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India’s Coal Consumption Rises, Import Needs Highlighted Amid Growing Economy

admin by admin
September 25, 2024
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India, boasting the fifth-largest coal reserves in the world, has emerged as the second-largest consumer of coal, driven by its rapidly expanding economy. However, the current consumption landscape underscores a significant reliance on imports, particularly for coking coal and high-grade thermal coal, which are insufficiently available from domestic sources. This gap is critical for supporting key industries, especially steel manufacturing.

During the April-July period of FY 2024-25, coal imports saw a slight increase of 0.9%, reaching 90.51 million tonnes (MT), up from 89.68 MT in the same period last year. Notably, non-coking coal imports rose by 2%, while coking coal imports experienced a decline of 2.6%. A significant surge in coal imports was recorded in July 2024, with a 15.9% increase, hitting 21.81 MT compared to 18.82 MT in July 2023.

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Despite a robust 10.18% growth in coal-based power generation from April to July 2024 compared to the same timeframe last year, imports intended for blending purposes fell by 8.2%. This reduction reflects India’s commitment to achieving greater self-sufficiency in coal production and reducing dependence on imports. The increase in coal imports for the power sector is attributed to a substantial rise in imports by coal-based power plants, which are designed to use exclusively imported coal, reaching 17.69 MT during this period, up from 10.12 MT last year.

Additionally, coal imports by the non-regulated sector witnessed an 11% decline, dropping from 50.53 MT to 44.97 MT during the same period.

On a positive note, coal production from April to July 2024 showed impressive growth, reaching 321.40 MT, up from 293.35 MT in the same period of FY 2023-24, marking an increase of 9.56%.

The Ministry of Coal is actively implementing strategic initiatives aimed at boosting coal production and ensuring availability. These efforts not only aim to preserve foreign reserves but also enhance the nation’s energy security.

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