India’s Coal Imports Witness Marginal Rise Amid Increased Domestic Production: A Path Towards Self-Sufficiency

New Delhi: India, boasting the fifth-largest coal reserves globally and standing as the second-largest consumer of coal, is facing a complex challenge in managing its energy needs. Despite significant domestic reserves, the country continues to rely on imports, particularly for coking coal and high-grade thermal coal, both essential for key industries such as steel. However, recent trends suggest a shift towards self-reliance as domestic coal production experiences a steady rise.

During the April-July period of FY 2024-25, coal imports saw a marginal increase of 0.9%, reaching 90.51 million tonnes (MT) compared to 89.68 MT in the same period last year. While non-coking coal imports rose by 2%, coking coal imports declined by 2.6%, reflecting the nation’s growing focus on reducing external dependency. In July 2024 alone, coal imports increased by 15.9%, totaling 21.81 MT compared to 18.82 MT in July 2023.

Amid the fluctuating import scenario, India’s domestic coal production is gaining significant traction. From April to July 2024, coal production surged to 321.40 MT, a 9.56% increase compared to 293.35 MT in the same period of FY 2023-24. This marked growth demonstrates the government’s commitment to boosting domestic coal output and minimizing the need for imports.

India’s coal-based power generation also witnessed a notable 10.18% growth during this period, underscoring the critical role coal continues to play in powering the nation. However, coal imports for blending purposes declined by 8.2%, highlighting the government’s concerted efforts to achieve energy self-sufficiency and reduce import reliance.

Despite overall growth in coal imports, the non-regulated sector saw a significant drop, with imports falling by 11%, from 50.53 MT to 44.97 MT. However, the power sector, particularly imported coal-based power plants that rely exclusively on imported coal, saw a sharp rise in imports. From April to July 2024, these plants imported 17.69 MT, up from 10.12 MT in the corresponding period last year.

The Ministry of Coal continues to implement strategic initiatives aimed at bolstering domestic coal production, reducing import reliance, and safeguarding the nation’s foreign reserves. These efforts are key to enhancing India’s energy security and ensuring a stable coal supply for industries critical to the nation’s economic growth.

The government’s proactive measures, including streamlining coal mining operations and facilitating investment in the sector, are pivotal to reducing dependence on imports, particularly for the power and steel industries. The focus remains on increasing production efficiency, improving coal availability, and supporting India’s long-term energy goals.