India is going to increase coal production to counter power shortages in the country. The government has therefore commissioned the state-owned company Coal India to produce more coal.
India relies on coal-fired power stations for about 70 percent of its electricity production.
The step is to prevent a power outage due to shortages. Coal India is investing billions to increase production capacity and improve coal transportation. Demand for coal in the country of approximately 1.3 billion people is expected to continue to grow in the coming years, despite government efforts to increase energy production from renewable sources.
India also wants to be less dependent on the import of coal from abroad. This accounts for about a quarter of the country’s total needs. As a result, no more coal should be imported by 2024. In the previous financial year, up to the end of March, this involved 215 million tons of coal.