India, which holds the fifth-largest coal reserves globally, ranks as the second-largest coal consumer, fueled by a rapidly expanding economy. However, the current consumption scenario highlights a pressing need for imports, especially for coking coal and high-grade thermal coal, which are insufficiently available from domestic reserves. This gap necessitates imports to support essential industries, particularly steel manufacturing.

During the April-July period of FY 2024-25, coal imports saw a slight increase of 0.9%, reaching 90.51 million tonnes (MT), up from 89.68 MT the previous year. Notably, non-coking coal imports rose by 2% during this timeframe, whereas coking coal imports fell by 2.6%. In July 2024 alone, coal imports surged by 15.9%, hitting 21.81 MT compared to 18.82 MT in July 2023.

Despite a robust growth of 10.18% in coal-based power generation from April 2024 to July 2024 compared to the same period last year, imports for blending purposes decreased by 8.2%. This decline illustrates India’s commitment to achieving self-sufficiency in coal production and lessening dependence on imports. The increase in coal imports for the power sector is attributed to a substantial rise in coal import by imported coal-based power plants, which are designed to use only imported coal, reaching 17.69 MT during this period, up from 10.12 MT in the same timeframe last year. Additionally, coal imports by the non-regulated sector saw a marked decline of 11%, dropping from 50.53 MT to 44.97 MT during the same period.

Coal production from April to July 2024 showed impressive growth, reaching 321.40 MT compared to 293.35 MT in the same period of FY 2023-24, marking an increase of 9.56%.

The Ministry of Coal is actively implementing strategic initiatives aimed at enhancing coal production and availability. These efforts focus not only on preserving foreign reserves but also on improving the nation’s energy security.