Thursday, July 2, 2026

India imports less coal despite higher power demand

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India’s coal imports fell 12.95% year-on-year in April 2026 to 21.13 million tonnes (MT), down from 24.27 MT in April 2025, despite nearly a 9% increase in power demand during the month.According to government data, coal imports by power plants declined 24.89% to 3.51 MT from 4.67 MT a year earlier, driven by improved domestic coal supplies and reduced dependence on imported coal for blending.

Imports by power plants designed to run on imported coal recorded the sharpest decline, falling 27.45% to 2.88 MT from 3.97 MT. Coal imports for blending by domestic power plants also dropped 11.26% to 0.63 MT from 0.71 MT.

Coal imports accounted for 19.68% of the country’s total coal consumption in April 2026, compared with 21.69% in the same month last year, indicating greater reliance on domestic production.Meanwhile, coking coal imports, used primarily by the steel industry, rose marginally by 1.34% to 6.01 MT from 5.93 MT. The government said the increase was in line with continued growth in domestic steel production and reflected the country’s limited domestic coking coal reserves rather than any shortage of thermal coal.The latest data suggests India’s efforts to boost domestic coal production are helping reduce reliance on imported fuel for power generation, even as electricity demand continues to rise.

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