India's Coal Surge
India Nearly Doubles Coal Capacity, Driving Global Pipeline Despite Renewable Growth
Key Points
Globally, coal mine proposals rose to 837 in 2025, up about 12% from 2024, while the global pipeline of proposed capacity climbed to 2,521 Mtpa; India accounted for the largest share of the increase.
New capacity additions in 2025 fell nearly 40% to about 113 Mtpa, with declines in China and Australia driving the slowdown.
In India, record additions of wind and solar helped meet almost all new demand in some regions, contributing to a fall in coal-fired generation and a reduction in thermal coal imports.
Global data provider GEM tracks coal projects at all stages—from proposed to operating—via its Global Coal Mine Tracker, illustrating how the India-driven rise in proposed capacity shapes the broader pipeline.
India nearly doubled its planned coal mining capacity to 638 million tonnes per annum (mtpa) in 2025, up from 329 mtpa just a year earlier, according to Global Energy Monitor. That surge drove almost all of the global increase in proposed coal capacity, which climbed to 2,521 mtpa worldwide.
The jump came even as wind and solar overtook coal in the global electricity mix for the first time in 2025. India is betting big on coal to keep up with rising power demand — but analysts warn the gamble could backfire if demand weakens faster than expected.
Jharkhand and Odisha Lead India's Coal Rush
Most of India's new planned coal capacity is concentrated in two states: Jharkhand and Odisha. The Guardian reported that both states doubled their proposals for new coal mines in 2025. India also saw an 11% rise in the number of proposed new coal mining projects overall.
The Indian government has set an ambitious target of about 1.15 billion tonnes of coal production in the 2025-26 fiscal year, according to AOL UK. The longer-term goal is even bigger — 1.5 billion tonnes by 2030. New Delhi says it needs the coal to keep the lights on as electricity demand keeps climbing.
Global Mine Proposals Rise, But Actual Additions Fall Sharply
Globally, the number of proposed coal mines rose about 12% to 837 in 2025, according to Global Energy Monitor. But proposals are not the same as shovels in the ground. Actual new capacity added in 2025 fell nearly 40%, dropping to just 113 mtpa.
China and Australia led the decline in new additions, according to OilPrice.com. The gap between plans and real construction suggests that many proposed mines may never get built — especially if coal demand starts to fall faster than governments expect.
Renewables Grow, But Coal Still Pays India's Bills
India added record amounts of wind and solar power in recent years. In some regions, those clean energy sources met almost all new electricity demand. That helped push down coal-fired generation and cut thermal coal imports, according to The Guardian.
Yet India still relies heavily on coal for baseload power. The government argues that boosting domestic coal production reduces dependence on costly imports. Streamline Feed noted that India is expanding its carbon extraction pipeline despite global pressure to phase out fossil fuels.
Analysts Warn of Stranded Asset Risk as Energy Shift Accelerates
Building coal mines takes years and costs billions. Analysts warn that mines planned today could become worthless — so-called stranded assets — if demand drops before the projects pay off. The risk is real: wind and solar overtook coal in the global electricity mix for the first time ever in 2025.
Global Energy Monitor tracks coal projects at every stage, from proposed to operating, through its Global Coal Mine Tracker. The data shows a world still split between a fossil-fuel present and a renewable future — with India sitting squarely at the center of that tension.
Sentiment
Mostly PositivePublishers
12
Articles
23
Reach
35
