Coal Demand To Touch 1.6 Bn Tonnes By 2030, Says Coal Secy Vikram Dev Dutt

India’s annual coal requirement is expected to rise to around 1.6 billion tonnes by 2030, Coal Secretary Vikram Dev Dutt said on Friday, highlighting the growing need for transparent and market-based mechanisms for trading and pricing the fuel.

Addressing the Global Commodities Conclave in Mumbai, Dutt said coal remains central to India’s energy requirements, with domestic production having crossed the 1-billion-tonne mark in each of the past two financial years, as per PTI.

"Coal demand is projected to rise further to an estimated 1.6 billion tonnes by 2030," Dutt said, adding that we are at an "inflection point" where we are shifting from a scarcity scenario to one of surplus.

Dutt said the changing market situation calls for more efficient systems to facilitate coal trade and ensure better price discovery. He noted that the proposed coal exchange could play an important role in creating a transparent marketplace for buyers and sellers.

Coal India has so far held a near-dominant position in the domestic coal market, he said. While the existing framework was suitable for the conditions under which it was created, Dutt said it may no longer adequately address the requirements of a large and evolving market such as India.

"While this model did serve its purpose for the time that it was designed, it does not fully reflect the competitive, transparent and efficient price discovery that a market of India's scale and India's maturity deserves," he added, as per PTI.

Coal Exchange Planned In Coming Months

The government-established coal exchange is expected to provide commercial and captive coal producers access to a wider marketplace.

The platform would allow buyers and sellers to place bids simultaneously, helping determine prices through competitive market participation.

Dutt said the government intends to operationalise the coal exchange in "the months ahead", although he did not specify a timeline.

According to the PTI, the proposed platform would also act as a central counterparty for clearing and settlement, which could strengthen risk management for market participants. Over time, it may additionally support the development of a derivatives market for coal.

Dutt said the proposed exchange forms part of the government’s wider effort to improve ease of doing business and transparency in the sector. He added that such reforms could support India’s energy security and industrial expansion while contributing to the Viksit Bharat 2047 vision.