Energy@G-20: 50 mn Indians directly depend on coal mining, says govt

Virendra Pandit

New Delhi: In view of the direct dependence of 50 million people on coal mining in the country, India will press for a “just energy transition” at the ongoing G-20 parleys, a government official said on Monday.

India, seeking to increase the pace of development in consonance with an increasingly aspirational population, has chosen a path of climate justice and aims to pursue a balanced growth model.

This model should be based on the principles of “Common but Differentiated Responsibilities and Respective Capabilities”, Union Coal Secretary Amrit Lal Meena told reporters in Mumbai where the third meeting of the G-20 Working Group on Energy Transitions started on Monday.

“About 50 lakh people are engaged directly or indirectly in coal mining activities, especially in eastern Indian states. So, a just transition of energy to other resources should be factored in,” he said.

The issues regarding the livelihoods of these 50 lakh people, providing them with alternate vocations, skulking, healthcare, and education must be considered as we go ahead.

He said India has identified 30 mines where the coal mining has been over and companies have started a 2-3 years exercise of closure.

Besides, India is also putting the de-coaled land to environmentally friendly use, which may include creating forests by putting fly ash or using it for agricultural purposes, Meena said.

India still needs coal to help achieve the economic growth targets, and the government is also pushing forward with the agenda of higher private sector involvement in coal mining, he said.

The aim is to get up to a fourth of the overall coal extracted by private enterprises by 2030, Meena said, adding that response from the private sector for the seventh round of coal mine auctions has been “encouraging.”

Since 2020, 87 mines have been allotted to private sector companies in six rounds of auction, and the target is to have a private installed capacity of 500 million tons at peak rate capacity. After allotment, it takes up to four years for a mine to start production.

Meena said four of the 87 mines have already started production, and a majority of the rest will do so by 2024-25.

India is targeting an increase in overall coal production to 1,012 million tons in FY24, up from 892 million tons in FY23.

The coal production will hit a peak in 2040, after which it will plateau as the country will start relying more on renewable sources, he said.

However, India will continue to import coking coal used in steel plants because there is no local production of it at all, he added.