India's thermal power coal imports edge up despite push for self-reliance

Thermal power plants reliant on imported coal increased their purchases to 18.31 million tonnes in August 2026, up slightly from 18.13 million tonnes a year earlier, according to data released by India's coal ministry. The marginal uptick comes despite sustained government initiatives aimed at lowering the power sector's vulnerability to international coal markets.

The broader picture shows more progress on the government's import reduction agenda. India's total coal imports fell 5.83 per cent to 104.57 million tonnes in August, compared with 111.05 million tonnes in the same month of the previous fiscal year. More significantly, coal purchases by the country's wider thermal power plant base—including both domestic and imported coal users—declined 6.39 per cent to 21.32 million tonnes from 22.77 million tonnes year-on-year.

The coal ministry attributed the overall decline to ramped-up domestic production, improved supply chain efficiency, and increased availability from India's own mines. These efforts form part of a comprehensive strategy to boost the country's energy security by reducing reliance on overseas coal, particularly for blending at domestic coal-fired power stations.

The divergent trends highlight the challenge of transitioning away from imported fuels while managing the operations of power plants specifically designed to run on overseas supplies. Officials said the contraction in power sector coal imports underscores progress toward India's broader energy independence goals.