THEBUSINESSBYTES
BUREAU
NEW
DELHI, NOVEMBER 1, 2026
India’s coal imports
declined by 5.83 per cent to 104.57 million tonnes (MT) in August 2026 from
111.05 MT in the corresponding month last year, marking a reduction of 6.48 MT
and signalling a gradual shift towards greater reliance on domestic coal
supplies.
The decline, driven
largely by a sharp reduction in imports for blending at domestic coal-based
power plants, comes amid sustained efforts by the Ministry of Coal to ramp up
indigenous production, strengthen transportation infrastructure and improve
supply-chain efficiency.
According to the
latest figures, coal imports by power plants fell 6.39 per cent to 21.32 MT in
August 2026, compared with 22.77 MT in the year-ago period, reflecting improved
domestic coal availability and reduced requirements for imported coal blending.
Significantly,
imports for blending at domestic coal-based (DCB) power plants registered a
steep decline of 35.23 per cent to 3 MT during the month, against 4.64 MT in
August 2025. The sharp contraction points to a reduced dependence on imported
coal to meet blending requirements at indigenous coal-fired power stations.
However, imports by
imported coal-based (ICB) power plants edged up marginally by 0.98 per cent to
18.31 MT from 18.13 MT a year ago. These power stations are specifically
designed to operate primarily on imported coal, making their import
requirements dependent on their operational needs.
Reflecting the
broader shift in the country's coal consumption pattern, the share of imported
coal in total coal consumption declined to 19.30 per cent in August 2026 from
21.20 per cent in the corresponding month last year, representing a reduction
of 1.90 percentage points.
Coking coal imports,
meanwhile, declined by 4.18 per cent to 27.30 MT during August from 28.49 MT in
the year-ago month. Coking coal, a critical raw material for steel
manufacturing, continues to remain an important import category as the quality
and characteristics of domestic reserves limit their suitability for meeting
the industry's entire requirements.
The Ministry of Coal
has been intensifying efforts to strengthen domestic production and offtake,
improve First Mile Connectivity (FMC), expand coal evacuation infrastructure
and ensure efficient monitoring of coal stocks at thermal power plants.
Coordinated
initiatives involving the Ministry of Railways, Coal India Ltd (CIL) and its
subsidiaries are also aimed at ensuring timely and adequate coal supplies to
power utilities, while addressing logistical bottlenecks and improving the
reliability of the domestic supply network.
The latest import figures underline the growing importance of domestic coal production and improved evacuation infrastructure in reducing avoidable dependence on overseas supplies. The substantial decline in imports for blending, in particular, indicates progress towards meeting a larger share of the power sector's requirements through indigenous resources.
The ministry, however, recognises that certain segments, including imported coal-based power plants and the steel industry, will continue to require imported coal owing to specific fuel and raw material requirements.