India’s coal imports rise to 90.5 MT amid surge in power demand

New Delhi: India's coal imports during the April-July period of the current fiscal (FY25) increased 0.9% to reach 90.51 million tonnes (mt) compared with 89.68mt in same period last fiscal, the coal ministry said on Wednesday.

The growth comes amid a surge in power and a 10.18% growth in coal-based power generation in the first four months of this fiscal.

"Increase in coal import for power sector is attributed to the substantial quantity of coal import by imported coal-based power plants i.e. 17.69mt during this period, up from 10.12mt in the corresponding timeframe last year," the statement said.

Power demand

The peak power demand reached a record of 250GW in May this year.

Also read | Govt to digitize land acquisition process for coal mines as Net Zero looms

The ministry, however, noted that despite a notable growth of 10.18% in coal-based power generation from April 2024 to July 2024 compared to the same period last year, imports for blending purposes decreased by 8.2% during the same period.

"This decline underscores India’s steadfast commitment to achieving self-sufficiency in coal production and reducing reliance on imports," it said, adding that coal imports by the non-regulated sector saw a significant decline of 11%, falling from 50.53mt to 44.97mt during the same time frame.

Further, non-coking coal imports increased by 2% during this timeframe, while coking coal imports declined by 2.6%. In July 2024 alone, coal imports rose by 15.9%, reaching 21.81 mt compared with 18.82 mt in July 2023.

Energy security

The ministry added that it coal continues to implement strategic initiatives aimed at bolstering coal production and improving availability.

Also read: Quick deliveries top agenda for Indian energy hunters

"These efforts are not only focused on safeguarding foreign reserves but also on enhancing the nation’s energy security. The proactive measures taken by the government to increase domestic coal output will ultimately reduce dependence on imports and contribute to the overall sustainability of India's energy landscape," it said.

Noting that the dynamics of coal imports present certain challenges, the statement said that the Union government’s strategic focus on increasing coal production and curbing coal import reflects a positive outlook for the country’s energy future.

The commitment to achieving self-sufficiency in coal production is vital for maintaining economic growth and ensuring energy security in the coming years, it added.

Also read: The ‘transition’ to green energy isn’t reducing carbon emissions