New Delhi, May 13, 2025 – In a landmark achievement towards energy self-reliance and sustainable economic growth, India has significantly reduced its dependence on imported coal. According to data released by the Ministry of Coal, total coal imports during the period from April 2024 to February 2025 stood at 220.3 million tonnes (MT) — a 9.2% decrease compared to 242.6 MT during the same period in the previous fiscal year (FY 2023–24).
This decline in imports translated into foreign exchange savings of approximately $6.93 billion (₹53,137.82 crore), reflecting the government’s consistent push to enhance domestic production and reduce dependency on global coal markets.
Notable Sectoral Trends: Power Sector Maintains Output, Reduces Imports
Despite witnessing a 2.87% increase in coal-based power generation during the period, India managed to significantly cut down coal imports for thermal power blending by 38.8%. This underscores a successful substitution of imported coal with domestically sourced alternatives, made possible by improved logistics, enhanced coal evacuation infrastructure, and higher production from Indian coal mines.
The Non-Regulated Sector, which includes industries like steel, cement, and paper manufacturing, showed an even sharper decline in imports—dropping by 15.3% year-on-year. This trend is a direct reflection of increasing availability and competitiveness of domestic coal supplies.
Domestic Production on the Rise: Government Reforms Show Impact
The reduction in imports coincides with an encouraging 5.45% growth in domestic coal output during April 2024 to February 2025 over the same period in the previous fiscal year. This has been made possible by robust policy measures spearheaded by the Government of India, particularly under flagship initiatives like:
-
Commercial Coal Mining: Opening the coal mining sector to private players to boost production and competition.
-
Mission Coking Coal: A targeted programme to enhance the availability of high-quality coking coal for the steel industry.
These initiatives have led to accelerated mine development, greater private sector participation, and improved production efficiency.
Balancing Energy Security and Economic Growth
India’s coal sector remains foundational to its economic growth, supporting key industries and acting as the primary fuel source for the country’s electricity needs. However, challenges persist in meeting domestic demand for coking coal and high-grade thermal coal, which are still not sufficiently available in Indian reserves. Hence, while complete import substitution is not feasible in the immediate term, the ongoing trend points toward a steady reduction in external dependence.
By reducing imports and increasing domestic coal output, the government is making strides towards Viksit Bharat—a vision of a self-reliant and economically empowered India. The Ministry of Coal continues to prioritize energy security by ensuring the reliability of coal supply, modernizing production infrastructure, and promoting sustainable mining practices.
A Roadmap for the Future
The coal import reduction is not just an economic metric—it is a strategic indicator of India’s evolving energy policy. The savings in foreign exchange, reduced exposure to volatile international coal prices, and increased domestic capacity all contribute to a more resilient and self-sufficient energy framework.
As the country pushes forward with clean coal technologies and integrates renewables alongside fossil fuels, coal will continue to serve as a critical bridge in India’s energy transition. The success of initiatives like Commercial Coal Mining and Mission Coking Coal will remain central to this journey.
Conclusion
India’s significant reduction in coal imports by 9.2% during April 2024 to February 2025 marks a decisive step toward energy self-reliance and economic resilience. By boosting domestic production through forward-looking policies like Commercial Coal Mining and Mission Coking Coal, the country not only saved over ₹53,000 crore in foreign exchange but also reinforced its commitment to sustainable growth under the Viksit Bharat vision. As India continues to modernize its coal sector and diversify its energy mix, this achievement underscores a broader transformation—one where domestic strength increasingly replaces external dependence.
Read the full press release from PIB India
For more real time updates, visit Channel 6 Network.
