India Slashes Coal Imports by 9.2% in Apr–Feb FY25, Saves ₹53,138 Cr in Forex

India Cuts Coal Imports by 9.2% in April–February FY25, Saving Over ₹53,000 Crore in Forex

India’s coal imports witnessed a significant decline in the April–February period of the financial year 2024–25, falling by 9.2% to 220.3 million tonnes (MT) compared to 242.6 MT imported in the same period of the previous year. This reduction translated into a substantial foreign exchange saving of approximately ₹53,137.82 crore, according to an official statement released by the Ministry of Coal on Tuesday. The data underscores the country’s success in strengthening domestic coal production while systematically cutting down reliance on costly imports.

Highlights:

• Coal imports down 9.2% YoY to 220.3 MT in April–Feb FY25

• Forex savings of ₹53,137.82 crore achieved due to lower imports

• Comparative imports stood at 242.6 MT in the same period last year

Non-Regulated Sector Sees Sharper Import Decline of 15.3%

The reduction in coal imports was more pronounced in the non-regulated sector—which includes industries outside the purview of electricity generation—where imports declined by 15.3% on a year-on-year basis. This significant contraction highlights a marked shift in sourcing strategies among industries such as cement, steel, and chemicals, which traditionally relied on imported coal. The move toward domestic procurement in these sectors reflects both policy influence and improved local supply dynamics.

Highlights:

• Non-regulated sector coal imports down 15.3% YoY

• Includes industries like cement, steel, and chemicals

• Domestic procurement preferred over costly imports

Thermal Power Plants Cut Imported Coal for Blending by 38.8%

Despite coal-based power generation rising 2.87% year-on-year in the April–February FY25 period, imports for blending by thermal power plants dropped sharply by 38.8%, the Ministry of Coal noted. This contrast indicates a decisive reduction in blending requirements due to higher availability of domestic coal. It also suggests improved coal quality and logistics support from Indian suppliers, enabling thermal power stations to run efficiently without depending on imported blends.

Highlights:

• Power generation via coal up 2.87% YoY

• Imports for blending by thermal plants declined 38.8%

• Domestic coal availability improving power plant efficiency

Domestic Coal Output Rises 5.45%, Reinforcing Import Substitution Goals

India’s domestic coal production increased by 5.45% during the April–February period of FY25 compared to the same stretch last year, driven by reforms and production acceleration at both Coal India Limited (CIL) and private commercial miners. The growth in output reflects the success of initiatives such as commercial coal mining, revised mining policies, and infrastructure investments aimed at unlocking higher production capacity. This rise in domestic availability has been pivotal in facilitating the import reduction without compromising on industrial demand.

Highlights:

• Domestic coal production up 5.45% YoY

• Production growth backed by policy reforms and new mining operations

• Higher output directly contributes to import reduction strategy

Government’s Policy Push Strengthens Coal Self-Reliance Strategy

The Ministry of Coal attributed these gains to the Centre’s ongoing push for self-reliance in the coal sector. Key initiatives include the opening of commercial coal mining to private players, auctioning of new coal blocks, and expansion of logistics and evacuation infrastructure. These efforts are expected to continue enhancing domestic supply and reduce the economic burden of imports, especially in light of India’s long-term energy security goals.

Highlights:

• Policy measures like commercial mining boosting domestic output

• Government infrastructure and logistics support playing a key role

• Long-term goal: reduce import dependence and enhance energy security