The Ministry of Power exploring the feasibility of transitioning thermal plants to use a combination of local and imported coal. With 17 power plants running on imported coal, contributing a total capacity of 17.97 GW, this shift could mark a pivotal moment for the country’s energy future.
These plants have traditionally been crucial in meeting peak demand during summer months when power shortages are at their most critical. The ministry is currently conducting a feasibility study to assess whether these plants can efficiently integrate domestic coal into their operations. Although experts agree that completely replacing imported coal with local alternatives may not be feasible, the hybrid model—where plants use a mix of both fuels—could offer a promising solution. The technical study, being carried out by the Central Electricity Authority (CEA), will help determine whether such a model can be implemented without compromising plant efficiency or increasing operational costs.
If the transition proves viable, it would likely require significant capital investments for infrastructure upgrades and technology adjustments at these plants. This is particularly important given the challenges posed by the higher ash content in domestic coal, which is known to be less efficient and harder to manage compared to imported varieties. As part of this initiative, the Ministry of Coal has already offered 10 million tonnes of high-quality domestic coal from two major suppliers. This coal could be tested in the pilot phase to gauge its performance in real-world plant conditions. The move comes as part of a broader government push to ensure energy security and reduce reliance on foreign imports. Last year, the Coal Ministry announced its plan to eliminate the need for imported coal by 2026, anticipating a surplus in domestic coal production. According to officials, this shift is expected to have long-term benefits not only in terms of energy security but also in reducing the financial strain caused by expensive coal imports.
For many years, India’s coal-powered plants have struggled with the issue of high ash content in domestic coal. This challenge has forced them to depend on imported coal, which is more suited for power generation due to its lower ash content and higher energy efficiency. However, with the country’s expanding coal production, the government is eager to find a way to balance the use of domestic coal without compromising the performance of its thermal power plants. Recent data underscores the urgency of addressing India’s coal dependency. The country imported 183.42 million tonnes of coal between April and December of FY25, a slight decrease from the previous year. Despite this, imports remain high, and the government is keen to curb this reliance. By enhancing domestic coal production and improving the technology used in power plants, the government hopes to mitigate logistical challenges and reduce the need for imported coal in the coming years.
As of March 2025, India has already surpassed its coal production target for the year, reaching over 1 billion tonnes. The government is optimistic that the production target of 1.13 billion tonnes for FY26 will be met as well, further bolstering the country’s energy self-sufficiency. With these steps, India aims to increase the domestic availability of coal, not only ensuring energy security but also addressing environmental concerns associated with excessive coal imports. The shift to domestic coal use, however, is not without its hurdles. Beyond technological adjustments, the coal sector faces challenges related to transportation, infrastructure, and mining efficiency.
The government has already initiated several reforms to streamline coal production and logistics, but it remains to be seen whether these measures will be enough to fully transition power plants to domestic coal. In the meantime, the feasibility study being conducted will be critical in determining the path forward. If successful, it could reshape India’s energy landscape, creating a more self-reliant and sustainable power generation sector while simultaneously addressing environmental concerns linked to coal use. This push towards a hybrid coal model represents not just an economic shift but also a broader strategy for sustainability, in line with India’s commitment to reducing its carbon footprint and achieving cleaner energy goals in the future.
