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India’s Coal Imports for Blending Drop 19.5% as Domestic Production Rises

India reduced coal imports for blending by 19.5% between April and October 2024, driven by a 6.04% increase in domestic production, reflecting significant progress towards self-sufficiency in coal supply.

India’s coal imports for blending by thermal power plants (TPPs) declined by 19.5% year-on-year between April and October 2024, despite a 3.87% rise in coal-based power generation. The Ministry of Coal highlighted that this reduction reflects India’s focused efforts to enhance self-reliance in coal production and reduce import dependency. This decline is noteworthy as India continues to grapple with surging power demand post-COVID-19. With most of the country’s power generated from coal, the government had previously mandated coal imports to meet demand. However, sustained growth in domestic coal production over the past four years has significantly reduced the need for imported coal in blending, with a further 8.5% drop recorded in H1 FY 2024-25.

Meanwhile, imports by power plants designed to exclusively use imported coal rose by 38.4%, reaching 30.04 MT. Additionally, the Non-Regulated Sector (NRS) saw an 8.8% decline in coal imports. Despite India’s efforts, imports remain crucial for coking and high-grade thermal coal, vital for industries like steel. Domestic coal production grew by 6.04%, reaching 537.57 MT, as the government continues strategic initiatives to boost output and strengthen energy security. Overall, coal imports declined by 3.1% to 149.39 MT