India Commits to Coal as Iran Energy Crisis Takes Hold

India to Launch 15th Round of Commercial Coal Mine Auctions Amid Rising Energy Needs

As the Iran war disrupts global energy supplies, India, like other major economies, is increasingly turning to coal to meet its fuel demand. The government is set to launch the 15th round of commercial coal mine auctions and hold a stakeholder consultation on Friday, aimed at boosting private sector participation in coal production amid rising energy needs.

The commercial coal mining programme, launched in 2020, has seen over 100 blocks offered across previous rounds, marking a key step in the government's push to liberalise the coal sector. The Ministry of Coal is set to organise a stakeholder consultation on 'Atmanirbhar Bharat: Coal for Energy Security', along with the launch of the 15th Round of Commercial Coal Mine Auctions, on April 17, 2026.

Coal demand has surged following disruptions in liquefied natural gas (LNG) supplies due to the Iran war. LNG is widely used in industries such as steel, cement, and sponge iron. To offset supply constraints and ensure grid stability ahead of peak demand, India has leaned more on coal.

The latest round will include a mix of fully explored and partially explored coal blocks, open to experienced miners, new entrants, and technology-driven companies, the ministry said.

| Country | Coal Demand (MW) | | --- | --- | | India | 55.18 million tonnes | | Japan | 24 days based on recent consumption | | Bangladesh | 171.90 million tonnes | | Czech Republic | | | Netherlands | | | Poland | |

Government data released last week showed that coal stocks remain comfortable. Adequate buffer stocks of coal have been maintained across the value chain. Coal stocks at thermal power plants stand at 55.18 million tonnes as on April 6, 2026, sufficient for about 24 days based on recent consumption. In addition, about 171.90 million tonnes of coal is available at mines and in transit, including stocks at Coal India Limited, Singareni Collieries Company Limited, captive mines, ports, and transit.

The Centre also said that Coal India Limited and Singareni Collieries Company Limited have absorbed higher input costs without passing them on to consumers.

India is not alone in returning to coal. Japan has indicated a shift back to coal-fired power to meet energy needs, while Bangladesh is relying on coal plants to bridge supply gaps. In Europe, countries such as the Czech Republic, Netherlands, and Poland could also revisit coal usage if disruptions in the Strait of Hormuz persist.

The global trend suggests that countries are shifting their strategies long-term, relying more on coal for longer, building out their renewables faster, and reducing their exposure to natural gas.