Coal Imports Marginally Rose 0.9% in April and July 2024

India is the world’s 2nd -largest user of coal, thanks to its quickly expanding economy. It has the 5th-largest coal reserves. However, the current consumption landscape highlights a significant reliance on imports, especially for coking coal and high-grade thermal coal, which are sufficiently available domestically. This dependency is crucial for supporting key industries, notably steel production.

Between April and July 2024, coal imports saw a slight increase of 0.9%, reaching 90.51 million tonnes (MT) compared to 89.68 MT during the same period last year. Notably, non-coking coal imports rose by 2%, while coking coal imports fell by 2.6%. In July 2024 alone, coal imports surged by 15.9%, totalling 21.81 MT compared to 18.82 MT in July 2023.

Despite a robust 10.18% increase in coal-based power generation during the same timeframe, imports for blending purposes decreased by 8.2%. This decline underscores India’s commitment to achieving self-sufficiency in coal production and reducing reliance on imports. The rise in coal imports for the power sector can be attributed to significant increases by coal-fired plants specifically designed to utilise imported coal, which imported 17.69 MT during this period, up from 10.12 MT the previous year. Conversely, imports from the non-regulated sector saw a notable decline of 11%, dropping from 50.53 MT to 44.97 MT.

Additionally, coal production during the April-July 2024 period rose impressively, reaching 321.40 MT compared to 293.35 MT the previous year, reflecting a 9.56% growth. This trend aligns with the government’s ongoing initiatives to streamline coal usage and bolster domestic production.

The Ministry of Coal is actively implementing strategic measures to enhance coal production and availability, aiming to safeguard foreign reserves while strengthening national energy security. These proactive steps are designed to reduce import dependence and contribute to a sustainable energy landscape in India. 

In conclusion, while challenges persist in the realm of coal imports, the Indian government’s strategic focus on increasing domestic coal production signals a positive outlook for the country’s energy future. The commitment to self-sufficiency in coal production is essential for maintaining economic growth and ensuring energy security in the years ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.