India has the fifth largest reserves of coal in the world. But it still faces a significant shortfall in certain types of coal, such as coking coal and high-grade thermal coal. This is mostly due to the fact that such coal types are not easily sourced through domestic means. Yet, the Ministry of Coal reports a stark reduction in coal imports to the country.
According to a recent statement by the coal ministry of India, coal imports from April to October this year slipped more than 3 per cent to 149.39 million tonnes (MT). Compared to this, last year, the same period posted imports of 154.17MT.
This is in contrast with at least a 3.87 per cent jump in coal-based power generation for the same period, underlining a widening gap between supply and demand.
Imports of coal for blending purposes slid 19.5 per cent for the April-October window, and the ministry attributed it to “India’s steadfast commitment to achieving self-sufficiency in coal production and reducing reliance on imports.”
Yet, power plants using imported coal only took in at least 38.4 per cent more coal than the previous period—almost 30MT in the 2024 window versus just 21.7MT in the corresponding period a year ago.
Coal production in the country, however, shot up. For the same period, production jumped more than 6 per cent to 537.5MT. “This upward trend reflects the government’s ongoing efforts to streamline coal usage and enhance domestic production,” said the ministry.
While domestic coal production increases, imports have significantly reduced. Yet, imported coal-using power plants demand more of it. This could potentially cause a gap between supply and demand. The ministry’s statement has yet to address the same while providing the data indicating such a possible issue.