Coal Imports Plunge by Nearly 13% as India Accelerates Domestic Substitution Push

Coal Imports Plunge by Nearly 13% as India Accelerates Domestic Substitution Push​

India's commitment to import substitution is yielding significant results in the thermal power sector, as coal imports registered a marked decline in April 2026. Total coal imports fell by approximately 12.95%, decreasing from 24.27 MT in April 2025 to 21.13 MT in April 2026, representing a reduction of 3.14 MT.

This sustained decline is a direct outcome of the Ministry of Coal's focused strategy to ramp up domestic production and strengthen First Mile Connectivity for power utilities. The reduced reliance on imported fuel showcases steady progress toward achieving greater coal self-sufficiency within crucial energy consumers.

Power Sector Sees Massive Reduction in Imported Coal​

The power sector registered the most substantial gains, with coal imports specifically for thermal power plants declining by 24.89%. These vital imports fell from 4.67 MT in April 2025 to 3.51 MT in April 2026.

This sharp reduction is attributed to improved domestic linkage supplies and the decreased necessity of using imported coal for blending mandates. Furthermore, the category tracking plants designed to run on Imported Coal-Based (ICB) also saw a steep decline of 27.45%, falling from 3.97 MT to 2.88 MT.

Import Dependence Narrows Amid Supply Chain Strength​

The narrowing of import dependence highlights the effectiveness of integrated supply management by government agencies. Coal imports as a share of total coal consumption decreased by over two percentage points, moving from 21.69% in April 2025 to 19.68% in April 2026.

The imports for domestic plants that use blended coal (DCB) declined by 11.26%, dropping from 0.71 MT to 0.63 MT. This decrease underscores the successful efforts undertaken by the Ministry of Coal to ensure assured domestic supply and enhance stock levels at thermal power plants nationwide.

Coking Coal Imports Remain Steady for Steel Sector Growth​

While overall import categories are trending down, imports of coking coal remain relatively stable. Coking coal, which primarily serves the steel sector given limited domestic reserves, showed a marginal increase of 1.34%. These imports rose from 5.93 MT to 6.01 MT in April 2026.

This stability is consistent with the continued growth observed in domestic steel production requirements and reflects that this particular category is driven by specific resource needs rather than supply gaps. The Ministry of Coal remains committed to strengthening domestic coal production infrastructure to sustain reduced import dependency moving forward.