Coal import drops 7.9% in FY 2024-25, saves over ₹60,000 crore in foreign exchange

India’s coal imports dropped by 7.9% to 243.62 million tonnes (MT) in the financial year 2024-25, from 264.53 MT in the previous fiscal, resulting in foreign exchange savings of more than ₹60,000 crore, the government said on Tuesday.

The non-regulated sector, which excludes the power sector, recorded a sharper decline of 8.95% year-on-year.

Despite a 3.04% increase in coal-based power generation during the fiscal, imports for blending by thermal power plants fell sharply by 41.4%.

“This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production,” an official readout said.

The government has launched several initiatives such as Commercial Coal Mining and Mission Coking Coal to boost domestic coal output. These measures resulted in a 5% growth in coal production during FY 2024-25 compared to the previous year.

Coal remains a cornerstone of India’s energy mix, supporting key sectors including power, steel, and cement. However, challenges persist in meeting domestic demand for coking coal and high-grade thermal coal due to limited reserves.

“As a result, coal imports have been vital to meet the needs of key sectors including steel,” the ministry said.

“The Ministry of Coal has been implementing strategic measures to strengthen domestic production and ensure a secure coal supply, aligning with India's goals of reducing coal imports and enhancing energy security. By prioritizing domestic coal output, the government aims to march ahead towards Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth,” it added.