major deposits in Tamil Nadu, Rajasthan, Gujarat, Puducherry, Jammu and Kashmir, Kerala, Odisha and West Bengal. About 20-25 per cent of India’s total coal demand is met from imports, but coal imports fell by 7.90 per cent in FY25 compared to previous year.

STANDARDISED DIGITAL TEMPLATES FOR GRAM SABHA NOD

In its recommendations, the committee chaired by BJP MP Anurag Singh Thakur noted the delay in getting clearance by Gram Sabhas under the Forest Rights Act, 2006, and recommended that the Ministry of Coal, in consultation with the Ministry of Environment, Forest and Climate Change and the Ministry of Tribal Affairs, develop a standardised protocol for Gram Sabha resolutions and verification procedures under the Forest Rights Act, 2006 across all coal-bearing states.

“The Ministry of Coal and MoEF&CC may also jointly develop standardized digital templates for Gram Sabha certification and make them available on the PARIVESH portal to enable uniform online submissions and verifications," it noted.

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