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 India's coal imports declined by 3.1 per cent to 149.39 million tonnes (MT) during April-October period of FY 2024-25 from 154.17 MT in the same period of the previous year due to the increase in domestic production, according to an official statement issued on Thursday. 

Additionally, the Non-Regulated Sector (other than power) witnessed a more significant drop of 8.8 per cent, during April-October 2024 as compared to the same period of last year.

Despite possessing the fifth-largest coal reserves globally, India faces a significant shortfall in certain coal types, particularly coking coal and high-grade thermal coal, which are not adequately available from domestic sources.

This gap in supply necessitates coal imports to sustain key industries, including steel production, and to meet the growing energy demand.

Although there was a significant growth of 3.87 per cent in coal-based power generation from April 2024 to October 2024 compared to the same period last year, imports for blending purposes by thermal power plants decreased substantially by 19.5 per cent during the same period, the Coal Ministry statement said.

This decline underscores India’s steadfast commitment to achieving self-sufficiency in coal production and reducing reliance on imports, the statement explained.

The increase in coal imports for the power sector is attributed to the imported coal-based power plants. These plants are designed to utilise only high-grade imported coal and their imports increased to 30.04 MT during this period, from 21.71 MT in the corresponding period of the previous year, which represents a growth of 38.4 per cent.

Domestic coal production during April-October 2024 increased by 6.04 per cent to 537.57 MT compared to 506.93 MT in the same period of FY 2023-24.

This upward trend reflects the government's ongoing efforts to streamline coal usage and enhance domestic production, the statement said.

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 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 statement added.