Monday, 06 Oct, 2025
The government is prioritising increased domestic coal production while aiming to curb non-essential imports. Image Source: IANS
In the financial year 2024–25, India imported a total of 243.62 MT of coal, a decrease from 264.53 MT in 2023–24.
Coal production from captive and commercial mines stood at 15.57 million tonnes (MT) in June, while coal dispatches reached 17.31 million tonnes (MT). In the first quarter of the financial year 2025–26, there was a strong year-on-year rise, with production increasing by 16.39 percent and dispatches by 13.03 percent compared to the same period last year. This growth highlights greater efficiency and improved utilization of mining capacity. The increase supports a steady coal supply to crucial sectors such as power, steel, and cement, thereby strengthening the core of India’s industrial framework. These achievements reflect the Ministry’s continued focus on boosting domestic coal output, playing a vital role in building a resilient and self-reliant India.
In the financial year 2024–25, India imported a total of 243.62 MT of coal, a decrease from 264.53 MT in 2023–24. This reduction of approximately 20.91 MT in coal imports resulted in a foreign exchange saving of around ₹60,681.67 crore. The majority of the country’s coal demand is met through domestic production. The Ministry of Coal has set a target to ramp up indigenous coal output to around 1.5 billion tonnes by FY 2029–30. The government is prioritizing increased domestic coal production while aiming to curb non-essential imports. In line with this goal, the Ministry introduced the Coal Logistic Plan and Policy in February 2024 to enhance infrastructure for efficient coal transportation, keeping in view the projected rise in production by 2029–30.
Source: Ministry of Coal
In a landmark achievement that underscores India’s growing energy self-reliance, the country has surpassed the 1 billion metric tonne mark in both coal production and dispatch during the last financial year. This historic milestone not only bolsters the nation’s energy security but also ensures a steady, affordable, and reliable power supply, an essential component for sustaining economic growth.
Behind this success lies the tireless effort of nearly 500,000 workers directly engaged in coal mining, along with countless others contributing indirectly to the sector. However, the feat is far from an overnight development. It is the result of a decade-long push for structural reforms in a sector once plagued by inefficiency and shortfalls.
In 2014, India’s coal industry was grappling with acute production deficits amid surging demand. Between 2009 and 2014, coal and lignite output grew at a sluggish pace from 566 million tonnes to just 610 million tonnes, reflecting a compounded annual growth rate of only 1.89 percent.
The Ministry of Coal has taken a number of steps to increase the coal production in the country. Some of the steps are - Regular reviews to expedite the development of coal blocks, Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 (MMDR Act) for enabling captive mines owners (other than atomic minerals) to sell up to 50 percent of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government on payment of such additional amount, Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines, and Project Management Unit (PMU) for hand-holding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines.
To reduce reliance on coal imports, the Government has implemented several key measures aimed at boosting domestic coal supply. The Annual Contracted Quantity (ACQ) for power plants has been restored to 100 percent of the normative requirement, up from the earlier 90 percent for non-coastal and 70 percent for coastal plants, ensuring higher availability of domestic coal.
In a move to support long-term supply security, the tenure of coking coal linkages under the Non-Regulated Sector (NRS) linkage auction policy has been extended up to 30 years. Additionally, since 2022, coal companies have been directed to meet the full Power Purchase Agreement (PPA) requirements of all existing linkage holders in the power sector, regardless of their ACQ or trigger levels, significantly reducing import dependence. The Government has also launched a dedicated Coking Coal Mission to ramp up domestic production for the steel industry. Furthermore, Imported Coal-Based (ICB) power plants are now allowed to procure coal under the Revised SHAKTI Policy, 2025, which is expected to reduce their reliance on imported coal.
Coal continues to serve as a cornerstone of India’s industrial economy, fueling critical sectors like power, steel, and cement. However, challenges persist in meeting the demand for specific coal grades, particularly coking and high-grade thermal coal, which remain in limited supply domestically. Imports are still essential to bridge this gap, especially for steel production.
To address this, the Ministry of Coal is actively pursuing long-term strategies aimed at expanding domestic production capacity and reducing dependence on imports, in line with India’s broader energy security objectives.
