India’s energy landscape, data from official sources indicates a notable decline of 32% in coal imports for blending purposes during the fiscal year 2023-24 (FY24).
The total imports stood at 23.92 million tonnes (MT), down from 35.10 MT recorded in FY23. This downturn can be primarily attributed to the robust increase in domestic coal production, which surged to 997.4 MT, marking an impressive 11.67% growth over the previous fiscal year. Central sector power plants emerged as the largest consumers of imported coal for blending, accounting for 48% of the total imports, followed by independent power plants at 33%, and state sector plants at 18.8%. With an installed capacity of approximately 193 gigawatts (GW), domestic coal-based plants play a pivotal role in India’s power generation landscape.
The decline in coal imports is a testament to the government’s efforts to bolster domestic coal production and reduce dependence on foreign sources. Domestic power plants traditionally blend imported coal with coal sourced from domestic mines to enhance calorific value and meet operational requirements. Amid projections of surging power demand, particularly during the summer months, the Ministry of Power has issued directives to coal-based power generating companies to maintain a 6% blending ratio of imported coal at their plants until June. This directive, initially extended until March 2024, underscores the government’s commitment to optimising domestic resources and ensuring energy security.
While coal imports for blending witnessed a sharp decline, imports by plants designed to run on foreign coal surged by 104% to 41.81 MT in FY24 compared to FY23. This trend reflects the evolving dynamics of India’s energy sector, with a gradual shift towards reducing reliance on imported coal. Looking ahead, the coal ministry is expected to intensify efforts to encourage imported coal-based power plants to invest in capital upgrades to facilitate a transition towards domestic fuel sources. With a strategic focus on eliminating imports of substitutable coal by FY26, India is poised to strengthen its energy resilience and achieve greater self-sufficiency in coal supply. The ministry is set to request power plants run on imported coal to make changes in technologies and design to be able to use domestic coal over the next two years, Union coal minister Pralhad Joshi had earlier said.
