Coal Imports Reduced 3.1% During Apr-Oct 2024: Domestic Coal Production Rose To 537.57 MT

India faces a significant shortfall in certain types of coal, particularly coking coal and high-grade thermal coal in spite of owning the 5-largest coal reserves globally. These specific coal types are not sufficiently available from domestic sources, creating a gap in supply.

Decline in Coal Imports (FY 2024-25)

During the April-October period of FY 2024-25, coal imports recorded a notable drop of 3.1%, totalling 149.39 million tonnes (MT) against 154.17 MT in the same period the previous year. This decline primarily underscores the shifting dynamics in India’s coal import dependency. Specifically, the Non-Regulated Sector (excluding power) experienced a more significant drop, with imports declining by 8.8% during the same period.

Coal-Based Power Generation and Imports for Blending

While coal-based power generation grew by 3.87% from April to October 2024 compared to the previous year, there was a substantial decrease of 19.5% in coal imports for blending purposes by thermal power plants. This decrease reflects India’s focus on achieving self-sufficiency in coal production and reducing its reliance on coal imports. However, there was an increase in coal imports by power plants that are specifically designed to use imported coal. These plants imported 30.04 MT of coal during this period, marking a significant 38.4% increase from the previous year.

Rising Domestic Coal Production

India’s domestic coal production showed remarkable growth during the April-October 2024 period, reaching 537.57 MT, compared to 506.93 MT during the same period in FY 2023-24. This increase of 6.04% in production is a positive indicator of the government’s efforts to enhance domestic coal output and streamline coal usage. The growth reflects the ongoing commitment to improving energy security and reducing dependence on imports.

Government Initiatives and Strategic Plans

The Ministry of Coal has been actively implementing strategic initiatives to boost coal production and improve its availability across the country. These efforts are designed to safeguard foreign reserves, enhance energy security, and reduce India’s reliance on imported coal.

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.