India's Coal Import Demand Surges Amid Domestic Production Increase

India, with one of the world's largest coal reserves, has seen a 0.9% rise in coal imports from April-July FY25, reaching 90.51 million tonnes. This increase is necessary to meet the demand for coking and high-grade thermal coal, essential for industries like steel.

India's coal imports have seen a slight uptick of 0.9% during the April-July period of FY25, reaching 90.51 million tonnes, as per an official statement released on Wednesday. This modest rise comes amid a significant 9.56% increase in domestic coal production, which climbed to 321.40 million tonnes from 293.35 million tonnes in the previous financial year.

Despite possessing the world's fifth-largest coal reserves and being the second-largest consumer, India faces a pressing need for specific types of coal that are not readily available domestically. The Ministry of Coal highlighted the critical need for coking coal and high-grade thermal coal imports, essential for industries like steel.

In July alone, coal imports surged by 15.9% to 21.81 million tonnes compared to the same month in the previous year. However, imports for blending purposes saw a decline of 8.2%, even as coal-based power generation grew by 10.18% year-on-year from April to July 2024. Additionally, the non-regulated sector's coal imports dropped significantly by 11%, from 50.53 million tonnes to 44.97 million tonnes.

(With inputs from agencies.)