Coal imports during Apr-Dec 2024 dip by 8.4%

Coal imports in the first three quarters of the current fiscal fell by 8.4 per cent, totaling 183.42 million tonnes (MT), as compared to 200.19 MT in the same period of the previous fiscal. This reduction resulted in foreign exchange savings of approximately $5.43 billion Rs 42,315.7 crore), an official press release has said.

Notably, the non-regulated sector excluding the power sector, experienced a more significant decline, with imports dropping by 12.01 per cent year-on-year. Even as coal-based power generation grew by 3.53 per cent from April to December 2024 compared to the previous fiscal, imports for blending by thermal power plants sharply decreased by 29.8 per cent. This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production, the release said.

The government has implemented several initiatives, including commercial coal mining and Mission Coking Coal, to enhance domestic coal production and reduce imports. These efforts have also led to an encouraging 6.11 per cent growth in coal output during the April-December 2024 period compared to the same period of 2023-24.

India’s coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a primary energy source for critical industries like power generation, steel production, cement manufacturing, etc. However, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply within its reserves. As a result, coal imports have been vital to meet the needs of key sectors, including steel production.

The Ministry of Coal has been implementing strategic measures to strengthen domestic production and ensure a secure coal supply, aligning with India's goals of reducing coal imports and enhancing energy security. By prioritizing domestic coal output, the government aims to march ahead towards the Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth, the release said.