Coal imports declined from 23% to 21% between April 2023-Jan 2024 : Govt

Declining coal import: The share of coal imports within the country's overall coal consumption has declined during the period spanning April 2023 to January 2024, from 22.48 per cent to 21 per cent. This shift is particularly highlighted by a significant 36.69 per cent reduction in the volume of coal imported for blending purposes by thermal power plants. The decline, amounted to 19.36 million tons (MT) during the specified period in 2023-24.

Surge in Imports Amid Declining Prices

However, amidst this reduction, there's a contrasting surge in coal imports observed specifically by imported coal-based power plants. From April 2023 to January 2024, imports by such plants skyrocketed by 94.21 per cent compared to the preceding year. This surge can be attributed to a marked decline in coal import prices during the same period.

India predominantly sources thermal coal from key markets like South Africa and Indonesia. Average prices from these regions witnessed a significant downturn, plummeting by approximately 54 per cent and 38 per cent respectively, compared to the corresponding period in the prior year. 

Further underlining this evolving landscape is the substantial reduction in auction premiums received by Coal India Limited (CIL) over the notified coal price. The premium dwindled from 278 per cent in the period spanning April 2022 to January 2023, to a modest 82 per cent during the same period in the fiscal year 2023-24.