India's reliance on coal is a complex issue, deeply intertwined with its economic growth, energy security, and environmental commitments. While the nation strives to meet its net-zero emissions target by 2070, coal remains a critical component of its energy mix. Despite a global push towards renewable energy, India's energy demand is expected to grow more than any other country in the next decade, making coal a continued necessity.

The Persistent Role of Coal

Coal is the backbone of India's energy grid, providing over 70% of the country's power. It's an affordable and abundant resource, with substantial reserves ensuring its place as a major energy source for the foreseeable future. The Indian government anticipates coal demand will likely peak between 2030 and 2035. To maintain stability and energy security, India requires a base load capacity of coal-based generation. Furthermore, coal is essential for industries like steel, cement, and manufacturing, providing 40% of their energy needs in 2023, and this is expected to grow by 50% by 2035.

However, this dependence comes at a steep environmental price. Air pollution from coal-fired power plants causes approximately 100,000 premature deaths in India annually. A recent study by Stanford researchers highlights that nitrogen dioxide pollution from these plants significantly reduces wheat and rice yields, critical for India's food security, by 10% or more in many regions. This results in economic losses exceeding $800 million per year. Coal mining also depletes groundwater, damages crops, and forces residents to pay for clean water.

Moving Towards Cleaner Coal

Recognizing the environmental impact, India is actively exploring and implementing clean coal technologies (CCTs) to mitigate emissions and improve efficiency. These technologies include:

• Supercritical and Ultra-Supercritical Technologies: These technologies enhance the operational efficiency of power plants, leading to reduced coal consumption, quicker start-up times, increased operational flexibility, and reduced CO2 emissions. As of March 2023, India had commissioned 91 supercritical units (63,170 MW) and two ultra-supercritical units (1,320 MW).
• Advanced Ultra-Supercritical (AUSC) Technology: This technology, currently under development, aims to achieve even higher efficiency (45-46%) compared to subcritical (38%) and supercritical units (41-42%).
• Coal Gasification: This process converts coal into gaseous fuels, which can then be used for power generation or the production of chemicals and fertilizers. The government is providing incentives for surface coal gasification, including a 50% rebate in revenue share for commercial coal block auctions.
• Carbon Capture, Utilization, and Storage (CCUS): These technologies capture CO2 emissions from power plants and industrial facilities, preventing them from entering the atmosphere. The captured CO2 can then be used for various purposes, such as enhanced oil recovery or the production of chemicals, or stored permanently underground.
• Flue-gas desulphurisation (FGD) systems: These systems remove sulphur from the plants' exhaust gases.

Challenges and Policy Shifts

Despite these efforts, challenges remain. A recent government order eased sulphur emission rules for coal-fired power plants, exempting 79% of plants outside populated areas from installing flue-gas desulphurisation systems. This decision has raised concerns about competitiveness and cost recovery for plants that have already invested in the technology. Furthermore, there have been instances where coal companies have lobbied against environmental regulations, particularly those related to fly ash disposal.

The Path Forward

India's energy future will likely involve a mix of coal and renewable energy sources. The Ministry of New and Renewable Energy aims to achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. As of October 2022, 172.72 GW of capacity from non-fossil fuel sources had been installed. While the share of coal in India's power mix dropped to 70.7% in May 2025, with renewable energy reaching a record high, coal still plays a dominant role.

To minimize the environmental impact of coal, India needs to focus on:

• Investing in and deploying advanced clean coal technologies: This will improve the efficiency of coal-fired power plants and reduce emissions.
• Strengthening environmental regulations and ensuring compliance: This will help to minimize the pollution caused by coal mining and power generation.
• Promoting the use of fly ash: Utilizing "legacy" ash for various purposes can help to reduce water and soil pollution.
• Transitioning to renewable energy sources: While coal will remain important for some time, increasing the share of renewable energy in the energy mix is crucial for long-term sustainability.

By embracing these strategies, India can strive to balance its energy needs with its environmental responsibilities, making coal cleaner while it remains a necessary part of its energy landscape.