India is making a strategic misstep by expanding coal production instead of accelerating investment in renewable energy. As the climate crisis intensifies, the country’s decision to reopen 32 defunct coal mines and develop five new ones risks undermining its long-term energy and environmental goals.
Coal India, the world’s largest coal producer, says the move is necessary to meet growing energy demand, especially as the country pushes industrialization and connects more homes to the grid. Most of India’s electricity, about 74 percent, still comes from coal, and the company operates 310 mines supplying three-quarters of national coal needs. The government expects domestic coal production to reach 1.5 billion tonnes annually by 2030.
But this expansion comes at a cost. The reopened mines were previously shut due to inefficiency, and much of Coal India’s output comes from polluting opencast operations. Despite assurances of sustainable practices, these projects commit the country to high emissions for decades. PM Prasad, Coal India’s chair, projects coal usage will peak by 2035, decline by 2047, and phase down by 2070. That timeline is far too slow to meet urgent climate goals.
India has pledged net zero carbon emissions by 2070 and aims to reduce coal’s share in electricity generation to 55 percent by 2030 and 27 percent by 2047. Yet progress is lagging. Last year, renewable energy investment totaled $13 billion, well below the $68 billion needed annually to reach 500 gigawatts of green power by 2030, according to energy think tank Ember.
Though India has significant coal reserves and energy security concerns, expanding fossil fuel reliance risks creating stranded assets and delaying the adoption of cleaner technologies. Renewable energy, combined with advancing battery storage, offers a more sustainable and increasingly affordable solution.
India’s push to become a manufacturing hub must align with its climate commitments. Continuing to invest heavily in coal threatens both environmental and economic progress. Rather than reviving outdated and inefficient mines, the country should focus on scaling up clean energy infrastructure to meet growing demand.
India has the potential to lead the global energy transition. To do so, it must act with urgency, redirect investments, and commit fully to a sustainable future.