India Nearly Doubles Proposed Coal Mining Capacity
India has nearly doubled its proposed coal mining capacity in 2025, emerging as the biggest force behind the expansion of the global coal project pipeline even as worldwide coal demand growth slows and renewable energy accelerates. According to a Global Energy Monitor report, India’s planned coal mining capacity has jumped from 329 million metric tonnes per annum (mtpa) in 2024 to 638 mtpa in 2025, accounting for almost the entire 11% increase in the global project pipeline, which now stands at 2,521 mtpa.
Why India Is Expanding Coal Production
The government has set an ambitious target of producing nearly 1.15 billion tonnes of raw coal in FY2025–26, with an even bigger goal of reaching 1.5 billion tonnes annually by 2030. Achieving these targets requires a significant expansion of mining capacity alongside reforms designed to attract private investment into the sector.
A key pillar of this strategy has been the auction of commercial coal blocks, which has steadily increased the contribution of captive and commercial mines to India’s overall coal production.
Jharkhand and Odisha Become the Growth Engine
The expansion is heavily concentrated in Jharkhand and Odisha, two states that possess some of India’s richest coal reserves and well-developed mining infrastructure.
Both states witnessed a sharp increase in proposed mining projects during 2025, with thermal coal accounting for about 94% of India’s planned capacity. The government also plans to operationalise more than 20 new coal mines with a combined capacity exceeding 80 mtpa, leveraging existing rail networks, processing facilities and logistics corridors to accelerate production.
The concentration of projects in eastern India is expected to strengthen regional industrial activity while creating substantial employment opportunities across mining and allied sectors.
Coal Reforms Fuel Investment and Jobs
India’s production momentum is already visible. Captive and commercial coal mines recorded a 9.6% year-on-year increase in output, reaching 14.78 million tonnes in July 2026, while dispatches climbed to 17.49 million tonnes.
So far, 141 commercial coal mines have been auctioned across 14 rounds, together representing a peak-rated production capacity of 366.35 mtpa.
The government expects these reforms to attract investments worth nearly ₹48,756 crore, generate annual revenues of about ₹47,000 crore and create around 4.75 lakh jobs when production reaches full capacity.
A Different Path from the Global Trend
India’s aggressive expansion stands in contrast to global developments. New coal mining capacity worldwide fell by nearly 40% in 2025, largely because project pipelines slowed in China and Australia.
Although China still has the world’s largest proposed coal pipeline at 1,321 mtpa, its expansion has plateaued, allowing India to emerge as the principal driver of new projects. At the same time, nearly 70% of global coal projects remain in pre-construction, raising concerns that many could eventually become stranded assets as wind and solar increasingly dominate electricity generation.
Balancing Energy Security with Climate Commitments
India’s coal strategy reflects a difficult balancing act. While renewable energy continues expanding rapidly, coal remains indispensable for baseload electricity, manufacturing and industrial growth. The International Energy Agency expects global coal demand to plateau by 2030, but India’s immediate priority remains ensuring reliable and affordable power for a growing economy.
The challenge ahead will be ensuring that today’s coal investments strengthen energy security without becoming tomorrow’s stranded assets, as India simultaneously pursues its long-term clean energy ambitions.
(With agency inputs)
