Indias Coal Imports Decline by 5.83% in August 2026 Amid Rising Domestic Production
Indias coal imports fell to 104.57 million tons in August 2026, a 5.83% decrease, due to increased domestic production and improved supply chains.
New Delhi, November 1 (Daily Kiran) : India’s coal imports experienced a significant decline in August 2026, dropping by 5.83% to 104.57 million tons compared to 111.05 million tons in the same month last year. This decrease is attributed to the government’s efforts to boost domestic coal production and reduce reliance on imports, as reported by the Ministry of Coal.
The ministry noted that the total coal import volume decreased by 6.48 million tons, reflecting better availability of domestic coal and improvements in the supply chain. The power generation sector also saw a reduction in its dependence on imported coal, with imports falling by 6.39% to 21.32 million tons in August 2026, down from 22.77 million tons in August 2025.
The government has been emphasizing the need to reduce the blending of imported coal in domestic coal-based power plants. Notably, the demand for imported coal for blending in these plants plummeted by 35.23%, reaching just 3 million tons, compared to 4.64 million tons a year earlier.
Conversely, there was a slight increase in coal imports by power plants that primarily rely on imported coal. These plants saw an import rise of 0.98%, bringing their total to 18.31 million tons, up from 18.13 million tons the previous year.
The share of imported coal in the country’s overall coal consumption also decreased to 19.30%, down from 21.20% during the same period last year. This marks a reduction of 1.90 percentage points in the contribution of imported coal.
Additionally, imports of coking coal, essential for the steel industry, fell by 4.18% to 27.30 million tons in August 2026, down from 28.49 million tons the previous year. The ministry acknowledged that while domestic coking coal quality and availability are limited, imports remain necessary to meet the specific needs of the steel sector.
To enhance domestic production and supply, the ministry is implementing various measures, including increasing coal output, strengthening first-mile connectivity, and improving transport and evacuation infrastructure. Coordination with Coal India Limited (CIL), its subsidiaries, and the Ministry of Railways is also underway to ensure timely and sufficient coal supply to power plants.
The government stated that these efforts aim to bolster the reliability of domestic supply, reduce unnecessary imports, and ensure uninterrupted electricity production across the country.
