Coal Imports Decline for Key Sectors, Saving Over ₹13,600 Crore in First Half of FY 2024-25

New Delhi: India’s coal imports by non-regulated sectors (NRS) and domestic coal-based thermal power plants (for blending) saw a significant decline during April to September 2024, reflecting increased reliance on domestic coal. Imports by NRS fell by 9.83%, dropping to 63.28 million tons (MT) from 70.18 MT in the same period last year, while imports for blending in domestic thermal plants decreased by 8.59%, from 10.71 MT to 9.79 MT.

Despite this decline, there was a rise in the import of coking coal, essential for the steel industry, and coal used in imported coal-based (ICB) power plants, as these types of coal cannot be substituted with domestic alternatives.

Overall coal imports for the April-September period saw a marginal increase of 1.36%, reaching 129.52 MT compared to 127.78 MT in the corresponding period last year. However, in terms of value, the total imported coal for the first half of FY 2024-25 dropped to ₹1,38,763.50 crore, a significant reduction from ₹1,52,392.23 crore during the same period last year, resulting in savings of ₹13,628.73 crore.

The Ministry of Coal attributed these savings to a more cost-effective approach and a concerted effort to ramp up domestic coal production and streamline logistics. This aligns with the government’s goal of reducing dependency on imported coal where feasible, while strategically maintaining imports of non-substitutable coal to support critical industries like steel and power.

In a statement, the Ministry reiterated its commitment to ensuring energy security and cost efficiency, a key aspect of the government’s vision for Atmanirbhar Bharat. By prioritizing domestic production and fostering economic efficiency, the Ministry aims to strengthen the nation’s energy infrastructure while advancing towards self-reliance.