During the Financial Year 2024–25, coal imports fell by 7.9% to 243.62 million tonnes (MT), down from 264.53 MT in the previous fiscal year.

This reduction resulted in foreign exchange savings of approximately $7.93 billion (₹60681.67 crore), the Ministry of Coal said in a statement. Notably, the Non-Regulated Sector, excluding the power sector, experienced a more significant decline, with imports dropping by 8.95% year-on-year.

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Although coal-based power generation grew by 3.04% in FY 2024–25 compared to the previous fiscal year, imports for blending by thermal power plants dropped sharply by 41.4%.

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 % growth in coal output during FY 2024-25 compared to FY 2023-24, the ministry added.

India’s coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a primary energy source for critical industries like power, steel, cement, etc.

However, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply within the country’s reserves.

As a result, coal imports have been vital to meet the needs of key sectors including steel. Recently, in an article, Union Minister of Coal and Mines, G Kishan Reddy announced that India will soon be launching its first coal trading exchange.

The platform will revolutionize coal accessibility for industries, and enable seamless trading and transparent price discovery while ensuring a stable supply of fuel to power our growing economy, he added.

As we continue to grow and become a $5 trillion economy and further transform into a fully developed $35 trillion economy by 2047, our energy needs will continue to grow, and coal will continue to be a critical pillar in our energy mix, the minister said. India’s per capita electricity consumption of 1.10 MWh is less than one-third the world average of 3.42 MWh, he added.