Lesser Coal Imports Save Over Rs 53k Crore In FY25
In FY24 India's coal imports had risen by 7.7 per cent to 268.24 million tonnes
Chennai: India saved $6.93 billion or Rs 53,000 crore in foreign exchange by bringing down coal imports by 9 per cent in 11 months of FY25 as the coal production crossed 1 billion tonnes, while demand of imported coal for blending purposes came down.
Coal imports in the country during April 2024 to February 2025 fell by 9.2 per cent, totalling 220.3 million tonnes (MT), compared to 242.6 MT in the year ago period. This reduction resulted in foreign exchange savings of approximately $6.93 billion or Rs 53137.82 crore.
In FY24 India's coal imports had risen by 7.7 per cent to 268.24 million tonnes.
Although coal-based power generation grew by 2.87 per cent during the period, imports for blending by thermal power plants sharply decreased by 38.8 per cent. The Ministry of Power had brought down the share of imported coal for blending in gencos to 6 per cent till June 2024. Till mid-October 2024, this percentage was further brought down to 4 per cent and thereafter gencos were allowed to opt for blending as per their requirements. This brought down the import of coal for blending.
“Apart from a few gencos run by the large companies, most of the gencos in different states do not need to blend imported coal and are designed to run on indigenous coal. If the coal linkages are provided by Coal India and Railways properly transports coal, gencos can run on domestic coal,” said Shailendra Dubey, chairman, All India Power Engineers' Federation.
However, the non-regulated sector, excluding the power sector, experienced a more significant decline, with imports dropping by 15.3 per cent.
India has been trying to reduce its dependence on imported coal and enhance self-sufficiency in coal production. Coal production rose 5.45 per cent during the period. In FY25, coal production had crossed one billion tonnes for the first time.
Initiatives, including Commercial Coal Mining and Mission Coking Coal, are being implemented to enhance domestic coal production and reduce imports.
Despite the coal reserves, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal.