India’s Coal Import Decline and Domestic Production Growth in 2024
In New Delhi, the Ministry of Coal announced a decrease in coal imports for blending purposes, dropping to 9.79 million tonnes (MT) from last year’s 10.70 MT, marking an 8.5% decline. This reflects India’s commitment to self-sufficiency in coal production. During April-August 2024-25, coal imports slightly increased by 2.2% to 111.20 MT compared to 108.81 MT the previous year. However, the non-regulated sector saw a 10.3% decline in the same period.
Coal-based power generation grew by 4.97% from April to September 2024 compared to the previous year. Coal production also rose by 5.79%, reaching 453 MT compared to 428.21 MT in the same period of FY 2023-24. This growth highlights the government’s efforts to enhance domestic production.
In terms of value, the cost of imported coal from April-August 2024-25 was Rs. 120,532.21 crore, compared to Rs. 133,461.65 crore the previous year, resulting in a saving of Rs 12,929.44 crore, or approximately 9.69%. Despite having the fifth-largest coal reserves globally, India remains the second-largest coal consumer, necessitating imports for coking coal and high-grade thermal coal to support industries like steel.
Doubts Revealed
Coal Import -: Coal import means buying coal from other countries. India imports coal to use in factories and power plants.
Blending Purposes -: Blending purposes refer to mixing different types of coal to get the right quality for use in power plants.
Self-sufficiency -: Self-sufficiency means being able to produce enough of something on your own without needing to buy from others.
Non-regulated Sector -: The non-regulated sector includes industries that are not controlled by strict government rules, like some factories.
Coal-based Power Generation -: Coal-based power generation is making electricity by burning coal in power plants.
Coking Coal -: Coking coal is a special type of coal used to make steel, which is very important for building things.
High-grade Thermal Coal -: High-grade thermal coal is a high-quality coal used in power plants to produce electricity.
Rs 12,929.44 crore -: Rs 12,929.44 crore is a large amount of money, where ‘Rs’ stands for Indian Rupees, and ‘crore’ is a term used in India to represent ten million.