Record domestic production cuts India's coal import by 8% in FY25, saving $7.93 billion in forex

.

India’s coal import during the financial year 2024-25 fell by 8 percent to 243.62 million tonnes (MT), offset to a ramp up in domestic production which for the first time crossed the 1 billion tonne (BT) mark.

The lower import resulted in foreign exchange savings of approximately $7.93 billion or Rs 60,681.67 crore for the fiscal. The non-regulated sector, or coal supplied to industries and not the power sector, experienced a more significant decline with imports dropping by 9 percent on year. While coal-based power generation grew by 3 percent in FY25 compared to a year ago, imports for blending by thermal power plants sharply decreased by 41 percent.

This trend also highlights India’s ongoing efforts to reduce dependence on imported coal and enhance self-sufficiency in coal production.

Also Read: Resonia bets on power transmission, to invest Rs 1 lakh crore by FY32

"The government of India 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 an encouraging 5 percent growth in coal output during FY 2024-25 compared to FY 2023-24," a government statement said on May 27.

India's coal sector has a pivotal role in supporting its rapidly growing economy where coal is a primary energy source for critical industries like power, steel, cement etc. India faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply in domestic reserves. As a result, coal imports have been vital to meet the needs of key sectors including steel.

Also Read: Coal Ministry surpasses asset monetisation target by Rs 63,000 crore

The Ministry of Coal has been implementing strategic measures to strengthen domestic production and ensure a secure coal supply. "By prioritizing domestic coal output, the government aims to march ahead towards Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth," the Coal Ministry said.