Coal in the Energy Supply of India

  Indian coal reserves are the third largest in the world, after the United States and China. India is the third largest coal producer in the world and the eighth largest importer. With annual production of 310 million tonnes and imports of almost 25 million tonnes, coal provides one-third of energy supply in India. The Indian government forecasts huge increases in electricity capacity based on coal. Massive increases in coal supply would be required if these plans are realised, although it is not clear if they are feasible. The principal objective of Indian coal policy should be to improve the financial performance of the industry by creating a freely competitive coal industry. A financially viable electricity industry will be necessary to support reforms in the coal industry. This report describes the Indian coal sector, and comments on government policies and the performance of India’s largely state-owned coal companies. There is a substantial need for reforms in India’s coal sector to improve efficiency and competitiveness.<!-- -->