India second in global coal mining pipeline with 329 MTpa capacity under development: GEM

New Delhi: India ranks second globally in terms of proposed coal mining capacity under development with 329 million tonnes per annum (MTpa), according to a new report by Global Energy Monitor (GEM).Of the 329 MTpa capacity, 163 MTpa is in the early planning stage, 90 MTpa has received permits, and 75 MTpa is currently under construction.According to GEM’s Global Coal Mine Tracker, the pipeline is geographically concentrated, with Jharkhand accounting for 106 MTpa, Odisha 92 MTpa, Chhattisgarh 50 MTpa, and Madhya Pradesh 44 MTpa—together making up nearly 90 per cent of the total capacity under development in India.Globally, coal mining capacity under development stands at 2.5 billion tonnes per annum across 54 countries. China leads with 737 MTpa, followed by India (329 MTpa), Russia (274 MTpa), and Australia (232 MTpa).

The report highlights that approximately 74 per cent of India’s coal mine capacity under development is being pursued by government-owned entities. Coal India Limited and its subsidiaries are responsible for at least 79 MTpa, with South Eastern Coalfields Ltd (SECL) developing over 47 MTpa. Among private developers, the Adani Group is leading with about 32 MTpa.

India’s current coal mining capacity is about 1.1 billion tonnes per annum, with production at approximately 900 million tonnes per annum. The government has set a target of achieving 1.5 billion tonnes of coal production by 2030.However, the report notes that over 250 MTpa of the proposed capacity does not have a specific justification based on the demand from the power sector. India’s thermal power plants operated at an average plant load factor of 69 per cent in 2023-24. As of April 2024, coal stockpiles stood at 46 million tonnes.According to GEM, more than 80 per cent of coal capacity facing community opposition is located in Jharkhand and Chhattisgarh. Coal India mines account for a significant portion of these contested projects.

The report states that India’s coal mine expansion may result in overcapacity and create a risk of stranded assets. It recommends improved transparency and regulatory scrutiny for proposed projects, especially those located in forested and densely populated areas.