India saves $6.93 billion forex as coal imports dip due to rise in local production in FY25

New Delhi, May 13 (IANS) Coal imports in the country declined by 9.2 per cent to 220.3 million tonnes (MT) during April 2024 to February 2025 -- compared to 242.6 MT in the same period of previous fiscal year due to an increase in domestic production, the government said on Tuesday.

This reduction in coal imports resulted in foreign exchange savings of approximately $6.93 billion (₹53137.82 crore) for the country, said the Ministry of Coal.

The non-regulated sector, excluding the power sector, experienced a more significant decline, with imports dropping by 15.3 per cent year-on-year. Although coal-based power generation grew by 2.87 per cent from April 2024 to February 2025 compared to the previous year, imports for blending by thermal power plants sharply decreased by 38.8 per cent. This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production, the statement explained.

The government has implemented several initiatives, including Commercial Coal Mining and Mission Coking Coal, to enhance domestic coal production and reduce imports. These efforts have also led to an encouraging 5.45 per cent growth in coal output during the April 2024 to February 2025 period, compared to the same period of FY 2023-24.

India's coal sector plays a pivotal role in supporting its rapidly growing economy, with coal serving as a primary energy source for critical industries like power, steel and cement, etc.

However, the country faces a significant challenge in meeting its domestic coal demand, especially for coking coal and high-grade thermal coal, which are in short supply within the country's reserves. As a result, coal imports have been vital to meet the needs of key sectors, including steel.

The Ministry of Coal has been implementing strategic measures to strengthen domestic production and ensure a secure coal supply, aligning with India's goals of reducing coal imports and enhancing energy security.

By prioritising domestic coal output, the government aims to march ahead towards Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth, the statement added.

--IANS

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