As War Rages: Coal Anchors India’s Energy Security

As the West Asian conflict continues to unsettle global oil and gas corridors, the urgency of energy security is no longer abstract, it is immediate and real. Coal, for now, remains India’s most reliable fallback, keeping the lights on when uncertainty looms.

May 29, 2026. By News Bureau

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Dr. Jayanta Mitra

Dr. Jay Ganesh Pandey

The Energy and Resources Institute

Notwithstanding energy security

Coal Gasification Mission

The ongoing conflict in West Asia has again laid bare the fragility of global energy supply chains underscoring how deeply geopolitics continues to shape the economic stability. Far from an era of cooperative interdependence, this crisis reaffirms core insights emerging out of realism. Needless to say, contemporary international politics still remains defined by anarchy, where states relentlessly pursue security in an uncertain world. Yet, as events unfold, security appears not as a settled condition, but as a perpetually contested and elusive goal.

For India, heavily reliant on imported oil and gas, such crises are not distant geopolitical events but immediate economic and strategic concerns. In this uncertain landscape, the question is not merely about diversifying imports, but about securing reliable and resilient sources of energy, an imperative that brings coal back into sharp focus.

Persistent Import Dependence

India imports around 85 percent of crude oil and 50 percent of natural gas. It is also the third largest importer of crude oil in the world. Notwithstanding the heightened import dependency, the exposure to the vulnerable supply chains and maritime chokepoints further exacerbates the threat to the energy security. In the ongoing West Asian conflict, the blockade of the Strait of Hormuz jeopardised around 40 percent of India’s oil supplies, unleashing the domestic LPG crisis. The oil prices have also skyrocketed surpassing USD 100 per barrel as one-fifth of the global oil supplies also transit through the Strait of Hormuz.

Coal as Strategic Anchor

Has it not been coal, India’s energy security would have been severely paralysed, especially in current scenario of Israel-Iran conflict. India has a long history of coal dependence especially due to its large abundance domestically. India has around 400 billion tonnes of coal reserves and accounts for about 55 percent of the energy mix. India has witnessed highest ever coal production in 2024-25 crossing 1000 million tonnes. It also contributes over 70 percent in electricity generation.

The presence of coal lowers the risks of any disruption of energy imports. Coal, as cornerstone of India’s energy security meets the four pillars of the four ‘A’s of energy security- Affordability, Availability, Acceptability and Accessibility. As per Cherp and Jewell, energy security refers to the “low vulnerability of vital energy systems”- a condition that is substantially enabled by coal in the Indian context by providing a domestically available, reliable and scalable energy source.

Notwithstanding energy security, the long-term reliance on coal has produced significant dependency for livelihoods and regional development. Around 3.6 million people are employed across coal value chain in different sectors. Coal production generates substantial revenue for both Centre and state governments. It contributes around 50 percent of freight revenue to the Indian Railways and around Rs. 14,000 crores as royalty to the state governments, excluding the contribution to District Mineral Foundation Funds as well as other cess and levies.

However, the underlying imperative of the energy transition against the backdrop of climate change are posing severe challenges to coal industry. India faces a complex paradox due to the contestations between the climate action imperatives and energy security concerns.

Pragmatism over Idealism

The continued dependence and exploitation of coal for energy needs is unsustainable for a greener earth. It must be replaced by the low carbon and renewable energy sources. However, the transition away from coal-based industries shall be consistent and gradual rather than abrupt and disruptive. The coal demand in India is forecasted to peak around 2045, which provides a two-decade window of opportunity for regional economic diversification to absorb the workforce and communities dependent on coal. As a silver lining, integrating Carbon Capture and Storage with clean coal technology offers a transitional solution to continue relying on coal in a sustainable way in future. They promise to cut emissions from existing coal plants while renewable energy continues to scale up.

Under India’s push for clean coal pathways, the Coal Gasification Mission aims to convert 100 million tonnes of coal into gas by 2030, turning a traditionally polluting resource into a relatively cleaner fuel for industry. Alongside this, Mission Coal Bed Methane is tapping methane trapped in coal seams as an alternative energy source, while Mission Coking Coal seeks to reduce India’s heavy dependence on imports for steel production. Together, these initiatives signal a shift, not away from coal just yet, but towards using it more efficiently and responsibly as the country navigates its energy transition.

As the West Asian conflict continues to unsettle global oil and gas corridors, the urgency of energy security is no longer abstract, it is immediate and real. Coal, for now, remains India’s most reliable fallback, keeping the lights on when uncertainty looms. But this dependence cannot define the future. Coal may anchor today’s security, but it cannot power tomorrow’s sustainability. The path ahead lies not in abrupt exits, but in a sustainable transition, one that steadily reduces reliance on coal while safeguarding livelihoods and ensuring energy access. India needs to navigate the paradox of energy security and net zero ambition, consequently securing the present without compromising the future.