Why in News?
India’s coal imports declined by 12.95% in April 2026 compared to April 2025, reflecting the government’s continued push towards import substitution through higher domestic coal production and improved supply logistics.
Key Highlights
- Total coal imports fell from 24.27 MT (April 2025) to 21.13 MT (April 2026), a decline of 12.95%.
- Power sector coal imports declined by 24.89%, from 4.67 MT to 3.51 MT.
- Imported Coal-Based (ICB) power plants recorded the steepest fall in imports: 3.97 MT → 2.88 MT (down 27.45%).
- Domestic Coal-Based (DCB) plants importing coal for blending reduced imports by 11.26%: 0.71 MT → 0.63 MT.
- Import dependence (coal imports as a share of total consumption) declined 21.69% → 19.68%.
- Coking coal imports increased marginally by 1.34%: 5.93 MT → 6.01 MT, due to limited domestic coking coal availability for the steel industry.
Reasons for the Decline
- Increase in domestic coal production.
- Better coal linkage supplies to thermal power plants.
- Expansion of First Mile Connectivity (FMC) infrastructure.
- Improved coal evacuation through coordination with: Ministry of Railways, Coal India Limited (CIL), and Coal subsidiaries.
- Better monitoring of thermal power plant coal stocks.
UPSC Prelims Facts
- Coal India Limited (CIL) is the world’s largest coal-producing company.
- India has abundant non-coking (thermal) coal reserves but limited high-quality coking coal, making imports necessary for steel production.
- First Mile Connectivity (FMC) refers to mechanised systems for transporting coal from mines to railway loading points, improving evacuation efficiency and reducing environmental impact.
[2019] Consider the following statements:
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal product.
Which of the statements given above is/are correct?
[A] 1 only
[B] 2 and 3 only
[C] 3 only
[D] 1, 2 and 3