17 October 2026
ADVERTISEMENT
ADVERTISEMENT

Massive Push for Domestic Coal: Imports Dip Sharply as India Saves ₹60,681 Crore in FY25

India reduces coal imports by over 20 MT in FY25; pushes for higher domestic production under new policy, infrastructure and supply reforms.
Indian Masterminds Stories

New Delhi – In a determined push to reduce reliance on imported coal, the Government of India is rolling out a comprehensive strategy to boost domestic coal production, improve policy frameworks, and modernise coal supply logistics. These reforms are part of a wider effort to enhance energy security, cut foreign exchange outflow, and meet growing power demands through indigenous resources.

The Ministry of Coal has introduced several forward-looking policy interventions and infrastructure upgrades aimed at reducing non-essential coal imports, while ensuring uninterrupted supply for key sectors like power and steel.

Boosting Domestic Allocation and Contracts

One of the major steps includes raising the Annual Contracted Quantity (ACQ) for power plants to 100% of their normative requirements—especially benefiting both coastal and non-coastal power plants. This enhancement is expected to directly reduce the volume of imported coal by increasing availability from domestic sources.

To further strengthen long-term supply stability, the government has extended the tenure of coking coal linkages in the Non-Regulated Sector (NRS) auctions to 30 years. This move is designed to attract more industrial players towards domestic sourcing.

Additionally, linkage holders in the power sector are now assured full supply coverage under their Power Purchase Agreements (PPA), regardless of their trigger levels or ACQ constraints—a reform that significantly reduces their dependency on overseas coal markets.

Data-Driven Monitoring and Policy Support

An Inter-Ministerial Committee (IMC) has been actively guiding coal import substitution strategies since 2020. The Ministry of Coal has also launched an Import Data System, ensuring real-time monitoring of coal imports. In tandem, the Coal Import Monitoring System (CIMS) mandates compulsory registration for coal imports, helping the ministry enforce better oversight.

Efforts are continuously being made to ensure that all importable coal is replaced with domestic supply, barring essential imports. A detailed Strategy Paper on Coal Import Substitution has been released to guide this transition.

Sector-Specific Reforms for Steel and Power

In a targeted step to curb coking coal imports, a new auction sub-sector—‘Steel using Coking Coal through WDO Route’—has been launched, promoting the use of domestic washed coking coal. Complementing this, the Coking Coal Mission is working to enhance the availability of coking coal for the steel sector.

Imported Coal-Based (ICB) plants have also been brought under the scope of the Revised SHAKTI Policy, 2025, allowing them to secure domestic coal. Similarly, existing Fuel Supply Agreement (FSA) holders can now procure additional coal under this revised policy once they meet 100% of their ACQ obligations.

Also Read: Ministry of Coal to Launch Exploration Module on SWCS Portal: A Major Leap in Digitizing Coal Sector Approvals

Fast-Tracking Coal Production and Mine Operationalisation

The Ministry is actively fast-tracking the development of coal blocks through regular reviews and streamlined approval processes. The MMDR Amendment Act, 2021, allows captive mine owners to sell up to 50% of their production in the open market, unlocking new avenues for domestic coal availability.

Infrastructure facilitation has been improved via a Single Window Clearance Portal and dedicated Project Management Units to assist coal block allottees.

Commercial coal mining, introduced with liberal norms since 2020, continues to attract private and foreign investment through incentives such as early production rebates, coal gasification rewards, and full FDI via the automatic route.

Technology & Capacity Expansion by Coal Majors

Coal India Limited (CIL) is rapidly adopting modern mining technologies such as Continuous Miners, Longwall and Highwall methods in underground mines, while standardised heavy machinery and digital transformation are being implemented in mega opencast mines.

Singareni Collieries Company Limited (SCCL) is simultaneously working to expedite clearances for new projects while improving coal handling infrastructure across operational sites.

Results on Ground: Imports Down, Savings Up

Due to sustained policy efforts and increased domestic output, coal imports dropped from 264.53 million tonnes in FY 2023-24 to 243.62 million tonnes in FY 2024-25. This 20.91 million tonne reduction led to a substantial foreign exchange saving of approximately ₹60,681 crore.

Looking ahead, the Ministry of Coal has set an ambitious domestic coal production target of 1.5 billion tonnes by FY 2029-30. To support this, the Coal Logistic Plan and Policy 2024 has been launched to upgrade coal evacuation systems across the country.

Also Read: Fueling Progress, Restoring Nature: Centre Boosts Coal Gasification with ₹8,500 Cr Incentive While PSUs Green Mined-Out Lands


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
India’s Space Economy
India’s Space Economy to Reach USD 40–45 Billion in 7–8 Years as Private Investment Rises: Jitendra Singh 
Hemant Soren ₹10 Lakh Medical Aid
Jharkhand CM Hemant Soren Provides ₹10 Lakh Medical Aid to Six-Year-Old for Ear Treatment
PMGSY Bihar rural road connectivity
Bihar Plans Plus Two Education for Madhyama-Pass Students, Orders Inspection of Sanskrit Schools and Madrasas
Delhi-NCR Air Pollution Solutions
Delhi-NCR Air Pollution: Bhupender Yadav Engages Start-ups to Explore Affordable, Technology-Driven Solutions 
Jammu and Kashmir Police (J&K Police)
J&K Police Reshuffle: 6 IPS Officers Get New Postings, 12 DSPs Transferred; Aditi Verma Named SDPO West Srinagar
Bihar Highway Projects 2026–27
Bihar Gets Approval for 2,424 Km Highway Projects Worth ₹1.64 Lakh Crore Under 2026–27 Plan
Maharashtra Drought Relief 2026
Maharashtra Drought: IAS, IPS Officers to Donate One Day’s Salary as 305 Talukas Declared Drought-Affected
AGMUT resized
Delhi IAS Reshuffle: 3 AGMUT Cadre Officers Get New Responsibilities; Nandini Paliwal Named Power Secretary
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
PK Jena
Why Technology Cannot Replace Human Connection in Governance: P.K. Jena
PK Jena
The IAS Officer Who Put People Before Paperwork: How PK Jena Challenged Corruption and Reformed Governance
ADVERTISEMENT
UPSC Stories
Umar Janj UPSC CAPF
15+ Failures Couldn’t Stop Him: Umar Janj Secures AIR 160 in UPSC CAPF 2025
After multiple SSB setbacks, a CAPF interview miss by 12 marks and more than 15 failures, Umar Janj secured...
Aayush Sharma
Three CDS Attempts, Five AFCAT Qualifications & Medical Setback: How Aayush Sharma Secured CAPF AIR 135
After three unsuccessful SSB attempts, five AFCAT qualifications and a medical setback, Aayush Sharma...
Tushar Chaudhary IRMS
He Left Intel, Built COPAL-19, Spent Months at AIIMS, Ran Half Marathons, and Returned to UPSC—Tushar Chaudhary’s Journey to IRMS
UPSC ESE AIR 4 Tushar Chaudhary left a ₹25 LPA Intel job, built COPAL-19, spent months at AIIMS, ran...
CSR NEWS
NBCC India CSR Award 2026
NBCC India Wins Award for Excellence in CSR at 4th Fortune Leadership Awards 2026
The recognition honours NBCC’s community welfare initiatives and efforts to improve healthcare accessibility...
HURL ALIMCO
HURL Signs MoU with ALIMCO to Support Divyangjans and Senior Citizens in Gorakhpur, Barauni and Sindri
Under its CSR initiative, HURL will support PMD-VK Gorakhpur and facilitate the distribution of need-based...
MDL CSR Support to Divyasha Vayoshri Kendra
MDL Extends ₹3.79 Crore CSR Support to Divyasha Vayoshri Kendra in Mumbai
The initiative will strengthen access to assistive devices, prosthetics and rehabilitation services for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
India’s Space Economy
India’s Space Economy to Reach USD 40–45 Billion in 7–8 Years as Private Investment Rises: Jitendra Singh 
Hemant Soren ₹10 Lakh Medical Aid
Jharkhand CM Hemant Soren Provides ₹10 Lakh Medical Aid to Six-Year-Old for Ear Treatment
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr Saket Badola IFS
PK Jena
PK Jena
ADVERTISEMENT
ADVERTISEMENT