India's Coal Strategy Pays Dividends with Reduced Imports

India's coal imports dipped by 3.1% in the first seven months of FY 2024-25, underscoring efforts to boost domestic production. Despite the import decline, power generation increased as the country remains committed to reducing external reliance. These developments highlight government initiatives aimed at enhancing energy self-sufficiency.

India's strategy to decrease reliance on coal imports has borne fruit, as the country recorded a 3.1% dip in coal imports during the first seven months of FY 2024-25, according to data from the Ministry of Coal. This marks a significant milestone towards energy security and reducing external dependencies.

The decline comes despite a 3.87% rise in coal-based power generation during the same period, driven by growing demand for energy. Notably, the imports used for blending by thermal power plants fell sharply by 19.5%, reflecting India's successful push for greater self-sufficiency in coal production.

However, imports for imported coal-based power plants surged by 38.4%, indicating these plants' heavy reliance on foreign coal. Meanwhile, imports for non-regulated sectors dropped by 8.8%, showing effective diversification in coal supply. The country's coal production grew by 6.04%, aligning with government efforts to meet the energy needs domestically.

(With inputs from agencies.)