New Delhi: India, with the fifth-largest coal reserves in the world, stands as the second-largest consumer of coal, driven by a rapidly growing economy. This has resulted in a significant increase in imports of coal during the April-July period of 2024-25, which reached 90.51 million tonnes (MT), compared to 89.68 MT in the previous year, a PIB press release stated.
The increase in coal imports is mainly due to the rising demand for coal-based power generation. The country’s coal-based power sector has witnessed a growth of 10.18% in power generation from April 2024 to July 2024 compared to the same period last year. However, imports for blending purposes decreased by 8.2% during the same period, indicating that India is committed to reducing its reliance on imports.
The country’s coal production also showed an increase of 9.56% during the April-July 2024 period, reaching 321.40 MT compared to 293.35 MT in the same period of FY 2023-24. This growth is being driven by the government’s efforts to streamline coal usage and enhance domestic production capabilities. The government’s strategic focus on increasing coal production and curbing coal import reflects a positive outlook for the country’s energy future.
Despite the challenges posed by the current coal import situation, the Indian government remains committed to achieving self-sufficiency in coal production and reducing reliance on imports. The government’s strategic initiatives are aimed at bolstering coal production and improving availability, not only for safeguarding foreign reserves but also for enhancing the nation’s energy security. The proactive measures taken by the government to increase domestic coal output will eventually reduce dependence on imports and contribute to the overall sustainability of India’s energy landscape.