Government aims to stop coal imports by FY26

The government projects coal production to reach 1.08 billion tonnes this year, reducing reliance on imports, which were 265 million tonnes in FY24, up from 245 million tonnes in FY23.

The Ministry of Coal aims to eliminate dry fuel imports by FY26, by operationalizing 20 new mines in the current fiscal year including 12 with a combined capacity of 58 million tonnes, during the first 100 days of the new government. 

As part of its 100-day agenda, the ministry plans to increase Coal India’s renewable energy capacity to 1 gigawatt (GW) and inaugurate a 660 megawatt (MW) unit at NLC India’s thermal power plant in Ghattampur, Uttar Pradesh. This initiative aligns with the broader goal of achieving 500 GW of non-fossil fuel energy by 2030, with state-run coal companies targeting 9 GW of renewable energy by then.

The government projects coal production to reach 1.08 billion tonnes this year, reducing reliance on imports, which were 265 million tonnes in FY24, up from 245 million tonnes in FY23.

The 10th round of coal block auctions, launching soon, will see 62 blocks up for bidding, in response to rising power demand projected to reach 260 GW this summer. Additionally, three new coking coal mines with capacities ranging from 5 to 6.5 million tonnes will open in Jharkhand this fiscal year. To further reduce coking coal imports, a new washery with a 2 million tonne capacity will be inaugurated at Bharat Coking Coal Ltd.

India currently relies heavily on imported coking coal due to high ash content in domestic coal, with approximately 70% of its needs met through imports.