Coal imports in April-February fall 9.2% on higher domestic output

India's coal imports declined to 220.3 mt in April-February FY25 amid a rise in domestic output, saving $6.93 billion in forex and reducing dependence on imports

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 Coal imports in the country between April 2024 and February 2025 dropped 9.2 per cent to 220.3 million tonnes (mt) compared to 242.6 mt in the same period last year, according to an official statement.

 

India’s coal import in FY24 stood at 268.24 mt, 7.7 per cent higher than the previous year.

 

The reduction in imports resulted in foreign exchange savings of approximately $6.93 billion (₹53,137.82 crore), the statement noted.

 

Notably, the non-regulated sector — excluding the power sector — experienced a significant year-on-year (YoY) decline of 15.3 per cent.

 

Although coal-based power generation rose 2.87 per cent YoY during April–February of FY25, imports for blending by thermal power plants fell sharply by 38.8 per cent.

 

“This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production,” the statement said.

 

India, despite having the fifth-largest coal reserves globally, faces a notable shortfall in specific types of coal — particularly coking coal and high-grade thermal coal — which are not sufficiently available from domestic sources.

 

India is the world’s second-largest consumer of coal. The coal sector continues to play a critical role in the country’s energy mix, powering over 74 per cent of electricity generation and supporting key industries such as steel and cement.

 

The gap between supply and demand necessitates coal imports to sustain these sectors and meet rising energy needs.

 

To address this, the Ministry of Coal is implementing several initiatives — including commercial coal mining and Mission Coking Coal — to increase domestic coal availability. These efforts aim not only to conserve foreign exchange but also to enhance India’s energy security.

 

These proactive steps have led to a nearly 59 per cent YoY growth in coal output in FY25. For the first time, India produced 1.04 billion tonnes (bt) of coal in a fiscal year, compared to 997.83 mt in FY24.

 

Coal dispatches also crossed the 1 bt mark in FY25, reaching 1.02 bt — up 5.34 per cent from 973.01 mt in FY24.

 

By prioritising domestic coal production, the government aims to progress towards the Viksit Bharat goal and develop a sustainable energy framework that underpins long-term economic growth.