India’s Coal Imports For Power Blending Fall 71.5% In Two Years: Govt

New Delhi, Aug 11 (KNN) Coal-based power plants in India have reduced their dependence on imported coal for blending, with imports falling 71.5 percent from 23.9 million tonnes in 2023-24 to 6.8 million tonnes in 2025-26, Minister of State for Coal and Mines Satish Chandra Dubey said in the Rajya Sabha.

The decline has continued in the current financial year, with coal imports for blending standing at 1.7 million tonnes during April-June 2026-27, according to the data presented in the Upper House.

The minister said imports are primarily undertaken for coking coal required by the steel industry and high-grade thermal coal, where domestic availability remains limited due to scarce reserves or other supply constraints.

Coal Imports Decline As Domestic Supply Strengthens

Responding to a question on continued coal imports despite adequate domestic production and Coal India Ltd holding 122.46 million tonnes of stock as of March 12, 2026, Dubey said imports also continue for specific operational requirements.

These include Imported Coal-Based (ICB) power plants designed to operate on imported coal and blending requirements of Domestic Coal-Based (DCB) power plants where imports are considered technically or operationally necessary.

Power Plants Retain Import Flexibility For Blending

Coal blending involves mixing different grades of coal, typically combining lower-cost, lower-grade domestic coal with higher-quality coal to improve fuel efficiency and optimise costs.

The ministry said coal imports are permitted under the Open General Licence (OGL) policy, allowing power plants to source coal according to their technical and operational requirements.

Government Pushes Domestic Coking Coal Availability

The government has also taken measures to increase domestic coking coal availability for the steel sector and reduce import dependence. 

These include the Coking Coal Mission and allowing coal linkages for coal washeries through the recently introduced CoalSETU window under Non-Regulated Sector linkage auctions.

(KNN Bureau)