PRELIMS SNIPPETS – November 23rd 2022

Coal Demand

Why in News?

  • Recently, Despite the country’s efforts to switch to renewable energy, coal will remain India’s dominant energy source.


  • According to the projections by Climate Action Tracker, fossil fuel makes up for over half the installed energy capacity in the country and is expected to touch around 266 gigawatts by 2029-2030.
  • Domestic coal requirement is expected to rise to 1,018.2 million tonnes by 2031-32 from 678 MT in 2021-2022.
  • This means coal consumption will increase 40% in India
  • Iron and steel production uses coal and there are not many technologies to replace the fuel immediately.
  • Continued expansion of India’s economy is expected during 2022-2024, with annual average GDP growth of 7.4%, fuelled partially by coal.
  • India’s push to domestic coal mining through both Coal India and auction of coal blocks to private companies, coal usage in India will increase as it plateaus in other parts of the world, including China.
  • The central government has opened up coal mining for the private sector, claiming it as one of its most ambitious coal sector reforms.
  • The government anticipates that it will bring efficiency and competition in coal production, attract investments and best-in-class technology, and help create more jobs in the coal sector.
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