Coal imports see marginal increase amid coal-based power generation surge: Centre

New Delhi, Sep 25: Coal imports saw a marginal increase of 0.9 per cent, reaching 90.51 million tonnes (MT) in the April-July period of FY25, compared to 89.68 MT in the previous year to meet the current consumption landscape, the Centre said on Wednesday.

Despite a growth of 10.18 per cent in coal-based power generation from April to July 2024 compared to the same period last year, imports for blending purposes decreased by 8.2 per cent during the same period.

“This decline underscores India’s steadfast commitment to achieving self-sufficiency in coal production and reducing reliance on imports,” according to Ministry of Coal.

Non-coking coal imports increased by 2 per cent during this period, while coking coal imports dropped by 2.6 per cent. In July alone, coal imports rose by 15.9 per cent, reaching 21.81 MT compared to 18.82 MT in July 2023.

With the fifth-largest coal reserves in the world, the country stands as the second-largest consumer of coal, driven by a rapidly growing economy.

The ministry said that the current consumption landscape reveals a critical need for imports, particularly for coking coal and high-grade thermal coal, which are not sufficiently available within domestic reserves.

“This shortfall necessitates imports to support key industries, including steel,” it added.

Meanwhile, increase in coal import for power sector is attributed to the substantial quantity of coal import by imported coal-based power plants (designed to utilise imported coal only) -- 17.69 MT during this period, up from 10.12 MT in the corresponding timeframe last year.

Additionally, coal imports by the non-regulated sector saw a significant decline of 11 per cent, falling from 50.53 MT to 44.97 MT during the same time frame, said the ministry.