New Delhi: India’s coal sector plays a critical role in supporting its rapidly growing economy. However, the country faces a significant gap in meeting its coal demand from domestic reserves, particularly for coking coal and high-grade thermal coal, which are not adequately available. As a result, coal imports are essential to support critical industries such as steel production.
The government’s initiatives to reduce coal imports have shown positive results in the first seven months of FY 2024-25 (April-October). Coal imports decreased by 3.1%, totaling 149.39 million tonnes (MT) compared to 154.17 MT during the same period in the previous year. The Non-Regulated Sector (excluding power sector) saw a more substantial decline, with imports dropping by 8.8% year-on-year.
Despite growth of 3.87% in coal-based power generation from April 2024 to October 2024 compared to the same period last year, coal imports for blending by thermal power plants saw a sharp decrease of 19.5%. This decline is a testament to India’s determined efforts to achieve greater self-sufficiency in coal production and reduce dependence on imports. The increase in coal imports for the power sector, particularly from imported coal-based power plants (designed to use only imported coal), was notable, rising by 38.4% to 30.04 MT, up from 21.71 MT in the previous year.
On the production side, coal output saw a positive growth of 6.04%, rising to 537.57 MT in the April-October 2024 period, up from 506.93 MT in the same period of FY 2023-24. This growth highlights the government’s concerted efforts to enhance coal production and optimize its usage within the country.
The Ministry of Coal continues to implement a range of strategic measures to boost domestic production and ensure a stable coal supply. These efforts aim not only to reduce India’s dependence on coal imports but also to fortify the country’s energy security. By focusing on increasing domestic output, the government is working towards a more self-sufficient and sustainable energy landscape for India.
