India Cuts Coal Imports 5.83% as Domestic Output Rises

India reduced its coal imports by 5.83 percent in August 2026, bringing the total to 104.57 million tonnes (MT). The figure stood at 111.05 MT a year earlier. The government says the fall reflects its push to scale up domestic coal production and lower import dependence.

The official statement issued on Sunday noted a reduction of 6.48 MT in overall imports. It pointed to stronger domestic coal availability and better supply chain performance as key factors behind the change.

Imports for power generation also declined. Power plants brought in 21.32 MT of coal in August 2026, down 6.39 percent from 22.77 MT in August 2025.

The steepest drop occurred in imports meant for blending at domestic coal-fired power plants. These fell 35.23 percent to 3 MT, from 4.64 MT a year earlier. The government continues to focus on reducing the need for blending imported coal at such plants.

Plants that are designed to use imported coal saw a slight rise in imports. Volumes climbed 0.98 percent to 18.31 MT, compared with 18.13 MT in the same month last year.

Imported coal now accounts for 19.30 percent of India's total coal consumption, down from 21.20 percent in the year-earlier period. The share has therefore narrowed by 1.90 percentage points.

Coking coal imports used by steelmakers fell 4.18 percent to 27.30 MT in August 2026, from 28.49 MT a year before. The ministry said imports are still essential to meet specific steel industry needs, as domestic coking coal supply is constrained by quality and availability.

The government is pursuing multiple measures to lift domestic output and supply. These include expanding coal production, improving first-mile connectivity, enhancing transport and evacuation infrastructure, and monitoring coal inventories at thermal power stations on an ongoing basis.

The Ministry of Coal is working with Coal India Limited, its subsidiaries and the Ministry of Railways to ensure power plants receive coal on time and in adequate quantities.

The government believes these steps will improve the reliability of domestic coal supply, reduce unnecessary imports and help maintain smooth power generation across the country.