From April 2024 to February 2025, India achieved a significant 9.2% reduction in coal imports, totaling 220.3 million tonnes (MT) compared to 242.6 MT in the same period of the previous fiscal year. This decline saved approximately $6.93 billion (₹53,137.82 crore) in foreign exchange, marking a crucial step toward energy self-reliance and economic stability.
Decline in Coal Imports
Non-Regulated Sector Performance
The Non-Regulated Sector, excluding the power sector, saw a remarkable 15.3% year-on-year decline in coal imports. This reflects India’s efforts to optimize domestic resources and reduce reliance on foreign coal for industries such as steel and cement.
Power Sector Trends
Despite a 2.87% increase in coal-based power generation from April 2024 to February 2025, imports for blending in thermal power plants dropped significantly by 38.8%. This highlights the effectiveness of strategies to utilize domestic coal for power generation, reducing the need for imported coal.
Government Initiatives for Domestic Production
Commercial Coal Mining
The Government of India has introduced the Commercial Coal Mining initiative to boost domestic coal production. This program encourages private sector participation in coal mining, enhancing efficiency and output to meet the country’s growing energy demands.
Mission Coking Coal
Through Mission Coking Coal, the government aims to increase the production of coking coal, a critical resource for the steel industry. This initiative addresses the shortage of high-quality coking coal within India, reducing import dependency for key industrial sectors.
Boost in Domestic Coal Output
These initiatives have led to a 5.45% growth in domestic coal production during April 2024 to February 2025 compared to the same period in the previous fiscal year. This growth strengthens India’s energy security and supports its rapidly expanding economy.
Coal’s Role in India’s Economy
Coal remains a primary energy source for critical industries like power, steel, and cement, playing a pivotal role in supporting India’s economic growth. However, the limited availability of coking coal and high-grade thermal coal within the country necessitates strategic measures to balance domestic production with imports.
Aligning with Viksit Bharat
The Ministry of Coal’s efforts align with India’s vision of Viksit Bharat, focusing on building a self-reliant and sustainable energy framework. By prioritizing domestic production and reducing import dependency, the government aims to ensure a stable coal supply to fuel long-term economic growth.
Key Takeaways from Coal Sector Developments
- Reduced Imports: A 9.2% decline in coal imports saved $6.93 billion from April 2024 to February 2025.
- Domestic Production Growth: A 5.45% increase in coal output supports energy security.
- Commercial Coal Mining: Encourages private sector involvement to enhance coal production.
- Mission Coking Coal: Focuses on increasing domestic coking coal supply for industries like steel.
- Energy Security: Strategic measures to reduce reliance on imported coal for a self-reliant economy.
Conclusion
India’s coal sector is making significant strides toward self-sufficiency, as evidenced by the 9.2% reduction in coal imports from April 2024 to February 2025. Through initiatives like Commercial Coal Mining and Mission Coking Coal, the government is enhancing domestic production and aligning with the vision of a self-reliant, sustainable energy framework. These efforts ensure a stable coal supply to support India’s growing economy and its journey toward Viksit Bharat.
Important Facts About India’s Coal Sector
- Coal Imports: Coal brought from other countries to meet domestic demand, particularly for coking coal and high-grade thermal coal.
- Coking Coal: A type of coal used in steel production, often imported due to limited domestic availability.
- Thermal Coal: Coal used primarily for power generation in thermal power plants.
- Commercial Coal Mining: A government initiative to allow private companies to mine and sell coal, boosting domestic production.
- Viksit Bharat: India’s vision for comprehensive development by 2047, emphasizing self-reliance and sustainability.