en.Wedoany.com Reported - India's coal demand is expected to rise from the current approximately 1.2 billion tonnes to 1.6 billion tonnes by 2030, driven by growth in power generation and industrial activity, Coal Secretary Vikram Dev Dutt said on Friday.

India is the world's second-largest coal consumer after China. To enhance market transparency and energy security, the country is planning to establish a coal exchange and expand domestic coal supply. Speaking at a commodities industry event in Mumbai, Vikram Dev Dutt said a domestic coal exchange would create a transparent market for buyers and sellers, and could potentially pave the way for the development of a coal derivatives market in India in the future.

Dutt stated that coal demand would further rise to approximately 1.6 billion tonnes by 2030, and that India has transitioned from a coal shortage to a surplus—a shift that underscores the need for a more efficient, transparent, and market-oriented coal trading mechanism.

The Coal Ministry's earlier proposal to set up a coal exchange comes against the backdrop of a significant increase in domestic coal production last year, driven by government efforts to boost output and industry reforms allowing private companies to operate coal mines. India's coal-fired power generation and installed capacity have continued to rise, with coal still accounting for about 60% of the country's electricity mix, serving as a vital pillar of its power supply.

Despite rapid growth in renewable energy capacity, India still relies primarily on coal to meet most of its electricity demand, and authorities also hope to avoid blackouts during severe heatwaves. Rajnath Ram, energy advisor at NITI Aayog, the government's policy think tank, said late last year that coal would remain a key part of India's power system for the next two decades. Rajnath Ram noted that one cannot take a subjective stance on coal—the question lies in how to utilize it sustainably.