Coal-based power plants in India have sharply reduced their use of imported coal for blending, with imports falling from 23.9 million tonnes in 2023-24 to 6.8 million tonnes in 2025-26, a decline of 71.5 per cent over three years.
The trend has continued in the current financial year, with imports at 1.7 million tonnes during April-June 2026-27, Minister of State for Coal and Mines Satish Chandra Dubey informed the Rajya Sabha. The minister said India’s coal imports are now largely concentrated in areas where domestic availability remains limited, particularly coking coal for the steel industry and certain grades of high-quality thermal coal.
Imports Continue For Specific Operational Needs
Imported coal-based power plants continue to rely on overseas coal because they are designed to operate on imported fuel. Domestic coal-based plants may also use imported coal for blending where technically or operationally required. Coal blending involves combining different grades of coal to improve fuel efficiency and manage costs.
The government allows coal imports under the Open General Licence policy, enabling power plants to source coal based on their technical and operational requirements. The issue was raised in the Rajya Sabha against the backdrop of adequate domestic coal production and Coal India holding stockpiles of 122.46 million tonnes as of March 12, 2026.
The government is also taking steps to reduce dependence on imported coking coal for the steel sector. These include the Coking Coal Mission and allowing coal linkages for washeries through the CoalSETU window under non-regulated sector linkage auctions.