India has made notable progress in reducing its dependence on imported coal, with coal imports dropping by 9.2% during the period from April 2024 to February 2025, amounting to 220.3 million tonnes (MT), compared to 242.6 MT in the same period of the previous fiscal year. This significant decline has resulted in foreign exchange savings of approximately $6.93 billion (Rs. 53,137.82 crore).
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A major portion of this reduction came from the Non-Regulated Sector (NRS)—which excludes power utilities—where coal imports declined by 15.3% year-on-year. Meanwhile, despite a 2.87% increase in coal-based power generation during the same period, imports for blending by thermal power plants fell sharply by 38.8%, underlining the country’s push for self-reliance in coal production.
This shift is driven by a series of policy measures taken by the Government of India, including Commercial Coal Mining and the Mission Coking Coal initiative, which aim to boost domestic coal output. As a result, coal production recorded a healthy 5.45% growth in April 2024–February 2025 compared to the same months in FY 2023–24.
Coal continues to be a cornerstone of India’s energy landscape, powering essential sectors such as electricity, steel, and cement. However, limited reserves of coking coal and high-grade thermal coal mean that imports remain necessary to meet the demands of industries like steel.
To address these challenges, the Ministry of Coal is actively working to scale up indigenous production and reduce import dependency. These measures align with the broader national vision of Viksit Bharat, focused on energy self-sufficiency and long-term economic resilience.
By prioritizing domestic output and optimizing resource utilization, India is taking firm steps toward building a sustainable, secure, and self-reliant coal sector to power its development ambitions.
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