Security & Self-sufficiency

From a security perspective, a significant goal for all sovereign states is to achieve self-sufficiency wherever possible. In the energy sphere, this will mean that Indian government will look to rely as little on imports and as much on domestic production to meet its energy needs. Unfortunately, this will mean an increased domestic production of coal, despite the environmental costs of this choice.

• Unlike oil and gas reserves, existing coal reserves and production capacities are largely located in the same countries that consume most of the coal, namely China, US, India and former Soviet Union. What this means is that, “the supplies of coal are less likely to be disrupted for such geopolitical reasons that are much feared in the cases of oil and gas.” Therefore, the motivation for increasing coal production could well be strategic more than anything else, and if this is the case, it is likely that it will override all other concerns, including environmental ones.