India’s Coal Imports Decline by 7.9% in FY 2024-25

In a significant stride towards energy self-reliance, India witnessed a 7.9% reduction in coal imports during FY 2024-25, bringing the total down to 243.62 million tonnes (MT) from 264.53 MT in the previous fiscal year. This decrease resulted in substantial foreign exchange savings of nearly $7.93 billion (₹60681.67 crore), indicating progress in the government’s push for domestic coal production.

Why in News?

The Ministry of Coal recently reported a year-on-year decline in India’s coal imports, reflecting the success of several strategic initiatives aimed at reducing dependency on imported coal. The drop in imports aligns with India’s broader vision of achieving energy security and self-reliance under the “Viksit Bharat” goal.

Key Developments

• Import Reduction: Coal imports fell to 243.62 MT in FY 2024-25 — a 7.9% decrease compared to FY 2023-24.

Sectoral Impact

• Non-Regulated Sector (NRS): Witnessed an 8.95% fall in coal imports.
• Power Sector Blending: Imports for blending purposes fell by 41.4%.
• Power Generation: Despite the drop in imports, coal-based power generation increased by 3.04%.
• Foreign Exchange Savings: Estimated at $7.93 billion (₹60681.67 crore).

Government Initiatives to Boost Domestic Production

• Commercial Coal Mining: Opened the coal sector to private players to enhance competition and output.
• Mission Coking Coal: Focused on reducing imports of high-quality coal used in the steel industry.
• Overall Production Growth: Domestic coal output rose by 5% in FY 2024-25.

Static & Background Info

• Coal Usage: India depends heavily on coal for power generation, steel, cement, and other industries.
• Coking Coal: Mainly imported due to limited reserves in India.
• Thermal Coal: Domestic production is now increasingly meeting demand for thermal plants.

Significance

• Reduces import dependency.
• Enhances energy security.
• Supports the “Atmanirbhar Bharat” (Self-reliant India) vision.
• Contributes to the Viksit Bharat (Developed India) mission for 2047.
• Indicates successful policy implementation and sectoral resilience.