Domestic coal production helps shield India from energy price swings, officials say

Domestic coal output is helping India avoid sharp shocks from global fuel prices, even as energy markets stay under strain, Coal Secretary Vikram Dev Dutt said on Friday. Speaking at a stakeholder meeting on "Mining for Future\" in Panjim, Goa, Dutt said recent months had put the sector under heavy pressure.

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Dutt said disruptions after the West Asia conflict affected LNG and LPG supplies from late February. Coal stocks at mines and power plants then helped the government assure stable electricity supply. The coal ministry said Dutt thanked the industry for supporting steady power during the period.

Domestic coal production and global gas market pressure

Dutt warned that strains have not ended, with the International Energy Agency expecting gas markets to remain tight through 2027. Asian spot LNG averaged USD 17.5 per MBtu in the second quarter. That level was 45 per cent higher than a year earlier, Dutt said.

He linked domestic output to economic stability during global volatility. \"Each tonne we produce at home protects the economy from these swings,\" the secretary said. Dutt also noted that global coal demand is forecast to hit a record 8.94 billion tonnes in 2026.

Domestic coal production outlook for India’s demand

Dutt said domestic demand projections also point to sustained coal use. NITI Aayog estimates India’s coal demand rises from about 1.25 billion tonnes in 2025. It is projected to exceed 2.6 billion tonnes by 2050 under current policies.

The same assessment indicates demand stays high even with stronger climate goals. NITI Aayog projects coal use remains above 1.8 billion tonnes on a net-zero pathway. Steel, cement, and power remain the three largest coal-consuming sectors as capacity keeps expanding.

Domestic coal production levels and power generation mix

India produced 1,041 million tonnes of coal in 2025-26, Dutt said. Coal still delivers more than 70 per cent of India’s electricity generation. The figures were cited to show why supply security remains central to the energy system.

Domestic coal production and mine closure commitments

Dutt said the ministry’s work includes sustainability, community welfare, and technology upgrades. Dutt stressed scientific mine closure and land restoration. Dutt said mined-out areas should become co-created, vibrant habitats, with ecological repair alongside community well-being and long-term social stability.

With inputs from PTI