Coal Imports Fall Nearly 13% in April 2026 as India Boosts Domestic Coal Production

1. Overall Coal Imports Decline

· India's total coal imports fell by 12.95% in April 2026.

· Imports declined from 24.27 Million Tonnes (MT) in April 2025 to 21.13 MT in April 2026.

· The decline reflects the government's focus on import substitution and increased domestic coal availability.

2. Sharp Decline in Power Sector Imports

· Coal imports by power plants decreased by 24.89%.

· Imports reduced from 4.67 MT to 3.51 MT.

· This was due to improved domestic coal supplies and reduced dependence on imported coal for blending.

3. Imported Coal-Based (ICB) Plants

· Imports for ICB plants fell by 27.45%, the largest decline among all categories.

· Imports reduced from 3.97 MT to 2.88 MT.

4. Domestic Coal-Based (DCB) Plants

· Coal imports for blending by DCB plants declined by 11.26%.

· Imports fell from 0.71 MT to 0.63 MT.

· Indicates better availability of domestic coal.

5. Lower Import Dependence

· Coal imports as a share of total coal consumption decreased from 21.69% to 19.68%.

· This reflects India's growing self-reliance in coal supply.

6. Coking Coal Imports

· Coking coal imports increased slightly by 1.34%.

· Imports rose from 5.93 MT to 6.01 MT.

· Increase is due to continued demand from the steel sector, as India has limited domestic coking coal reserves.

7. Reasons for the Decline

· Increased domestic coal production.

· Improved First Mile Connectivity (FMC).

· Better monitoring of coal stocks at thermal power plants.

· Coordinated efforts by:

o Ministry of Coal

o Ministry of Railways

o Coal India Limited (CIL)

o CIL subsidiaries

8. Government's Future Focus

· Continue increasing domestic coal production.

· Strengthen coal evacuation infrastructure.

· Improve quality-based coal grading.

· Further reduce dependence on imported coal while ensuring adequate supply to power plants.

Key Takeaway

India's coal imports declined by nearly 13% in April 2026 due to higher domestic coal production, improved supply logistics, and effective import substitution measures. The power sector recorded the sharpest reduction in imports, highlighting progress toward greater energy security and self-reliance.

[ABS News Service/03.07.2026]

India's coal import basket has registered a significant decline in April 2026, with total coal imports falling to 21.13 Million Tonnes (MT) from 24.27 MT in April 2025 - a reduction of 3.14 MT (about 12.95%). The decline reflects the sustained impact of the Ministry of Coal's continuing push for import substitution and enhanced domestic coal availability, particularly for the power sector.

Key Highlights

· Power Sector Imports Down Sharply: Coal imports by power plants fell by 24.89%, from 4.67 MT in April 2025 to 3.51 MT in April 2026, driven by improved domestic linkage supplies and reduced dependence on imported coal for blending.

· Imported Coal-Based (ICB) Plants: Imports for plants designed to run on imported coal declined by 27.45%, from 3.97 MT to 2.88 MT, the steepest reduction among all categories tracked.

· Domestic Coal-Based (DCB) Plants for Blending Imported Coal: Coal imported for blending purposes by domestic plants fell by 11.26%, from 0.71 MT to 0.63 MT, underscoring the success of efforts to ramp up assured domestic supply and reduce reliance on the blending mandate.

· Overall Import Dependence Narrows: Coal imports as a share of total coal consumption fell from 21.69% in April 2025 to 19.68% in April 2026, a decline of over 2 percentage points.

· Coking Coal Imports Remain Steady: Coking coal imports, which cater primarily to the steel sector where domestic coking coal reserves remain limited, rose marginally by 1.34% (5.93 MT to 6.01 MT), consistent with continued growth in domestic steel production and reflecting that this category is driven by resource-specific requirements rather than availability gaps.

The consistent decline across ICB, DCB and overall import categories reflects the Ministry of Coal's sustained focus on ramping up domestic coal production and offtake, strengthening First Mile Connectivity, close monitoring of thermal power plant stock positions, and coordinated efforts with Ministry of Railways, Coal India Limited (CIL) and its subsidiaries to ensure assured supply to power utilities. These measures have progressively reduced the need for imported coal, including for blending purposes, while maintaining healthy stock levels at thermal power plants across the country. The Ministry of Coal remains committed to further strengthening domestic coal production, evacuation infrastructure and quality-based grading to sustain this trend of reduced import dependence in the coming months.