Most discussions about India's annual budget focus on tax increases for the middle class. But the country’s decision to increase coal consumption has been ignored by many media entities in India and the West. [emphasis, links added]
The economic survey as a precursor to the fiscal budget often heralds the country's future direction in various governance areas such as energy and environment.
As in previous years, this year’s survey showed China will neither reduce coal consumption nor abandon its commitment to economic development, which requires sufficient and affordable energy for hundreds of millions of people.
The future is coal
Coal dominates India's energy landscape, accounting for more than 55% of the country's primary commercial supplies.
In the power sector, coal's role is even more obvious, with coal-fired power plants accounting for about 70% of India's electricity.
It is also an important source for a variety of manufacturers, including steel, sponge iron, cement and paper manufacturers.
The country's energy demand is expected to at least double by 2047, The survey clearly shows that coal will remain the backbone of India’s energy mix for a long time to come.
“Despite being one of the fastest growing economies in the world, India's annual per capita carbon emissions are only about one-third of the global averageThe survey apparently rejects Western criticism of India's carbon dioxide emissions, the number one killer of climate extremists.
In addition, the survey showed that “India’s dependence on oil imports should not be replaced by dependence on solar photovoltaic panel imports.”
It recommends a balanced response to climate change and criticizes policies to reduce emissions at the expense of development.
The Indian government also took the opportunity to criticize the imposition of carbon import taxes on its products this European Union.
The investigation pointed out It is hypocritical for developed countries to criticize India for its CO2 emissions while increasing their own emissions and fossil fuel consumption. This self-contradictory behavior is called “comedy”.
There is no alternative but coal
India's primary energy consumption is 35 megaBtu (British thermal units), ranking third in the world. The country is also the third largest consumer of electricity.
As the world’s fifth largest economy and home to more than 1.4 billion people, India's energy consumption is expected to more than double by 2040.
International Energy Agency forecast India will account for nearly a quarter of global energy demand growth from 2019 to 2040.
Recent data from the Central Electricity Authority (CEA) shows that coal-fired power generation has been growing steadily. In the 2022-23 fiscal year, Coal-fired power plants generated 1,043 billion kilowatt-hours of electricity, an increase of approximately 10% over the previous year.
This upward trend has continued until 2023-24, with coal power generation reaching 919 billion units in the first eight months of this fiscal year alone.
CEA has stated By 2030, coal will remain the main source of power generation, accounting for 54% of power generation.
The growth of national coal production in the past three years has reached the highest level in the history of national coal production.
New coal mines approved earlier this year not only increased production but also created 40,560 jobs.
India's enthusiasm for coal is driven by a variety of factors: abundant domestic coal reserves, the need for reliable and affordable energy to fuel industrial growth, and concerns about energy security.
Significant budget allocations for coal production, infrastructure and technology reflect a pragmatic approach to meeting the country's growing energy needs and supporting its ambitious economic goals.
The only smart thing for India to do is to stop wasting time and resources on so-called renewable energy sources, lest it jeopardize its energy security. Apart from, Even with unprecedented growth in wind and solar power generation capacity, they cannot replace coal as the primary energy source.
Read more BizPack reviews
