India imported about 265 million tonnes (mt) of coal worth Rs 3.1 trillion in FY24, an increase of 11.3 per cent from 238 mt worth Rs 3.8 trillion a year ago. This includes 59 mt of coking coal and 205 mt of non-coking coal worth Rs 1.33 trillion, union coal minister G Kishan Reddy said on Wednesday.
In FY23, the imports of coking and non-coking coal in the country were 56 mt and 182 mt, respectively.
India, the second-largest producer of coal and the largest importer of coking coal, is trying to increase domestic coking coal production to 140 mt by FY30 and reduce dependency on imports for its power sector. The country primarily imports coal from Indonesia, along with some from Australia.
Coal India Limited (CIL) supplied 352,484 tonnes of imported coal worth Rs 4.93 crore to nine state generating companies (Gencos) and independent power producers (IPPs), including KSK Mahanadi, Jindal India Thermal Power Ltd, and Rattan India Power, between September 2022 and January 2023, Reddy said in a written reply to a question in the Lok Sabha.
NLC Tamil Nadu Power Ltd (NTPL), a subsidiary of NLC India Ltd (NLCIL), which operates a 2×500 MW thermal power station in Tuticorin, Tamil Nadu, is currently procuring imported coal. NLCIL imported 826,440 tonnes worth Rs 7.88 crore in 2024-25, compared to 365,896 tonnes of coal worth Rs 2.9 billion a year ago.
NTPL is procuring high-GCV import coal with GCV 5800 kcal per kg, blending it only with low domestic coal of GCV 3250 kcal per kg in a 30:70 ratio.
As per the current import policy, coal imports are under the Open General Licence (OGL), and consumers are free to import coal from the source of their choice as per their contractual prices, subject to applicable duties.
In a press briefing last month, the coal minister informed that between April and November 2024, coal imports declined by 5.35 per cent, saving approximately $3.91 billion, and coal imports for domestic power plant blending fell by 23.56 per cent. In FY24, India produced 997.8 mt of coal, an increase of 11.7 per cent from a year ago.
To increase production and reduce import dependency, the coal ministry in 2020 introduced commercial coal mine auctions. As of January, the coal ministry allotted 184 mines, with 65 blocks receiving mine opening permissions. Total production from these blocks reached 136.59 mt, registering a 34.20 per cent year-on-year increase. This is expected to exceed the 170 mt target in FY25, and 210 mt of coal is likely to come from commercial mines in FY26.
