India saves $5.43 billion forex as coal imports dip due to rising local production
Coal imports to the country during April-December period of the current financial year declined by 8.4 per cent to 183.42 million tonnes (MT) -- from 200.19 MT in the same period of previous financial year due to the increase in domestic production, according to an official statement issued on Tuesday.
The reduction in coal imports resulted in foreign exchange savings of approximately $5.43 billion (Rs 42,315.7 crore) for the country, the Coal Ministry said.
The non-regulated Sector, excluding the power sector, experienced a more significant decline, with imports dropping by 12.01 per cent year-on-year.
Although coal-based power generation grew by 3.53 per cent from April to December 2024 compared to the previous year, imports for blending by thermal power plants to increase the calorific value of coal decreased sharply by 29.8 per cent.
This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production, the statement pointed out.
The government has implemented several initiatives, including Commercial Coal Mining and Mission Coking Coal, to enhance domestic coal production and reduce imports. These efforts have also led to an encouraging 6.11 per cent growth in coal output during the April-December 2024 period compared to the same period of FY 2023-24.
India's coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a primary energy source for critical industries like power generation, steel production, and cement manufacturing.
However, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply in the country's reserves. As a result, coal imports have been vital to meet the needs of key sectors, including steel production.
The Ministry of Coal has been implementing strategic measures to strengthen domestic production and ensure a secure coal supply, aligning with India's goals of reducing coal imports and enhancing energy security.
By prioritising domestic coal output, the government aims to march ahead towards the Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth, the official statement added.
