Coal imports fall nearly 13pc in April as India accelerates import substitution drive

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 2, 2026

India's efforts to reduce dependence on imported coal gathered further momentum in April 2026, with total coal imports declining by nearly 13 per cent year-on-year, reflecting the sustained success of the Centre's import substitution strategy and improved domestic coal availability, particularly for the power sector.

According to the Ministry of Coal, the country's total coal imports stood at 21.13 million tonnes (MT) in April 2026, compared to 24.27 MT during the corresponding month last year. The reduction of 3.14 MT, or about 12.95 per cent, underscores the impact of continued policy interventions aimed at boosting domestic coal production and ensuring reliable supplies to key consuming sectors.

The power sector recorded one of the sharpest declines in coal imports during the month. Coal imports by power plants dropped by 24.89 per cent, falling from 4.67 MT in April 2025 to 3.51 MT in April 2026. The decline has been attributed to improved domestic coal linkage supplies and a reduced requirement for imported coal blending, indicating greater self-reliance in meeting the country's growing electricity demand.

Imported Coal-Based (ICB) power plants witnessed the steepest reduction among all categories tracked, with imports falling by 27.45 per cent from 3.97 MT to 2.88 MT. Likewise, Domestic Coal-Based (DCB) power plants, which import coal primarily for blending purposes, registered an 11.26 per cent decline in imports, from 0.71 MT to 0.63 MT. The trend highlights the effectiveness of measures undertaken to enhance assured domestic coal supplies and gradually reduce dependence on imported fuel for blending.

Another significant indicator of the country's progress towards energy security was the narrowing of coal import dependence. Coal imports accounted for 19.68 per cent of the country's total coal consumption in April 2026, down from 21.69 per cent a year earlier, marking a decline of more than two percentage points.

While overall imports registered a notable decline, coking coal imports remained largely stable. Imports of coking coal, which is primarily used by the steel industry and for which India has limited domestic reserves, increased marginally by 1.34 per cent from 5.93 MT to 6.01 MT. The Ministry said the slight increase aligns with continued growth in domestic steel production and reflects resource-specific requirements rather than any shortfall in domestic coal availability.

The Ministry of Coal attributed the consistent decline in imports across various categories to its sustained focus on expanding domestic coal production and improving supply logistics. Key initiatives include strengthening First Mile Connectivity, close monitoring of coal stock positions at thermal power plants, and coordinated efforts with the Ministry of Railways, Coal India Limited (CIL) and its subsidiaries to ensure timely and adequate coal supplies to power utilities.

These initiatives have progressively reduced the country's dependence on imported coal while maintaining healthy coal inventories at thermal power stations. The Ministry reaffirmed its commitment to further enhancing domestic coal production, improving evacuation infrastructure and promoting quality-based grading systems to sustain the downward trend in coal imports and strengthen India's long-term energy security.