India has witnessed a decline in coal imports for the period from April to October 2024, with a drop of 3.1% compared to the same period in the previous year. The total imports stood at 149.39 million tonnes (MT) during these seven months, as against 154.17 MT in 2023.
This reduction is largely attributed to the rise in domestic coal production, a factor that plays a crucial role in India’s coal consumption and energy landscape.
A more significant decrease in imports was observed in the non-regulated sector, which excludes the power sector. The decline in this segment reached 8.8% year-on-year, reflecting a shift in the country’s approach to coal procurement.
India’s ability to ramp up its coal production, particularly for use in various industries, is gradually reducing the reliance on foreign supplies.
India’s coal reserves are the fifth-largest in the world, and domestic production continues to be a vital part of the country’s growing economy.
However, despite the increase in production, there remains a gap in meeting the demand for coking coal, which is essential for steel production, as well as high-grade thermal coal required for power plants. These gaps in demand mean that some imports are still necessary to fill the void.
While India has made strides in boosting domestic production, the demand for coal-based power generation continues to grow. From April to October 2024, there was a 3.87% increase in coal-based power generation compared to the same period last year.
However, coal imports for blending purposes in thermal power plants saw a sharp 19.5% decline. This is a positive sign, reflecting the increased efficiency in the domestic coal supply chain and the country’s growing self-sufficiency in energy production.
Interestingly, there was a rise in coal imports for the power sector, particularly from imported coal-based power plants.
These plants, which are designed specifically to run on imported coal, saw a 38.4% increase in imports, bringing the total to 30.04 MT, up from 21.71 MT during the same period in the previous year.
On the production side, India saw positive growth in coal output, with an increase of 6.04%. From April to October 2024, domestic coal production reached 537.57 MT, compared to 506.93 MT during the same period in the previous year.
This growth is a direct result of government initiatives aimed at enhancing production capacity and optimising the use of coal within the country.
Follow us
