| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 1.04 Billion tons |
| Market Volume (2030) | 1.50 Billion tons |
| CAGR | 7.57 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Coal Market Analysis
The India Coal Market size is estimated at 1.04 billion tons in 2025, and is expected to reach 1.50 billion tons by 2030, at a CAGR of 7.57% during the forecast period (2025-2030).
- Over the medium term, factors such as increasing power generation capacity plans and increasing electricity demand and rapidly growing industrial and infrastructural development activities, are expected to be one of the most significant drivers for the India coal market during the forecast period.
- On the other hand, supportive government policies to increase renewable energy generation is expected to restrain the growth of the Indian coal market during the forecast period.
- Nevertheless, availability of lignite resources in three states: Tamil Nadu, which accounts for 79% of lignite resources, Rajasthan, and Gujarat. Most of the resources are untapped, and the mining of lignite sources is expected to create several opportunities for the market players.
India Coal Market Trends
Increasing Thermal Power Generation is Expected to Drive the Market
- Coal is extensively used in India to fire thermal power stations and, in turn, meet the demand for various sectors, such as industry, transport, residential, commercial, and public services. The power stations segment is expected to dominate the market, supported by India's plan to add additional coal-fired plants during the forecast period.
- Coal-fired power plants generate energy from the combustion of coal. The country is the second-largest coal producer globally and uses most coal to produce electricity. According to the India Ministry of Coal statistics, as of July 2023, the country imported 87.97 million tonnes of coal, moreover, the total coal imports registered 237.67 million tonnes in 2022-23.
- In April 2023, India's total coal installed generation capacity was 205 GW, which accounted for 49.3 % of the full installed power generation capacity. The increased consumption of coal exhibits the growing usage of coal in the country. Coal is abundant and economical for the country and is widely used by power-generating companies.
- The Ministry of Power in India is plplansommission Patratu Super Thermal Project by the end of 2022. The project is located in Jharkhand and can produce 4000 megawatts (MW) of coal-fired power. For India, coal has been a significant source of power generation in the past and still holds a considerable share in the country's power generation industry. This is expected to positively impact the thermal power plant market in the country.
- Moreover, the country plans to commission the Uppur Thermal Power Project located in Ramanathapuram, Tamilnadu, with a capacity of 1600 MW by 2023. The project is owned by Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) and has an investment cost of USD 1.7 billion.
- Hence, owing to the above points, increasing thermal-based power generation projects are expected to drive the Indian Coal Market during the forecast period.
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Supportive Government Policies for Renewables is Expected to Restrain the Market
- The Indian government has introduced numerous supportive policies to increase the renewable energy installed capacity to 450 GW by 2030. Since the utilization of coal leads to air pollution linked with health disorders, the government is actively promoting renewables to reduce coal usage.
- According to International Renewable Energy Agency, the total renewable energy installed capacity raised to 162.96 GW in 2022, with an annual growth rate of 10.8% compared to the previous year.
- As part of the Paris Climate Agreement, India has committed to install 40% of its electricity generation capacity from non-fossil fuels by 2030. To achieve this goal, India has set an ambitious target of setting up 1,75,000 MW of renewable energy capacity, including 1,00,000 MW of solar power, by 2022. Further, a target of 4,50,000 MW installed RE capacity by 2030 has also been fixed, and this, in turn, culminates in the reduction in the usage of coal across the country
- Some other schemes implemented by the Ministry of New and Renewable Energy (MNRE) in the last three years are the Solar Park Scheme, the 300 MW defense Scheme, and the 500 MW of VGF (Viability Gap Funding) Scheme. In January 2020, India made an ambitious target of having 450 GW of renewable energy by 2030.
- Owing to the above factors increasing renewables with supportive government policies is expected to hamper the growth of the Indian Coal Market in the forecast period.
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India Coal Industry Overview
The India coal market is semi-consolidated. Some of the major players in the market (in no particular order) include Adani Group, Coal India Limited, JSW Energy Ltd, NTPC Ltd, and Jindal Steel & Power Ltd., among others.
India Coal Market Leaders
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Coal India Limited
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JSW Energy Ltd
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NTPC Ltd
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Jindal Steel & Power Ltd
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Adani Power Limited
- *Disclaimer: Major Players sorted in no particular order
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India Coal Market News
- February 2023, the 2600 megawatt Singareni Thermal Power Plant (STPP) at Pegadapalli in Mancherial district is all set to become South India's first public sector coal-based power generating station and the country's first among State Public Sector Undertakings (PSU).
- November 2022, Following the contract award for a 1,320 megawatt (MW) thermal power plant in Talcher, Odisha, NTPC Ltd concluded contracts for four additional coal-fired power projects over the next three years. These four projects will increase energy generation capacity by 4.8 gigatonnes (GW).
India Coal Industry Segmentation
Coal is a combustible black or brownish-black sedimentary rock that forms rock strata known as coal seams. Coal is mostly carbon, with trace amounts of additional elements such as hydrogen, sulfur, oxygen, and nitrogen.
The India coal market is segmented by application. By application, the market is segmented into power generation (Thermal Coal), coking feedstock (Coking Coal), and others. For each segment, the market sizing and forecasts have been done in volume.
| Application | Power Generation (Thermal Coal) |
| Coking Feedstock (Coking Coal) | |
| Others |
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India Coal Market Research FAQs
How big is the India Coal Market?
The India Coal Market size is expected to reach 1.04 billion tons in 2025 and grow at a CAGR of 7.57% to reach 1.50 billion tons by 2030.
What is the current India Coal Market size?
In 2025, the India Coal Market size is expected to reach 1.04 billion tons.
Who are the key players in India Coal Market?
Coal India Limited, JSW Energy Ltd, NTPC Ltd, Jindal Steel & Power Ltd and Adani Power Limited are the major companies operating in the India Coal Market.
What years does this India Coal Market cover, and what was the market size in 2024?
In 2024, the India Coal Market size was estimated at 0.96 billion tons. The report covers the India Coal Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Coal Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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India Coal Industry Report
The Indian coal market is a significant segment of the country's energy sector, driven primarily by the demand for power generation through thermal coal. The market encompasses various applications, including coking feedstock and other industrial uses. The increase in India's coal production aims to meet the rising energy demands, supported by extensive coal resources.
Despite the challenges such as environmental concerns, occupational health risks, and market volatility, the coal industry remains a crucial part of India's economy. Government policies promoting renewable energy sources are tempering the market growth, pushing for a reduction in reliance on coal. The future of India's coal market will be influenced by global economic conditions, technological advancements, and the need for environmental sustainability and social responsibility.
Key players in the Indian coal market are actively optimizing their operations to meet market demands. The industry's growth rate and market value are critical metrics, with industry analysis providing insights into market trends and industry statistics. Market leaders are navigating the dynamic landscape, focusing on industry research and market segmentation to stay competitive.
Industry reports and market data offer a comprehensive market overview, including market forecast and market growth predictions. The market outlook highlights the ongoing developments and market review, while industry information and industry size provide a detailed understanding of the sector.
The report example and report pdf offer valuable insights into the market predictions and industry trends. Research companies play a vital role in providing industry analysis and market segmentation, ensuring that stakeholders have access to accurate and up-to-date information.
In summary, the Indian coal market is poised for growth, driven by the demand for thermal power generation and supported by extensive coal resources. However, the market must navigate challenges such as environmental sustainability and government policies promoting renewable energy. Industry reports, market data, and research companies provide valuable insights into the market, helping stakeholders make informed decisions.
