While coal imports for blending declined due to government initiatives to boost domestic supply, imports by plants designed for foreign coal surged by 104% to 41.81 MT in FY24 compared to FY23. The coal ministry aims to eliminate imports of substitutable coal by FY26 and encourages imported coal-based power plants to invest in adapting to domestic fuel. 

In fiscal year 2023-24, coal imports for blending purposes in India saw a significant decrease of 32% to 23.92 million tonnes (MT) compared to the previous fiscal year’s 35.10 MT. This decline is attributed to the rise in domestic coal production, reaching 997.4 MT, marking an 11.67% increase from the preceding year. Central sector power plants led in coal imports for blending, accounting for 48%, followed by independent power plants at 33%, and state sector plants at 18.8%. The installed capacity of domestic coal-based plants is approximately 193 gigawatts (GW).

Domestic power plants blend imported coal with domestic coal to enhance its calorific value. Amid projections of high power demand, the power ministry has mandated a 6% imported blending at coal-based power plants until June to ensure stability in supply. However, the total coal stock in the country’s thermal power plants stands at 47.2 MT, covering 67% of the normative stock requirement of 70.56 MT. Notably, 28 plants are facing critical stock levels.

While the imports for blending declined due to government initiatives to boost domestic supply, imports by plants designed for foreign coal surged by 104% to 41.81 MT in FY24 compared to FY23. The coal ministry aims to eliminate imports of substitutable coal by FY26 and encourages imported coal-based power plants to invest in adapting to domestic fuel. This includes making changes in technologies and design to accommodate the use of domestic coal over the next two years, as emphasized by Union coal minister Pralhad Joshi.