India Records 9.2% Drop in Coal Imports During April 2024–February 2025

In a significant development toward India’s energy self-reliance, coal imports during the period from April 2024 to February 2025 registered a 9.2% decline compared to the same period of the previous fiscal year. Total imports fell to 220.3 million tonnes (MT) from 242.6 MT, resulting in substantial foreign exchange savings. The drop reflects India’s strategic emphasis on increasing domestic coal production, particularly under initiatives like Commercial Coal Mining and Mission Coking Coal.

Why in News?

The Ministry of Coal reported that coal imports decreased by 9.2% in the April–February period of FY 2024–25, leading to foreign exchange savings of $6.93 billion. The reduction is significant as it indicates progress in India’s mission to reduce import dependency and enhance energy security through domestic coal production initiatives.

Coal Import Reduction

• 220.3 MT in Apr 2024–Feb 2025 vs 242.6 MT in same period of FY 2023–24.
• Drop of 9.2% year-on-year.
• Forex saved: $6.93 billion (₹53,137.82 crore).

Sector-wise Trends

• Non-Regulated Sector imports fell by 15.3%.
• Blending coal imports for thermal power dropped by 38.8%.
• Coal-based power generation grew by 2.87%.

Production Boost

• Domestic coal production grew by 5.45% in Apr 2024–Feb 2025 over previous year.

Initiatives Behind the Decline

Commercial Coal Mining

• Opened the sector to private players.
• Enhanced competitiveness and output.

Mission Coking Coal

• Targeted to reduce imports of metallurgical coal used in steel industries.

Strategic Planning by Ministry of Coal

• Boosting infrastructure, mine capacity, and logistics.

Background & Significance

• India is the second-largest producer and consumer of coal globally.
• Coal meets ~55% of India’s energy needs.

Historically, India imports high-grade thermal and coking coal, mainly due to,

• Shortage of such grades domestically.
• Demand from sectors like steel, cement, and power.
• Reducing coal imports aligns with the “Atmanirbhar Bharat” and “Viksit Bharat 2047” visions.