ENERGY CELL

MONTHLY REPORT
MINISTRY OF COAL
September’2023

Shastri Bhavan, New Delhi-110001

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 Message
In India, coal is the main source of energy, contributing to around 73% of the energy mix, and around 75%
of electricity is generated by coal. Even though there is immense pressure from the global community to
move away from coal, in the near future, it will not be easy for developing countries like India, which is
highly dependent on coal, to move away from coal. As per our analysis, coal demand is likely to rise to 1.5
BT by 2029- 30 and 2 BT by 2047. A surging economy drives the energy demand to meet the country's
aspirations. The coal sector has witnessed an unprecedented upswing, with production, dispatch and
declining import trends. The Ministry of Coal remains committed to consistently maintaining energy
security through coal production and dispatch, ensuring an uninterrupted supply for a reliable and resilient
energy sector that contributes to the nation's continued growth and prosperity. The Ministry of Coal has
achieved a substantial surge in overall coal production during September 2023, attaining 67.33 million
tonnes (MT) production, surpassing the figures of 58.04 MT of the corresponding month in the previous
year, representing an increase of 16.01%. The cumulative coal production (up to September 2023) has seen
a quantum jump to 428.38 MT in FY' 23-24 compared to 382.16 MT during the same period in FY' 22-23,
with a growth of 12.09 %. An emerging economy drives the energy demand to meet the country's
aspirations. Overall coal imports from April to September declined by 8.22% to 124.53 MT in FY 2023-
24, over 135.68 MT in FY 2022-23, which depicts the country's efforts towards self-sustainability in fossil
fuels.

The publication contains the latest data available in respect of a brief analysis of the data on coal production,
consumption, import, sector-wise coal consumption, generation and consumption of energy resources,
Global electricity demand and generation, India's electricity demand and generation and share of coal in
Global and India's electricity generation. This publication attempts to cater to the needs of planners,
policymakers, and researchers by making all the coal/energy data available in a single place.

M. NAGARAJU
Additional Secretary,
Ministry of Coal.
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LIST OF OFFICERS ASSOCIATED WITH THE REPORT

Shri Ajitesh Kumar

Director (P&S-I/P&S-II/NA)

Shri Marapally Venkateshwarlu

Director (Tech), NA

Shri Alok Kumar Verma

Under Secretary

Dr. Lingampally Sai Vinay

Mining Expert

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 TABLE OF CONTENTS

1 Role of Coal in the Indian Energy Scenario ................................................................................. 7

1.1 Introduction ........................................................................................................................... 7
1.2 Coal Production ..................................................................................................................... 8
1.3 Coal Imports .......................................................................................................................... 8
1.4 Coal Consumption ................................................................................................................. 9
1.5 Sector-wise coal consumption............................................................................................... 9
1.6 Generation of Energy Resources ......................................................................................... 10
1.7 Consumption of Energy Resources ..................................................................................... 11
2 Role of Coal in the Electricity Sector ......................................................................................... 11
2.1 Global Electricity Demand .................................................................................................. 11
2.2 Global Electricity Generation.............................................................................................. 12
2.3 Share of Coal in Global Electricity Generation .................................................................. 12
2.4 India Electricity Demand .................................................................................................... 13
2.5 Indian Electricity Generation .............................................................................................. 13
2.6 Share of Coal in India's Electricity Generation ................................................................... 14
3 Conclusion .................................................................................................................................. 14
References .......................................................................................................................................... 15

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1 Role of Coal in the Indian Energy Scenario

1.1 Introduction

Coal is India's most affordable energy source, with substantial reserves of 361.41 billion tonnes as of
01.04.2022. Coal will remain a major source of energy in the foreseeable future. Coal demand in the
country is yet to peak. As per Economic Survey 2022-23, coal demand is estimated to be around 1.3-1.5
billion tonnes by 2030. It is also estimated that demand will likely continue to peak between 2030 and
2035. Electricity generated by coal-based power plants increased by 10% between 2021-22 and 2022-23.
It is also observed that there is no decline in coal-based electricity generation in the FY 2022-23 over the
FY 2021-22. There is no report of any coal-based power plant shutdown due to coal shortages during 2021-
22 and 2022-23.

As per the India Climate Energy Dashboard (ICED) launched in July 2023 by NITI Aayog, India's primary
energy supply has grown at 4.0% CAGR during 2012-22 (excluding exceptional COVID years of 2020 &
2021). As per India Energy Security Scenarios (IESS) 2047 - an Energy Modelling tool developed by NITI
Aayog, the future energy supply is projected to grow from 3.3% to 3.5% under net-zero and BAU scenarios,
respectively.

However, there is immense pressure from the global community to move away from coal. However, the
transition from coal is not happening in the foreseeable future. It is difficult to move away from coal in
developing countries like India, which is highly dependent on coal. Thus, as of now, there is no scenario
of transition away from coal affecting any stakeholders involved in coal mining. However, the Ministry of
Coal has constituted a Sub-Committee to look into holistic closure of abandoned/legacy mine sites and
mines closing due to exhaustion of reserves, viability issues etc., and involving social aspects of mine
closure on principles of just transition in addition to physical and environmental closure.

There is likely an increase in coal-based generation on account of the uncertainty in the realization of the
expected/scheduled capacity addition from hydro, nuclear, renewable sources and climactic factors like
drought conditions, etc. In India, coal is the main energy source; it contributes around 73% to the energy
mix, and around 75% of the country's electricity is generated by coal.

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1.2 Coal Production

India's Coal Production

The Ministry of Coal has achieved a substantial surge in overall coal production during September 2023,
attaining 67.33 million tonnes (MT) production, surpassing the figures of 58.04 MT of the corresponding
month in the previous year, representing an increase of 16.01%. The cumulative coal production (up to
September 2023) has seen a quantum jump to 428.38 MT in FY' 23-24 compared to 382.16 MT during the
same period in FY' 22-23, with a growth of 12.09 %. This trend is expected to increase further over the
coming years to meet the country's increasing coal demand.

Coal production
80.00
67.33
58.04
Million Tonnes (MT)

60.00

40.00

20.00

0.00
September 2022 September 2023
September FY 23-FY 24

Figure 1 Monthly coal production in India during September FY23 -FY24

1.3 Coal Imports

Despite the country's effort towards declining coal imports, it has been observed that there is a slight
increase in total coal imports by 4.35% to 20.61 MT in September FY 2023-24 over 19.75 MT in the
corresponding month of the previous FY 2022-23. Of the total imports, non-coking coal imports were
13.89 MT in September FY24 against 12.08 MT in September FY23, and coking coal imports were at 4.59
MT in September FY24 against 4.88 MT in September FY23. Overall coal imports from April to September
declined by 8.95% to 124.53 MT in FY 2023-24, over 135.68 MT in FY 2022-23, which shows the
country's efforts towards self-sustainability in fossil fuels. This trend is expected to decline in the future
unless there is a sudden spurt in demand and a significant softening in seaborne prices.

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Coal Imports
25

Million Tonnes (MT)

20

15

10

0
Total Imports Coking Non Coking Others
September 2022 19.75 4.88 12.08 2.79
September 2023 20.61 4.59 13.89 2.13
September FY 23-FY 24

Figure 2 Coal Imports during September FY23-FY24

1.4 Coal Consumption

The coal consumption in September FY 2023-24 is 90.97 MT over 80.85 MT in the corresponding month
of FY 2022-23, with a positive growth of 12.52%. Overall coal consumption from April to September has
been raised by 5.88% to 586.8 MT in FY 2023-24 and over 552.32 MT in FY 2022-23.

Coal consumption
100.00 90.97
80.85
80.00
Million Tonnes (MT)

60.00

40.00

20.00

0.00
September 2022 September 2023
September FY 23-FY 24

Figure 3 Monthly coal consumption in India during September FY 23-FY24

1.5 Sector-wise coal consumption

Coal is the most important and abundant fossil fuel in India. It is mainly utilized for power, CPP, iron and
steel, cement and other sectors. In September FY24, coal utilized by various sectors are as follows power

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(63.13 MT), CPP (4.36 MT), iron & steel (7.83 MT), cement (2.5 MT) and others (13.16 MT) over
corresponding month of the previous FY23 as power (53.31 MT), CPP (3.17 MT), iron & steel (7.39 MT),
cement (1.91 MT) and others (15.09 MT).

Sector-wise coal consumption

70.00
Million Tonnes (MT)

60.00
50.00
40.00
30.00
20.00
10.00
0.00
Iron &
Power CPP Cement Others
Steel
September 2022 53.31 3.17 7.39 1.91 15.09
September 2023 63.13 4.36 7.83 2.5 13.16
September FY 23-FY 24

Figure 4 Sector-wise coal consumption during September FY23-FY24

1.6 Generation of Energy Resources

India still depends heavily on coal as the major source of energy. During the FY 2021-22, energy generated
from coal accounted for about 72.92% of the total generation of energy, followed by electricity (from
hydro, nuclear and other renewable energy sources) (8.24%), natural gas (8.16%), crude oil (7.87%) and
lignite (2.81%).

Figure 5 Generation of Energy Resources FY 2021-22

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1.7 Consumption of Energy Resources

During FY 2021-22, the consumption of energy from coal and crude petroleum was the highest, accounting
for about 47% and 31% of the total consumption, followed by electricity(from hydro, nuclear and other
renewable energy sources) (14%), natural gas (7%) and lignite (1%), which indicates the dominance of
coal in overall energy consumption in India.

Figure 6 Consumption of Energy Resources FY 2021-22

2 Role of Coal in the Electricity Sector

Electricity is central to many parts of life in modern societies. It will become even more so as its role in
transport and heating expands through the widening use of electric vehicles and heat pumps. Coal has been
the main contributor to power generation for many decades. Power generation is currently the largest source
of CO2 emissions globally. Still, it is also the sector leading the transition to net zero emissions through
the rapid deployment of renewables such as solar and wind. The main sources of electricity generation are
coal, natural gas, hydro, nuclear, biomass and other renewable sources.

2.1 Global Electricity Demand

In September FY24, Global electricity demand observed a peripheral increase of 4.99% to 2365.88 TWh
over 2253.44 TWh in the corresponding month of the previous FY23.

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World Electricity Demand

2500 2365.88
2253.44

2000

TWh Units 1500

1000

500

0
September 2022 September 2023

September FY 23-FY 24

Figure 7 Global Electricity Demand

2.2 Global Electricity Generation

In September FY24, Global electricity generation observed a peripheral increase of 4.99% to 2365.88 TWh
over 2253.44 TWh in the corresponding month of the previous FY23.

World Electricity Generation

2500 2365.88
2253.44

2000
TWh Units

1500

1000

500

0
September 2022 September 2023
September FY 23-FY 24

Figure 8 Global Electricity Generation

2.3 Share of Coal in Global Electricity Generation

In September FY24, the share of coal declined by 3.80%, contributing 34.67% in overall global electricity
generation against 36.04% in the corresponding month of the previous FY23.

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Share of Coal in Global Electricity Generation

80.0

60.0

Percentage (%)
40.0 36.04 34.67

20.0

0.0
September 2022 September 2023
September FY 23-FY 24

Figure 9 Share of Coal in Global Electricity Generation

2.4 India Electricity Demand

India's electricity demand has seen a significant increase of 9.09% to 148.83 TWh in September FY24
against 136.43 TWh in the corresponding month of the previous FY23.

India Electricity Demand

180
148.83
150 136.43

120
TWh Units

90

60

30

0
September 2022 September 2023
September FY 23-FY 24

Figure 10 India Electricity Demand

2.5 Indian Electricity Generation

India's electricity generation has seen a significant increase of 9.7% to 149.57 TWh in September FY24
against 135.67 TWh in the corresponding month of the previous FY23.

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India Electricity Generation

180
149.57
150 135.67

120
TWh Units
90

60

30

0
September 2022 September 2023
September FY 23-FY 24

Figure 11 India Electricity Generation

2.6 Share of Coal in India's Electricity Generation

In India, Coal is the major contributor to power generation. The share of coal in India's electricity
generation in September FY24 is 70.76 against 67.47 over the corresponding month of the previous FY23,
with an increase of 4.88%.

Share of Coal in India's Electricity Generation

80
70.76
67.47

60
Percentage (%)

40

20

0
September 2022 September 2023
September FY 23-FY 24

Figure 12 Share of Coal in India's Electricity Generation

3 Conclusion
In India, coal production and consumption in September FY 24 observed a positive growth of 16.01% and
12.52%, with a total volume of 67.33 MT and 90.97 MT, respectively. In contrast, total coal imports
declined by 4.35% over September FY 23, which signifies coal demand in the nation. Of the total imports,

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non-coking coal imports were 13.89 MT in September FY24 against 12.08 MT in September FY23, and
coking coal imports were at 4.59 MT in September FY24 against 4.88 MT in September FY23. Overall
coal imports from April to September declined by 8.95% to 124.53 MT in FY 2023-24, over 135.68 MT
in FY 2022-23, which shows the country's efforts towards self-sustainability in fossil fuels. This trend is
expected to decline in the future unless there is a sudden spurt in demand and a significant softening in
seaborne prices.

Global electricity demand and generation in September FY24 have shown similar trends, with a peripheral
increase of 4.99% to 2365.88 TWh over September FY23, where the share of coal declined 3.80%,
contributing 34.67% in overall global electricity generation. Meanwhile, India's electricity demand and
generation in September FY 24 has shown significant growth of 9.08% and 9.70%, respectively, over
September FY23. In India, Coal is the major contributor to power generation. There is no significant
difference in the share of coal in India's electricity generation, even though there is a global push towards
just transition. The share of coal in India's electricity generation in September FY24 is 70.76%, with a
positive growth of 4.88% over the corresponding month in the previous FY23. This trend signifies coal
will remain a major energy source in India in the foreseeable future. There is also immense pressure from
the global community to move away from coal. But in the foreseeable future, it will not be easy to move
away from coal for developing countries like India, which is highly dependent on coal. There is likely an
increase in coal-based generation on account of the uncertainty in the realization of the expected/scheduled
capacity addition from hydro, nuclear, renewable sources and climactic factors like drought conditions,
etc.

References
1. Provisional Coal Statistics
2. Geological Survey of India
3. Ministry of Coal
4. Ministry of Power
5. Ministry of New and Renewable Energy
6. Coal Controller's Organization
7. Coal Vision 2030
8. Central Electricity Authority
9. World Bank Commodity Markets
10. Enerdata

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