Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Thermal Coal Imports Drop 5% in FY25; Govt Eyes Zero Imports by FY26

India’s thermal coal imports declined by 5.04% to 16.71 crore tonnes (MT) in FY25, down from 175.96 MT the previous year, driven by increased domestic coal production, which reached 105 crore tonnes. The government now targets eliminating all substitutable coal imports by FY26, as it aims to strengthen energy security and reduce reliance on foreign sources.

Total coal imports—including coking coal and other grades—also fell nearly 2% to 263.56 MT. Coking coal imports dropped 5.48% to 54.08 MT. Data from the commerce ministry shows a 20% reduction in coal-related import value, which stood at Rs2,61,950 crore in FY25. This is a significant cost saving compared to Rs3,32,595 crore in FY24.

The domestic supply boost stems from robust production by Coal India Ltd (781.05 MT) and a 28.1% year-on-year rise in output from commercial and captive producers (197.5 MT). Since the launch of commercial coal mining in 2020, 125 mines have been auctioned, with a cumulative production capacity of over 273 MT.

To further curb dependency, the government is encouraging coal-based power plants reliant on imported coal to start blending with domestic fuel. Post achieving import substitution, India plans to invest in coal gasification to manufacture methanol, ethanol, ammonium nitrate, and dimethyl ether—targeting 100 MT of coal gasified annually by FY2030. The Coal Ministry has set a domestic production goal of 1.13 billion tonnes for FY26.