India’s Coal Imports Drop 8.4% in April-December 2024 Amid Rising Domestic Output

India’s coal imports fell by 8.4% to 183.42 million tonnes (MT) during the April-December 2024 period, as increased domestic production helped meet rising demand.

This reduction in imports resulted in foreign exchange savings of approximately ₹42,315 crore ($5.43 billion), according to a statement from the Ministry of Coal.

In comparison, coal imports stood at 200.19 MT during the same period in the previous financial year, highlighting a notable decrease in reliance on imported coal.

Steepest Decline in Non-Power Sectors

The decline in coal imports was more pronounced in non-power sectors, which include industries such as cement, sponge iron, and steel. The non-regulated sector saw a sharper year-on-year drop of 12.01%.

Meanwhile, coal-based electricity generation grew by 3.53% during April-December 2024 compared to the same period last year.

However, imports for blending purposes in thermal power plants saw a steep decline of nearly 30%, indicating greater reliance on domestically mined coal for power generation.

Government Policies Drive Import Reduction

The Ministry of Coal attributed the decline in imports to policy measures focused on ramping up local coal production. Key initiatives that contributed to this trend include:

• Commercial coal mining:

Expanding private participation in coal mining to increase supply.

• Coal block auctions: 

Allocating more blocks to companies for production.

• Mission Coking Coal: 

A government initiative aimed at reducing India’s dependence on imported coking coal. These efforts have led to a significant boost in domestic coal production.

Increase in Domestic Coal Production

As a result of these policy interventions, India’s total coal output rose by 6.11% during April-December 2024, compared to the same period in the previous fiscal year. The steady increase in local production is expected to further reduce coal imports in the coming months, enhancing energy security and reducing dependency on foreign coal.

Conclusion 

India’s coal import decline reflects the success of government policies aimed at boosting domestic production. With increased output and reduced reliance on foreign coal, the country enhances energy security while saving significant foreign exchange. Continued policy support and local mining expansion are expected to drive further reductions in coal imports.

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