Addressing a parliamentary committee, minister in charge of coal Pralhad Joshi said the fuel was an affordable source of energy and demand for it had yet to peak in India.

"Thus, no transition away from coal is happening in the foreseeable future in India," Joshi said on Wednesday, adding it would have a big role until 2040 and beyond.

At the COP27 talks taking place until November 18 in Egypt, UN Secretary General Antonio Guterres has called for urgent action to cut emissions, including phasing out coal by 2040 globally.

India has long resisted renouncing coal and manoeuvred with China at last year's COP26 talks, hosted by Britain, to block stronger commitments to quitting it.

Months of declining fuel inventories at power plants culminated in the worst power crisis in more than six years in April, disrupting industrial activity and driving India to accelerate coal mining.

As heatwaves boost air conditioning use and drive up power demand, the government said in a statement coal accounts for more than 51 per cent of India's primary energy requirement and around 73 per cent of power generation.

Richer nations are under pressure to help the poorer world finance a transition to cleaner fuel.

US climate envoy John Kerry on Wednesday announced plans for companies to buy carbon credits to support developing countries switching out of coal power.

The Energy Transition Accelerator (ETA) program, developed by the US with the Bezos Earth Fund and Rockefeller Foundation, is intended to speed up those nations' transitions away from fossil fuels.

Kerry said Chile and Nigeria are among the developing countries that have expressed early interest in the ETA, and that Bank of America, Microsoft, PepsiCo and Standard Chartered Bank have expressed interest in "informing the ETA's development."

Kerry said UN Secretary General Antonio Guterres was supportive of a US-led carbon market initiative provided there were safeguards to it.

Australian Associated Press