Coal will remain central to India's energy mix until 2047, the chairman of state-run Coal India Ltd said, as rising power demand from industrialisation and urbanisation continues to drive consumption despite ambitious energy transition goals.

Coal India is actively expanding its renewable energy business and exploring coal export opportunities, chairman B. Sairam told Indian media outlet Mint.

Coal India supplies 80% of its output to the power sector, where demand continues to grow. In July, the company's coal supplies to the power sector rose nearly a fifth year on year to 49.77 million tonnes, while supplies to non-regulated sectors increased 21% to 14.42 million tonnes from 11.89 million tonnes a year earlier.

Despite strong power demand expectations, Coal India has lowered its coal production target for fiscal 2026-27 (April 2026-March 2027) to 815 million tonnes from 875 million tonnes in the previous fiscal year, citing high coal inventories, Sairam said.

Coal will remain the core of India's energy mix until 2047, when the country aims to achieve its "Viksit Bharat" (Developed India) goal and join the ranks of developed nations, he said.

"I foresee that that will be the year when India will be joining the exclusive bandwagon of select countries where the per capita energy consumption is upward of 4000 KWh. Currently its around 1600 KWh. The demand will come from industrialization," Sairam said.

For the current fiscal year, Sairam noted that while heavy rainfall in the previous fiscal year had kept power demand low, demand has rebounded significantly this year, prompting power plants to build up inventories as early as May.

The delayed monsoon season this year, arriving 20-25 days later than usual, has also boosted agricultural power consumption, mainly for irrigation, lifting overall electricity demand.

Coal India is expanding its renewable energy portfolio, planning to build 3,000 MW of solar power capacity by fiscal 2027-28 to partially offset thermal power demand. The company also aims to expand total installed solar capacity to 9,500 MW by fiscal 2029-30.

Sairam said the company will push to further reduce dependence on imported coal. Indian steel mills import about 60 million tonnes of coking coal annually, which is difficult to substitute, he noted. Some power plants designed for imported coal also find it more cost-effective to use imports.

The company will encourage some coal-fired power plants to blend domestic coal with imported coal. "If we are able to give good quality (low-ash content) coal then they are ready to substitute," he said.

Non-regulated sectors including cement, fertiliser and other users also rely on imported coal because strong power sector demand limits their access to domestic supply.

"In terms of substituting imports, NRS is an attractive option, second are domestic coal-based power plants which also import coal for blending," Sairam said, adding that the company is also considering exports and is looking at exporting coal to Nepal.