CASE STUDY: INDIA

India's energy system is heavily reliant on fossil fuels, which provided 75% of its total energy supply in 2017. The state derives significant revenue from this sector—17.8% of general government revenue in 2017—but also provides substantial subsidies. While India has set ambitious renewable energy targets, including 450 GW, coal is projected to remain a mainstay of the energy mix through 2040. The government faces risks from stranded assets, with approximately 40 GW of coal-fired power plant capacity identified as "non-performing" as of 2018.

• India possesses significant fossil fuel reserves, with 2018 proved reserves accounting for 15% of the global total for coal, 0.7% for gas, and 0.3% for oil, totaling an equivalent of 266 GtCO2.
• Fossil fuels are central to India's energy supply and economy; in 2017, they constituted 75% of the total energy supply and 61% of domestic energy production.
• The Indian government relies heavily on the fossil fuel sector for revenue, with taxes, duties, and fees on production and consumption generating 17.8% of general government revenue in 2017.
• State-owned enterprises (SOEs) dominate the sector: Coal India Limited (CIL) accounted for 84% of total coal production in 2016, and the Oil and Natural Gas Corporation (ONGC) accounted for approximately 61.5% of total oil output.
• India faces substantial asset stranding risks; as of the end of 2018, about 21% of total installed capacity (40 GW) of coal-fired power plants was classified as "non-performing," and 25 GW of gas-fired capacity is largely stranded.
• Despite commitments to increase renewable energy capacity to 450 GW, coal is expected to remain a mainstay, with coal-based power generation capacity potentially reaching 330–441 GW by 2040.
• The IMF estimated that the value of undertaxing fossil fuel consumption in India in 2017 was USD 88 billion for climate change effects and USD 127 billion for air pollution impacts, totaling roughly 45% of general government revenue.
• Fossil fuel subsidies in India are significant; OECD estimates of budgetary transfers and tax expenditures equal 0.4% of GDP, while IEA estimates of regulated prices add another 0.5% of GDP.

APA

Garg, V., & Geddes, A. (2019). CASE STUDY: INDIA. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/beyond-fossil-fuels-india.pdf

Chicago

Garg, Vibhuti, and Anna Geddes. CASE STUDY: INDIA. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/beyond-fossil-fuels-india.pdf.

Wikipedia

{{cite report |last1=Garg |first1=Vibhuti |last2=Geddes |first2=Anna |title=CASE STUDY: INDIA |publisher=International Institute for Sustainable Development |date=November 2019 |url=https://www.iisd.org/system/files/publications/beyond-fossil-fuels-india.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{garg2019case, author = {Garg, Vibhuti and Geddes, Anna}, title = {{CASE STUDY: INDIA}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = nov, url = {https://www.iisd.org/system/files/publications/beyond-fossil-fuels-india.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }