The iron and steel sector’s share of cumulative coal consumption in the country is expected to dip from 7 per cent in 2010-11 to 5 per cent in 2031-32. On the other hand, the cement sector’s share of total consumption will rise from 3 per cent to 5 per cent over the next two decades.
The electricity sector will continue to account for the bulk of coal consumption, but its share will fall from 70 per cent in 2010-11 to 60 per cent in 2031-32. In tandem, the share of other sectors in total coal consumption will rise to 30 per cent.
Indian coal production rose by 28.5 per cent from 431 million tonnes in 2006-07 to 554 million tonnes in 2011-12, but approximately 84 million tonnes of demand had to be met via imports.
By the end of the 12th Five-Year Plan, coal demand is expected to rise to 682.1 million tonnes, whereas supply is projected at 492.2 million tonnes. This will necessitate the import of around 189 million tonnes of coal to fulfil the demand.