India's Coal Demand Will Reach 1.6 Billion Tons By 2030

 India's Coal Minister VikramDevDutt said that due to increases in power generation and industrial activity, India's coal demand will jump from about 1.2 billion tons now to 1.6 billion tons by 2030.

 India, the world's second-largest coal consumer after China, plans to establish a coal trading exchange and increase domestic coal supply to improve market transparency and energy security, respectively.

 The minister said at a commodities industry event in Mumbai that a local coal exchange would create a transparent market for buyers and sellers and could lead to the establishment of India's coal derivatives market.

 Last year, India's Ministry of Coal proposed setting up a coal trading exchange, as domestic coal production surged amid government efforts to push for higher output and industry reforms allowing private companies to operate mines.

 India's total coal-fired power generation and installed capacity continue to rise, and coal remains a key pillar of India's power mix, accounting for about 60% of total electricity output. Despite the booming addition of renewable energy capacity, India continues to rely on coal to meet most of its power needs, as authorities also hope to avoid blackouts during severe heatwaves.

 Over the next two decades, coal will remain a key part of India's power system, and they believe that "we cannot be subjective about coal. The issue is how we can use it sustainably."