India, with the fifth-largest coal reserves globally, is the second-largest coal consumer, largely driven by its expanding economy. Despite these reserves, the country faces a gap in domestic coal availability, particularly for coking coal and high-grade thermal coal, essential for industries like steel, necessitating imports.
During the April-July 2024 period, coal imports rose marginally by 0.9%, reaching 90.51 million tonnes (MT) compared to 89.68 MT in the same period last year. Specifically, non-coking coal imports saw a 2% increase, while coking coal imports declined by 2.6%. In July 2024, coal imports spiked by 15.9%, amounting to 21.81 MT, compared to 18.82 MT in July 2023.
Despite a 10.18% increase in coal-based power generation between April and July 2024, imports for blending purposes dropped by 8.2%, reflecting India’s efforts to reduce import dependence. Coal imports for power generation increased significantly, with 17.69 MT imported for coal-based plants designed to use only imported coal, compared to 10.12 MT in the same period last year. The non-regulated sector saw an 11% drop in coal imports, decreasing from 50.53 MT to 44.97 MT.
Meanwhile, domestic coal production surged by 9.56% in the April-July 2024 period, reaching 321.40 MT compared to 293.35 MT in FY 2023-24. This increase highlights the government’s ongoing initiatives to boost coal production and optimize domestic resources to meet the growing demand.
