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.