Jharkhand: India has driven a sharp increase in proposed coal mining projects in 2025, even as global coal demand is showing signs of plateauing and new mine openings continue to decline, according to a new report by Global Energy Monitor.
The report found that enough new coal mining projects were proposed worldwide last year to potentially add around 2.5 billion tonnes of annual coal production, an increase of 11 percent from the previous year.
India accounted for a significant share of the increase, with new mine proposals rising mainly in Jharkhand and Odisha. Proposals in the two states doubled in 2025, reflecting the government’s plans to expand domestic coal production.
India aims to increase coal output by nearly 100 million tonnes to around 1.15 billion tonnes in the 2025–26 fiscal year. The target is intended to meet rising electricity demand linked to economic growth and increasing power requirements during severe heatwaves.
However, the expansion comes as global energy markets increasingly shift towards renewable sources. Global Energy Monitor noted that the number of new coal mines entering operation has continued to fall in recent years.
Around 113 million tonnes of annual coal production capacity began operations globally in 2025, down 40 percent from 2024. This was the lowest annual figure recorded in a decade. New mine openings declined sharply in China and Australia, falling by 44 percent and 96 percent, respectively.
The report warned that the growth in India’s proposed coal projects could conflict with expectations of weaker global coal demand later this decade. The International Energy Agency has forecast a slowdown in coal demand as renewable electricity generation expands.
At the same time, wind and solar power surpassed coal in the global electricity generation mix for the first time last year, according to separate analysis by Ember. China and India were among the key contributors to the growth in renewable generation.
Global Energy Monitor senior researcher Tiffany Means said the economic case for expanding coal mining is becoming weaker as low-cost clean energy increasingly replaces coal. The report urged governments to reconsider projects still in the development pipeline, warning that approving new coal capacity could lock countries into decades of additional fossil fuel production.
India’s coal expansion therefore highlights the growing tension between rising energy needs, economic development and global efforts to reduce dependence on fossil fuels.
POPULAR | At least 15 dead after boat capsizes on Zimbabwe’s Lake Kariba
