Decline of 7.9% in coal imports in FY25 results in foreign exchange savings of Rs 60,682 cr

Decline of 7.9% in coal imports in FY25 results in foreign exchange savings of Rs 60,682 cr

The country's coal import has dropped by 7.9 per cent to 243.62 million tonnes (MT) in FY25 and has resulted in foreign exchange savings of around USD 7.93 billion.

The country's coal import stood at 264.53 MT in FY24, the coal ministry said in a statement.

The reduction in coal import has resulted in foreign exchange savings of approximately USD 7.93 billion (Rs 60,681.67 crore), it added.

Although coal-based power generation grew by 3.04 per cent from 2024-25 compared to the previous fiscal year, imports for blending by thermal power plants sharply decreased by 41.4 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.

The centre has implemented several initiatives, including commercial coal mining and mission coking coal, to enhance domestic coal production and reduce imports.

These efforts have also led to five per cent growth in coal output during 2024-25 over 2023-24.

The non-regulated sector, excluding the power sector, experienced a more significant decline, with imports dropping by 8.95 per cent year-on-year.

India's coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a primary energy source for critical industries like power, steel, cement etc.

However, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply within the country's reserves. As a result, coal imports have been vital to meet the needs of key sectors including steel, the statement said.