coal-imports-in-april-february-fall-9-2-save-6-93-bn-in-forex

Between April 2024 and February 2025, coal imports in the country dropped 9.2 per cent to 220.3 million tonnes (mt) compared to 242.6 mt in the same period last year, according to an official statement.

In the financial year 2024, India’s coal import stood at 268.24 mt, which was 7.7 per cent higher than the previous year. A reduction in imports since then has resulted in foreign exchange savings of approximately $6.93 billion (₹53,137.82 crore), the statement noted.

Although coal-based power generation rose 2.87 per cent YoY during April–February of FY25, imports for blending by thermal power plants fell sharply by 38.8 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.
Despite having the fifth-largest coal reserves globally, India faces a notable shortfall in specific types of coal — particularly coking coal and high-grade thermal coal — which are not sufficiently available from domestic sources.

Being the world’s second-largest consumer of coal means that there is often a gap between supply and demand for India which is filled by importing coal, especially to sustain key industries such as steel and cement, as well as meeting the country’s rising energy needs. The coal sector plays a critical role in the country’s energy mix, powering over 74 per cent of electricity generation. 

To address this, the Ministry of Coal is implementing several initiatives — including commercial coal mining and Mission Coking Coal — to increase domestic coal availability. These efforts aim not only to conserve foreign exchange but also to enhance India’s energy security.

These proactive steps have led to a nearly 59 per cent YoY growth in coal output in FY25. For the first time, India produced 1.04 billion tonnes (bt) of coal in a fiscal year, compared to 997.83 mt in FY24.

Notably, the non-regulated sector — excluding the power sector — experienced a significant year-on-year (YoY) decline of 15.3 per cent.
Coal dispatches also crossed the 1 bt mark in FY25, reaching 1.02 bt — up 5.34 per cent from 973.01 mt in FY24.