In a significant step toward energy self-reliance, India reduced its coal imports by 9.2% during the April 2024 to February 2025 period, cutting foreign coal purchases to 220.3 million tonnes (MT) from 242.6 MT in the same period the previous fiscal year. The decline resulted in foreign exchange savings of approximately USD 6.93 billion (₹53,137.82 crore), the Ministry of Coal announced.
The most notable drop occurred in the Non-Regulated Sector, where imports declined by 15.3% year-on-year, reflecting the impact of strategic efforts to reduce dependence on foreign coal.
Interestingly, the reduction came even as coal-based power generation increased by 2.87% during the same period. Imports for blending by thermal power plants saw a sharp fall of nearly 39%, highlighting the success of domestic sourcing initiatives and efficient resource utilization.
To drive this shift, the government launched several key initiatives such as Commercial Coal Mining and Mission Coking Coal, aimed at ramping up domestic production. These measures contributed to a 5.45% growth in coal output during the period, compared to the previous fiscal year.
Coal remains a cornerstone of India’s energy ecosystem, powering essential sectors like electricity, steel, and cement. However, the country continues to grapple with shortfalls in high-grade thermal coal and coking coal—both crucial for steel manufacturing—which have traditionally necessitated substantial imports.
In response, the Ministry of Coal has been strengthening efforts to boost indigenous coal production and secure a reliable domestic supply. These moves are aligned with the broader national objective of Viksit Bharat (Developed India)—building a self-reliant and sustainable energy framework to support long-term economic growth.
“The savings and import reductions underline our progress toward energy security and economic resilience,” the Ministry noted, emphasizing its commitment to reducing import dependence while fueling industrial development with homegrown resources.
