India reduced its coal imports by 9.2% from April 2024 to February 2025, supported by a rise in domestic production, according to data released by the Ministry of Coal on Wednesday.
During the first 11 months of the 2024–25 fiscal year, coal imports dropped to 220.3 million tons. This decline helped India save around $6.93 billion.
At the same time, domestic coal output increased by 5.45%, reaching 929 million tons. The government’s ongoing efforts to boost local coal production played a key role in lowering dependence on imported coal.
India, the world’s second-largest coal consumer, has large reserves of coal. However, its domestic coal is often lower in quality and has less energy content compared to imported coal.
Despite that, India used more locally mined coal in 2024 to meet rising electricity demand. As a result, coal-fired power generation and related emissions hit record highs.
New coal power capacity additions remained strong. India added 4 gigawatts (GW) of new coal capacity in 2024, matching 2023 levels and marking the highest additions since 2019.
To meet growing energy needs, India plans to add up to 90 GW of coal-fired capacity by 2032. While renewable energy projects are also expanding rapidly, coal remains central to India’s energy strategy.
Officials say coal will continue to play a vital role in avoiding power shortages, especially during extreme weather events like heatwaves, which strain the electricity grid.
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