India Almost Doubles Planned Coal Mining Capacity in 2025

India nearly doubled its planned coal mining capacity in 2025, according to a Reuters citing a Global Energy Monitor report. The increase also pushed up the amount of coal mining capacity being planned worldwide. 

India’s proposed capacity rose to 638 million metric tonnes per annum (mtpa), from 329 mtpa in 2024. The increase of 309 mtpa accounted for almost all of the 11% rise in the global pipeline to 2,521 mtpa. 

Projects Concentrated In Two States 

Most of the proposed capacity in India is in Jharkhand and Odisha. The increase comes as the government works to raise coal production to meet higher electricity demand. 

India has set a coal production target of nearly 1.15 billion tonnes for 2025-26, about 100 million tonnes more than the previous year. The target rises to 1.5 billion tonnes by 2030. 

Global Coal Pipeline 

Global Energy Monitor said projects proposed in 2025 could add around 2.5 billion tonnes of coal production capacity each year. Coal mine proposals had declined after the Covid-19 pandemic but started increasing again last year. 

The rise in proposals came despite the International Energy Agency’s forecast that global coal demand will plateau by 2030. The global electricity mix is also changing, with wind and solar overtaking coal in 2025. 

New Mine Capacity Drops 

While planned capacity increased, new coal mining capacity entering operation fell during the year. Global additions declined nearly 40% to 113 mtpa in 2025. 

The decline was mainly recorded in China and Australia. New capacity additions fell 44% in China, while Australia recorded a 96% decline compared with 2024. 

Demand Outlook 

The difference between planned projects and actual additions was also visible in India’s plans. The country is increasing its mining targets as electricity demand rises, including during periods of high temperatures. 

Global Energy Monitor noted that the growth in planned mines could become a concern for producers if coal demand weakens faster than expected. This is particularly relevant as renewable generation continues to expand. 

Read More: India Retail Inflation Rises to 4.45% in July 2026 as Food Inflation Accelerates to 5.52%! 

Conclusion 

India was the main contributor to the increase in planned coal mining capacity in 2025. At the same time, new mine additions declined globally, and coal demand is expected to see limited growth through 2030. 

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