India Cuts Coal Imports by 7.9%, Boosting Domestic Production

India's coal imports have witnessed a notable decline of 7.9% in the fiscal year 2024-25, amounting to 243.62 million tonnes, as opposed to 264.53 million tonnes in the previous year, according to the Ministry of Coal. This strategic reduction translated into foreign exchange savings of approximately USD 7.93 billion.

Significantly, the Non-Regulated Sector, excluding the power sector, saw an even steeper decline in coal imports, dropping by 8.95% year-on-year. Despite a 3.04% increase in coal-based power generation during this period, imports for thermal power plant blending fell sharply by 41.4%, highlighting India's push towards domestic coal production to reduce import dependency.

The Government of India is committed to enhancing domestic coal output, as evidenced by a 5% growth in production between 2024-25. However, challenges persist in meeting the demand for coking and high-grade thermal coal, which remain scarce in local reserves, necessitating continued imports. In response, the Ministry of Coal has been proactive in implementing strategies to bolster domestic production and ensure a stable supply, aligning with the nation's energy security goals and vision of a self-sufficient economy.

(With inputs from agencies.)