Coal and India’s Energy Security
Context
The Economic Survey 2024-25 emphasises coal’s role as a stable and affordable energy source for India’s economic growth. Meanwhile, the Union Budget 2025–26 introduced several measures to boost renewable energy.
Relevance:
GS03 (Economy)
Coal and India’s Energy Security:
- Abundant Reserves: India holds 10% of global coal reserves but only 0.7% of natural gas reserves, and coal-based power plants have received heavy investments, making a rapid transition difficult.
- Lessons from Global Transitions: France, the EU, and the US continue to rely on fossil fuels despite climate commitments.
- Climate Finance Gap: At COP 29, developed nations pledged only $300 billion (against the required $1 trillion), limiting India’s clean energy shift.
- Congestion Costs: Shifting to renewables can increase electricity costs due to transmission inefficiencies.
Union Budget 2025-26: Key Renewable Energy Announcements
- Customs Duty Exemptions: Critical minerals like lithium, cobalt, and zinc are exempted from customs duties to support renewable energy infrastructure.
- National Critical Minerals Mission (NCMM): ₹410 crore allocated to NCMM to enhance domestic production and global mineral acquisitions.
- Nuclear Energy Mission: ₹20,000 crore set aside for Small Modular Reactors (SMRs), with private sector involvement to achieve the goal of operationalising at least five SMR reactors by 2033.
