India Expands Use Of Domestic Coal At Imported Fuel-Based Power Plants

New Delhi, Jun 24 (KNN) India is increasing the use of domestic coal at power plants originally designed to run on imported fuel, as the country seeks to reduce costly overseas purchases and strengthen energy self-reliance.
 
Government and industry officials said domestic coal is currently being used to operate 5.7 GW of the 18.7 GW installed capacity at imported coal-based power plants this year. Trials are also underway to extend the switch to an additional 4.3 GW of capacity.
 
Imports from Key Suppliers Decline 
 
Imported coal-based plants have traditionally sourced fuel from Indonesia, South Africa and Russia.However, imports from Indonesia and South Africa declined by 21 percent and 68 percent, respectively, during January–April, according to iEnergy Natural Resources. 
 
Officials said higher renewable energy generation has eased pressure on domestic coal supplies, enabling more local fuel to be diverted to coastal plants designed for imported coal, reported Reuters.
 
Plants Adapt to Higher Domestic Coal Usage
 
India has long aimed to reduce coal imports, but imported coal-based plants faced technical constraints due to the higher ash content of domestic coal. 
 
Officials said operators have gradually modified units to use blended fuel more efficiently, with some plants raising the share of domestic coal in their fuel mix to as much as 70 percent. 
 
Coal Ministry Facilitates Domestic Supply 
 
The Coal Ministry has introduced doorstep supply arrangements for imported coal-based plants, which have already booked 16 million metric tonnes of domestic coal. 
 
Meanwhile, coal-fired power generation rose 10 percent year-on-year in May, the fastest growth since May 2024, while thermal coal imports fell to a four-year low of 65 million metric tonnes during January–May, supported by higher domestic output and increased renewable energy generation. 
 
(KNN Bureau)