India’s coal imports saw a significant decline of 8.4% in the April-December 2024 period, totaling 183.42 million tonnes (MT) compared to 200.19 MT in the same period of the previous fiscal year, according to data released by the Ministry of Coal. This decline resulted in substantial foreign exchange savings of approximately $5.43 billion (₹42,315.7 crore).
The reduction in coal imports was particularly notable in the Non-Regulated Sector (excluding power), which witnessed a sharp 12.01% drop year-on-year. While coal-based power generation grew by 3.53% during this period, imports for blending by thermal power plants declined sharply by 29.8%. This highlights India’s ongoing efforts to reduce reliance on imported coal and strengthen domestic coal production.
Government Initiatives Drive Domestic Coal Growth
The Indian government has introduced several initiatives, including Commercial Coal Mining and Mission Coking Coal, to enhance local coal production and cut down imports. These measures have contributed to a 6.11% increase in domestic coal output during April-December 2024 compared to the same period in FY 2023-24.
Coal remains a critical energy source for India’s rapidly growing economy, supporting industries like power generation, steel production, and cement manufacturing. However, challenges persist in meeting domestic coal demand, particularly for coking coal and high-grade thermal coal, which are scarce in India’s reserves.
To tackle this, the Ministry of Coal continues to focus on strengthening domestic production to ensure a secure coal supply. These efforts align with India’s broader vision of reducing coal imports and improving energy self-sufficiency as the country progresses toward its Viksit Bharat goals for a self-reliant and sustainable energy framework.
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