Coal import for blending by power sector declines 8.5% in H1 of FY25

New Delhi: Coal import for blending by the power sector came down by 8.5 percent in April-September period (H1) of the current fiscal in comparison to the same period a year ago due to increase in domestic coal production, showed data shared by the Ministry of Coal. “Despite a notable growth of 4.97 percent in coal-based power generation from April 2024 to September 2024 compared to the same period last year, imports for blending purposes decreased to 9.79 MT compared to last year which was 10.70 MT, indicating a decline of 8.5 percent during the same period,” said the Ministry of Coal on Tuesday.

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“India, endowed with the fifth-largest coal reserves in the world, stands as the second-largest consumer of coal, driven by a rapidly growing economy. However, the current consumption landscape reveals a critical need for imports, particularly for coking coal and high-grade thermal coal, which are not sufficiently available within domestic reserves. This shortfall necessitates imports to support key industries, including steel,” said the ministry.

Overall coal imports increase 2.2% y-o-y during April-August period

Coal imports during April-August period of FY 2024-25 experienced a marginal increase of 2.2 percent, reaching 111.20 MT compared to 108.81 MT in the previous year. However, non-regulated sector saw a significant decline of 10.3 percent, during April-August period of 2024-25 as compared to the same period of last year.

“This decline underscores India’s steadfast commitment to achieving self-sufficiency in coal production and reducing reliance on imports. Increase in coal import for power sector is attributed to the import of coal by imported coal-based power plants (designed to utilize imported coal only) i.e. 26.14 MT during this period, up from 17.07 MT, reaching a growth of 53.1 percent in the corresponding timeframe last year,” said the Coal Ministry.

However, in value terms, the price of overall imported coal during April-August 2024-25 is Rs 1,20,532.21 crore, whereas the price of overall imported coal during the corresponding period last year (2023-24) was Rs 1,33,461.65 crore. These results in a saving of Rs 12,929.44 crore, which is a saving of approximately 9.69 percent in value terms compared to the last year.

Coal production grows 5.79% in April-September period

Moreover, coal production during the April-September 2024 period demonstrated a commendable increase, reaching 453 MT compared to 428.21 MT in the same period of FY 2023-24, marking a growth of 5.79 percent. “This upward trend reflects the government’s ongoing efforts to streamline coal usage and enhance domestic production,” said the ministry.

“The Ministry of Coal continues to implement strategic initiatives aimed at bolstering coal production and improving availability. These efforts are not only focused on safeguarding foreign exchange 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,” the ministry added.

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