The Ministry of Coal has reported an 8.5% reduction in coal imports for blending in the power sector during the first half of the current fiscal year (April-September), attributed to increased domestic coal production. Despite a 4.97% rise in coal-based power generation over the same period last year, blending coal imports decreased from 10.70 million tonnes (MT) to 9.79 MT, highlighting a drop due to improved domestic supply.
India, which has the fifth-largest coal reserves globally and is the second-largest consumer, still relies on imports for certain grades, especially coking and high-grade thermal coal needed by industries such as steel, according to the Ministry of Coal.
Overall coal imports rose slightly by 2.2% during April-August 2024-25, totaling 111.20 MT, compared to 108.81 MT in the same period last year. The non-regulated sector, however, saw a 10.3% drop in imports, aligning with India’s goal of self-sufficiency in coal. The power sector’s import growth largely came from imported-coal-based power plants, which saw a 53.1% increase to 26.14 MT.
In financial terms, total coal import costs fell by 9.69%, saving Rs 12,929.44 crore, as imported coal expenses for April-August 2024-25 stood at Rs 1,20,532.21 crore, down from Rs 1,33,461.65 crore last year.
Domestic coal production rose by 5.79% in the April-September 2024 period, reaching 453 MT compared to 428.21 MT in FY 2023-24. The ministry emphasized that this growth aligns with government efforts to reduce foreign exchange outflow, enhance energy security, and support sustainability by lowering dependency on imported coal through ongoing initiatives to boost domestic output.
