Record domestic coal output helps India save nearly $8 bn in imports

Capex crosses target by 44%

India saved nearly $8 billion in foreign exchange in FY25 as coal imports declined sharply on the back of strong domestic production and high stock levels at power plants, according to the coal ministry’s year-end review. The easing of supply pressure was supported by record coal production, which rose to 1,047.5 million tonnes in FY25, a 4.98 per cent increase over the previous year.

 

Imported coal blending at thermal stations dropped steeply, falling from 12 million tonnes last year to 5.5 million tonnes in the April–December period. Overall coal imports were down 7.9 per cent in FY25, translating into estimated savings of $7.93 billion (Rs 60,682 crore), the coal ministry said.

 

The ministry said power plants were consistently well supplied through the year, ending December with 50.3 million tonnes of coal, one of the highest closing stock levels in recent years.

 

The combined capital expenditure by state-owned Coal India, Neyveli Lignite Corporation (NLCIL) and Singareni Collieries (SCCL) stood at Rs 31,662 crore in 2024-25, overshooting the annual target of Rs 20,049 crore by 44 per cent. Coal India Ltd drove much of this spending, deploying Rs 21,776 crore on land acquisition, evacuation infrastructure and coal-handling projects across subsidiaries.

 

NLC India Ltd (NLCIL) and Singareni Collieries Company Ltd (SCCL) also exceeded their MoU-linked capex commitments for the year. The ministry also reiterated its targets across major schemes and projected India’s coal demand to rise to around 1.5 billion tonnes by 2030, which will require both productivity improvements and evacuation capacity expansion.

 

The First Mile Connectivity programme, which aims to mechanise and modernise coal loading, is expected to scale up to 1,319 million tonnes per year (MTY) of capacity by 2030, compared with around 552 MTY already commissioned.

 

In metallurgical coal, the ministry has set a target to increase domestic raw coking coal output to 140 million tonnes by 2030, up from the current 59.6 million tonnes, supported by new washeries and quality enhancement measures.

 

The ministry also shared the renewable energy plans of its PSUs, noting that Coal India, NLCIL and SCCL together aim to install 22.5 GW of solar capacity by 2030, building on the 2 GW already commissioned. Strong domestic availability, higher stocking norms and continued investment momentum are expected to help India meet rising coal demand while keeping import dependence in check, it said.