The statement comes after a landmark climate change deal in Paris with the approval of India, China and the US, after days of tough negotiations with the legally-binding pact seeking to limit global warming to "well below" 2 degrees Celsius.
"Dependence on coal cannot be ruled out totally. There are no other alternatives available," Coal Secretary Anil Swarup said.
He added that "The concern of environment will always be there by ensuring that there are proper measures like afforestation at more than double the land that is mined," Coal Secretary Anil Swarup said.
The government is eyeing to achieve 1.5 billion tonnes of coal production by 2020.
Of the 1.5 billion tonnes, Coal India which accounts for over 80 per cent of the domestic coal production is eyeing an output of one billion tonnes.