India's Mineral Dependency and Coal Phase-Down: Economic Survey 2023-24
COAL & MINING

India's Mineral Dependency and Coal Phase-Down: Economic Survey 2023-24

The Economic Survey 2023-24, tabled in Parliament emphasizes the urgent need for India to recognize and tackle the challenges posed by its dependence on China for critical minerals, essential for e-mobility and renewable energy. It also underscores the need to evaluate the economic impacts of phasing down coal on bank balance sheets as India accelerates its green transition.

As part of its national commitment to limiting the global temperature rise to 1.5 degrees Celsius, India has pledged to reduce emissions by 45% below 2005 levels by 2030, achieve 50% cumulative electric installed capacity from non-fossil fuel-based sources, and create a carbon sink of 2.5 to 3 gigatons of CO2 equivalent through additional forest and tree cover.

The report highlights the necessity of addressing the challenges posed by reliance on China for critical minerals, crucial for e-mobility and renewable energy generation. It also points out the need to examine the impact of reducing coal use on Indian Railways' freight revenues and the overall balance sheets of banks.

Internationally, India has faced pressure from developed countries to rapidly phase down unabated coal power. At forums such as the annual UN climate conferences, India has defended the coal interests of the Global South, arguing that historically responsible developed nations should not hinder the development of these regions. India currently relies on coal for about 70% of its power generation.

The economic survey also stresses the importance of developing or acquiring affordable storage technology for renewable energy, considering India's limited land and capital resources. It calls for a decision on the role and share of nuclear energy in the national energy mix.

According to the International Energy Agency, China commissioned as much solar PV in 2023 as the entire world did in 2022, with significant growth in wind additions. The survey also underscores nuclear energy as the cleanest and safest option, despite public concerns over rare but impactful events like Three Mile Island, Chernobyl, and Fukushima.

Lastly, the survey calls for consistency in e-mobility policies, ensuring the optimal energy mix and grid stability for widespread adoption. It also suggests studying the implications of replacing internal combustion engine vehicles with electric ones, particularly on petrol and diesel sales and the associated tax revenues.

The Economic Survey 2023-24, tabled in Parliament emphasizes the urgent need for India to recognize and tackle the challenges posed by its dependence on China for critical minerals, essential for e-mobility and renewable energy. It also underscores the need to evaluate the economic impacts of phasing down coal on bank balance sheets as India accelerates its green transition. As part of its national commitment to limiting the global temperature rise to 1.5 degrees Celsius, India has pledged to reduce emissions by 45% below 2005 levels by 2030, achieve 50% cumulative electric installed capacity from non-fossil fuel-based sources, and create a carbon sink of 2.5 to 3 gigatons of CO2 equivalent through additional forest and tree cover. The report highlights the necessity of addressing the challenges posed by reliance on China for critical minerals, crucial for e-mobility and renewable energy generation. It also points out the need to examine the impact of reducing coal use on Indian Railways' freight revenues and the overall balance sheets of banks. Internationally, India has faced pressure from developed countries to rapidly phase down unabated coal power. At forums such as the annual UN climate conferences, India has defended the coal interests of the Global South, arguing that historically responsible developed nations should not hinder the development of these regions. India currently relies on coal for about 70% of its power generation. The economic survey also stresses the importance of developing or acquiring affordable storage technology for renewable energy, considering India's limited land and capital resources. It calls for a decision on the role and share of nuclear energy in the national energy mix. According to the International Energy Agency, China commissioned as much solar PV in 2023 as the entire world did in 2022, with significant growth in wind additions. The survey also underscores nuclear energy as the cleanest and safest option, despite public concerns over rare but impactful events like Three Mile Island, Chernobyl, and Fukushima. Lastly, the survey calls for consistency in e-mobility policies, ensuring the optimal energy mix and grid stability for widespread adoption. It also suggests studying the implications of replacing internal combustion engine vehicles with electric ones, particularly on petrol and diesel sales and the associated tax revenues.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code