India Ranks 2nd Globally with 329 Mtpa Coal Mining Projects

• India ranks 2nd globally with 329 MTpa of proposed coal mining capacity
• State-owned companies dominate, with major roles from Coal India and SECL
• Overcapacity concerns due to weak demand and local opposition

A new report from Global Energy Monitor (GEM) finds that India has the second-highest proposed coal mining capacity under development in the world, with a total of 329 million tonnes per annum (MTpa).

The breakdown of the proposed coal mining capacity includes 163 MTpa in early planning; 90 MTpa is permitted, and 75 MTpa is currently under construction. India's proposed capacity is concentrated in a limited number of states.

The GEM Global Coal Mine Tracker indicates Jharkhand (106 MTpa), Odisha (92 MTpa), Chhattisgarh (50 MTpa), and Madhya Pradesh (44 MTpa) together account for almost 90% of the coal development pipeline in India.

Across 54 countries, a total of 2.5 billion tonnes of coal mining capacity is under development globally, in which India has the second highest proposed capacity. China has the largest amount of coal capacity under development (737 MTpa), followed by India (329 MTpa), Russia (274 MTpa), and Australia (232 MTpa).

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Moreover, about 74% of India's coal mining capacity is under development by state-owned enterprises. Coal India Limited and its subsidiaries represent at least 79 MTpa, and South Eastern Coalfields Ltd (SECL) is developing more than 47 MTpa, and for private companies, the Adani Group is developing close to 32 MTpa.

As per the existing status quo, India has a coal mining capacity of approximately 1.1 billion tonnes per annum and produces approximately 900 million tonnes each year, and the government is targeting 1.5 billion tonnes by 2030.

The report noted that over 250 MTpa of proposed capacity was completely unsupported by evidence of demand in the power sector. Further, with a power plant load factor of only 69% in 2023-24 and coal inventories of around 46 million tonnes as of April 2024, such expansion must cause concern.

The contested projects with resistance from local communities of over 80% are in Jharkhand and Chhattisgarh. GEM stated that India's coal expansion could lead to overcapacity and thousands of stranded assets, while also urging for greater transparency and accountability, especially in forested and densely populated areas.