In an effort to decrease reliance on imported coal, India’s power ministry is actively investigating the possibility of allowing thermal power plants to blend domestic coal with imported fuel. Currently, 17 power-generation units with a total capacity of 17.97 gigawatts (GW) primarily utilize imported coal, especially during peak summer months when electricity demand surges. This initiative aims to bolster energy security while supporting domestic coal production.

Exploring Domestic Coal Integration

To assess the feasibility of this hybrid model, the ministry has commissioned a study through the Central Electricity Authority (CEA). Early indications suggest that while these plants can incorporate some domestic coal, they cannot fully transition to local sources without significant adjustments. The feasibility study will provide a clearer picture of the necessary capital investments and technical modifications required for this transition.

• Key Points of Consideration:
  • The integration of domestic coal may lead to reduced import dependence.
  • A technical assessment will evaluate the efficiency of blending fuels.
  • Financial implications will be analyzed as part of the feasibility study.

Coal Ministry’s Contribution

In a supportive move, the coal ministry has offered 10 million tonnes of high-grade coal to facilitate this study. This includes 4 million tonnes from Eastern Coalfield Ltd and 6 million tonnes from South Eastern Coalfield Ltd. Should the feasibility study yield positive results, the coal ministry may establish supply contracts for domestic coal, paving the way for a more sustainable energy mix.

Future of Coal in India

Former Coal Minister Pralhad Joshi previously indicated that by 2025, the government expects to phase out the need for imported coal entirely. He noted, “We are working on improving logistics and addressing various challenges in coal production, ensuring that imported coal will no longer be necessary.” This ambitious goal aligns with the government’s broader strategy to enhance domestic coal production.

Current Coal Production Trends

Despite challenges such as high ash content in local coal, which limits its use in imported-coal based plants, the country is witnessing a surge in domestic coal production. According to the Ministry of Coal, India’s coal production has seen a marked increase, surpassing 1 billion tonnes as of March 20, 2025—11 days earlier than in the previous fiscal year. The target for the current fiscal year is set at 1.08 billion tonnes, with projections to reach 1.13 billion tonnes by 2026.

• Import Statistics:
  • In the first nine months of FY25, India imported 183.42 million tonnes of coal, a decrease from 200.19 million tonnes during the same period the previous year.
  • Coking coal imports also decreased from 44.39 million tonnes to 42.75 million tonnes.

With the government’s commitment to reducing coal imports and increasing domestic production, the future of India’s energy landscape looks poised for transformation. As the energy sector evolves, initiatives like the integration of domestic coal are crucial for achieving sustainability and energy independence.