India plans to reduce thermal coal imports for power plants by 30% in 2026, part of a broader push to enhance domestic energy security and cut reliance on foreign coal supplies. The move comes amid rising global coal prices and the government’s focus on boosting domestic production and promoting alternative energy sources.
According to officials from the Ministry of Power and Coal India Limited, domestic coal output is expected to increase significantly in 2026, enabling thermal power plants to meet more of their fuel needs locally. Enhanced mining operations and improvements in logistics and supply chain management are central to achieving the import reduction target.
Currently, India imports around 200 million tonnes of thermal coal annually, primarily from Indonesia, Australia, and South Africa. A 30% reduction would lower imports by approximately 60 million tonnes, saving foreign exchange and reducing exposure to volatile international coal prices.
Analysts note that the move aligns with India’s long-term energy strategy, which emphasizes enhanced domestic mining, clean energy adoption, and efficiency improvements in coal-based power generation. Coal India has already ramped up production at several major mines, and captive coal blocks for power plants are being increasingly utilized.
While the plan is ambitious, challenges remain, including infrastructure bottlenecks in coal transport and distribution, as well as environmental concerns associated with increased mining. Experts say coordinated planning between state utilities, mining companies, and the central government will be critical to meet the 30% reduction target without affecting power generation reliability.
