Coal Imports by Thermal Power Plants Declined 27.4% in FY26: MoS

New Delhi, Jul 28 (KNN) Coal imports by thermal power plants declined 27.4percent to 45.4 million tonnes (MT) in FY 2025-26, compared with 62.5 MT in FY 2024-25, the government informed Parliament.

The information was provided by Union Minister of State for Coal and Mines  Satish Chandra Dubey in a written reply in the Rajya Sabha.

Coal imports by imported coal-based (ICB) power plants also declined 27.45percent, from 3.97 MT in April 2025 to 2.88 MT in April 2026, according to the reply.

The Minister said the government has increased the Annual Contracted Quantity (ACQ) to 100percent of the normative requirement for eligible power plants to improve domestic coal availability.

 It has also decided to supply domestic coal to meet the full Power Purchase Agreement (PPA) requirement of existing linkage holders in the power sector.

The reply stated that imported coal-based power plants and existing Fuel Supply Agreement (FSA) holders have been allowed to procure coal under the Revised SHAKTI Policy, 2025, subject to the prescribed conditions.

According to the Minister, the government has launched an Integrated Coal Logistics Plan, which includes 33 railway projects, expansion of First Mile Connectivity (FMC) infrastructure and promotion of multimodal coal transportation.

 A total of 139 FMC projects with a planned capacity of 1,319 MT are targeted by FY 2029-30, while coal PSUs are implementing eight railway projects to improve coal evacuation.

The reply said coal remains under the Open General Licence (OGL) import policy, allowing consumers to import coal based on commercial requirements. The government, however, continues to focus on increasing domestic coal production and reducing non-essential coal imports.

The Minister added that Coal India Limited (CIL) has increased the notified price of most coal grades by only Rs 20 per tonne over the past eight years. CIL also conducted three short-term auction tranches and one long/medium-term auction tranche under Window-II of the Revised SHAKTI Policy during 2026 (up to June).

(KNN Bureau)