Coal will remain the backbone of the country's energy system for the next two decades: Eco Survey

23 Jul 2024

According to the Economic Survey released on Monday, it is anticipated that coal will continue to serve as the foundation of the Indian energy system for the next two decades, and the gradual reduction of dry fuel will heavily depend on the import of crucial minerals required for clean energy and battery storage. The survey tabled in Parliament further said that carbon dioxide removal technologies and carbon capture utilisation and storage should be explored in order to reduce the emissions from the use of coal.

It explains, "The reduction of coal consumption will largely depend on the importation of crucial minerals required for renewable energy and battery storage, unless the country invests in the development of technologies based on its own mineral resources and in the development of technologies that facilitate the reuse, recovery, and recycling of crucial minerals."

It further stated that the adoption of gasification technology in India would transform the coal sector, reduce dependence on imports of natural gas, methanol, and ammonia, and help reduce emissions. Coal is also a vital input in various industries such as steel, sponge iron, cement, and paper, which account for 70 percent of total power generation.