Coal imports into India declined 5.83% year-on-year to 104.57 million tonnes (MT) in August 2026, compared with 111.05 MT in August 2025, according to the Ministry of Coal. Imports for blending at domestic coal-based power plants fell 35.23% during the month. The decline reflects efforts to improve domestic coal availability and reduce dependence on overseas supplies.
Coal Imports for Power Plants Record Decline
Coal imports by power plants fell 6.39% to 21.32 MT in August 2026, compared with 22.77 MT in the corresponding month last year.
Within this category, imports for blending at domestic coal-based power plants declined 35.23% to 3 MT, from 4.64 MT a year earlier. The reduction indicates lower dependence on imported coal for blending as domestic availability improves.
In contrast, imports by imported coal-based (ICB) power plants increased marginally by 0.98% to 18.31 MT, against 18.13 MT in August 2025. These plants primarily rely on imported coal to meet their operational requirements.
Imported Coal Share in Consumption Falls to 19.30%
Imported coal accounted for 19.30% of India’s total coal consumption in August 2026, compared with 21.20% in the corresponding month last year. This represents a decline of 1.90 percentage points.
Coking coal imports also declined 4.18% to 27.30 MT, against 28.49 MT in August 2025. Coking coal remains an important raw material for the steel industry. However, the quality and characteristics of domestic reserves limit their suitability for certain steelmaking requirements. As a result, the sector continues to depend on overseas supplies to meet its specific needs.
Government Focuses on Domestic Coal Availability
The Ministry of Coal is pursuing measures to increase domestic coal production and offtake while strengthening First Mile Connectivity (FMC) and transportation infrastructure. These initiatives aim to improve coal evacuation and ensure more reliable domestic supplies.
The ministry is also monitoring coal stocks at thermal power plants and coordinating with the Ministry of Railways, Coal India Limited (CIL) and its subsidiaries. The coordination aims to ensure timely coal supplies to power utilities and support uninterrupted electricity generation.
The decline in coal imports reflects progress in strengthening India’s domestic coal supply system. Continued improvements in production, transportation and evacuation infrastructure will remain important for reducing avoidable import dependence while meeting the requirements of the power and steel sectors.
