India aims to reduce its thermal coal imports by around 30% this year through increased utilisation of domestically mined fuel, as government and industry work on blending trials and boosting domestic production to lower foreign dependency.
India is pressing its power sector to sharply reduce reliance on imported thermal coal this year, seeking to curb purchases by about 30% through greater use of domestically mined fuel, government and industry sources say.
According to reporting by Reuters, New Delhi has set an objective to lower power-plant imports by roughly 15 million tonnes from the near‑50 million tonnes used in 2025, directing operators of units designed for foreign coals to trial higher blends with Coal India and private mine output. The initiative targets plants built around 17 gigawatts of import‑dependent capacity, with officials seeking at least a 20% substitution at most sites and up to 30% where feasible.
The push builds on a recent trend of shrinking import volumes. Government data released by the coal ministry indicate a multi‑year decline in inbound shipments: imports fell 7.9% in 2024–25 to about 243.6 million tonnes, saving the economy billions of dollars in foreign exchange, and blending‑specific imports to power plants have collapsed sharply in recent fiscal periods. Industry reporting and ministry bulletins show coal brought in for blending plunged by more than half in some year‑on‑year comparisons, producing reported foreign‑exchange savings in the tens of thousands of crores of rupees.
Coal India has played a central role in expanding domestic supply, recording a record output in the year to March 2025 and carrying large inventories at the end of the calendar year. To reduce stockpiles, Coal India has eased rules to permit exports to neighbouring markets such as Bangladesh, Bhutan and Sri Lanka. The company has also accelerated deployment of mechanised mining techniques and standardised heavy equipment, steps the ministry credits with underpinning higher production and the observed import reductions.
Despite those gains, technical and economic frictions limit how quickly plants can switch to lower‑grade indigenous coals. Power‑sector executives have warned that many boilers are optimised for higher‑calorific imported coal; burning domestic varieties at the intended share would often require expensive retrofits and recalibration that may need government support to be viable. Government sources involved in the blending trials say authorities have promised improved domestic coal quality for the pilots, but plant operators remain cautious.
Market participants expect the composition of imports to shift over time. Coal traders and analysts note that as newer thermal capacity is commissioned closer to inland mines, the power sector’s share of imported mid‑to‑low calorific coal should shrink, with non‑power industries such as cement and sponge iron continuing to demand specific coal grades. Rajiv Ramnarayan, chief executive of coal trader Equentia Natural Resources, told Reuters that import volumes for thermal power are likely to slow gradually even as India expands its coal‑fired capacity footprint through the 2034–35 period.
For policymakers, the timetable is pragmatic as well as strategic. Reducing imports eases pressure on foreign exchange and leverages recent domestic production gains, while the blending trials offer a near‑term route to lower import dependency without shutting plants or immediately altering broader generation planning. Yet the transition will require careful management: ensuring delivered domestic quality, calibrating blending levels to boiler capabilities, and, where necessary, designing targeted subsidies or technical assistance to avoid supply disruptions or cost shocks for generators.
The government has not publicly commented in detail on the plan beyond the accounts provided to the press. Industry tracking and ministry releases together suggest the country is seeking to rebalance coal flows , preserving energy security and fiscal resilience while maintaining coal’s central role in the generation mix as renewables scale up in line with longer‑term decarbonisation goals.
- https://www.thehindubusinessline.com/news/india-seeks-to-cut-power-sector-coal-imports-by-30-this-year-sources-say/article70683412.ece – Please view link – unable to able to access data
- https://www.business-standard.com/industry/news/india-aims-to-cut-thermal-coal-imports-by-30-for-power-plants-in-2026-126022700513_1.html – India plans to reduce thermal coal imports for power plants by at least 30% in 2026, encouraging increased blending with domestic coal. In 2025, power plants used nearly 50 million tonnes of imported coal from countries like Indonesia, South Africa, and Russia. The government aims to cut this by at least 15 million tonnes this year. Despite efforts to reduce reliance on imports, challenges persist due to the lower quality of domestic coal and the need for costly boiler recalibration in power plants. Coal India has been struggling with inventories of around 90 million tonnes as of December 31, after producing a record 781.1 million tonnes in the fiscal year to March 2025. To pare stockpiles, Coal India has opened up exports to Bangladesh, Bhutan, and Sri Lanka. India’s thermal coal imports, second only to China, fell 6.2% in 2025, the steepest drop since 2021, as power demand declined in milder weather. Despite plans to raise coal-fired capacity by 97 GW to 307 GW by 2034-2035, India’s thermal coal imports are expected to slow gradually as newer coal plants are likely to come up in areas closer to domestic sources. The share of imported thermal coal is expected to gradually shift from the power sector to non-power industries such as cement and sponge iron. Imports of lower and mid-calorific value coal are projected to decline gradually, offset by domestic supply, with imports limited to industries requiring specific qualities or higher-grade coal.
- https://energy.economictimes.indiatimes.com/news/coal/coal-imports-for-power-blending-plunge-54-in-aprdec/127907156 – Coal imports for blending in India’s power sector dropped by 54% in the first nine months of the current fiscal year compared to the previous year, offering significant relief to domestic coal-based power plants facing high input costs. Coal imports for blending decreased from 35.10 million tonnes in 2022-23 to 14.02 million tonnes in 2024-25. During the year 2025-26 (April-December), the coal imported for blending was 5.5 million tonnes, compared to 12 million tonnes during the same period last year, a 54% reduction. This decline has resulted in foreign exchange savings of around Rs 60,681.67 crore. Coal India Limited (CIL), which accounts for over 80% of domestic coal output, has adopted several measures to increase coal production, including the deployment of continuous miners, longwall and highwall mining technologies, and the standardisation of heavy earth-moving machinery in opencast mines. These efforts aim to enhance domestic coal production and reduce reliance on imports.
- https://www.millenniumpost.in/business/apr-dec-period-coal-import-for-power-sector-blending-plunges-54-647002 – Coal imports for blending in India’s power sector dropped by 54% in the first nine months of the current fiscal year compared to the previous year, offering significant relief to domestic coal-based power plants facing high input costs. Coal imports for blending decreased from 35.10 million tonnes in 2022-23 to 14.02 million tonnes in 2024-25. During the year 2025-26 (April-December), the coal imported for blending was 5.5 million tonnes, compared to 12 million tonnes during the same period last year, a 54% reduction. This decline has resulted in foreign exchange savings of around Rs 60,681.67 crore. Coal India Limited (CIL), which accounts for over 80% of domestic coal output, has adopted several measures to increase coal production, including the deployment of continuous miners, longwall and highwall mining technologies, and the standardisation of heavy earth-moving machinery in opencast mines. These efforts aim to enhance domestic coal production and reduce reliance on imports.
- https://www.coal.nic.in/sites/default/files/2025-05/PIB2128433.pdf – India’s coal imports during April 2024 to February 2025 fell by 9.2%, totaling 220.3 million tonnes, compared to 242.6 million tonnes in the same period of the previous fiscal year. This reduction resulted in foreign exchange savings of approximately $6.93 billion. Notably, the Non-Regulated Sector, excluding the power sector, experienced a more significant decline, with imports dropping by 15.3% year-on-year. Although coal-based power generation grew by 2.87% from April 2024 to February 2025 compared to the previous year, imports for blending by thermal power plants sharply decreased by 38.8%. This highlights India’s ongoing efforts to reduce its dependence on imported coal and enhance self-sufficiency in coal production. The Government of India has implemented several initiatives, including Commercial Coal Mining and Mission Coking Coal, to enhance domestic coal production and reduce imports.
- https://www.coal.nic.in/sites/default/files/2025-01/PIB2092714.pdf – India’s coal imports decreased by 3.1% during April-October 2024, totaling 149.39 million tonnes compared to 154.17 million tonnes during the same period in the previous year. The Non-Regulated Sector (excluding power sector) saw a more substantial decline, with imports dropping by 8.8% year-on-year. Despite a 3.87% growth in coal-based power generation from April 2024 to October 2024 compared to the same period last year, coal imports for blending by thermal power plants saw a sharp decrease of 19.5%. This indicates a significant reduction in the reliance on imported coal for blending purposes in the power sector.
- https://www.coal.nic.in/sites/default/files/2026-01/Pib-120126.pdf – With increased domestic coal production, coal imports in India during 2024-25 fell by 7.9%, totaling 243.62 million tonnes, compared to 264.58 million tonnes in the same period of the previous fiscal year. This reduction resulted in foreign exchange savings of approximately $7.93 billion. The total import of coal during the current year, i.e., April 25 to October 2025, was 149.80 million tonnes against 149.23 million tonnes during the corresponding period of the last financial year. These figures highlight the ongoing efforts to reduce dependence on imported coal and enhance domestic coal production.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 27 February 2026, reporting on India’s plan to reduce thermal coal imports by 30% for power plants in 2026. Similar reports have appeared in reputable sources such as Business Standard ([business-standard.com](https://www.business-standard.com/industry/news/india-aims-to-cut-thermal-coal-imports-by-30-for-power-plants-in-2026-126022700513_1.html?utm_source=openai)) and The Economic Times ([economictimes.indiatimes.com](https://economictimes.indiatimes.com/industry/energy/power/india-seeks-to-cut-power-sector-coal-imports-by-30-this-year-sources-say/articleshow/128840914.cms?utm_source=openai)) on the same date, indicating freshness. However, the narrative closely mirrors these reports, suggesting potential recycling of content. ([business-standard.com](https://www.business-standard.com/industry/news/india-aims-to-cut-thermal-coal-imports-by-30-for-power-plants-in-2026-126022700513_1.html?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to ‘government and industry officials familiar with the plan’ and ‘one of the people involved in the testing’. These quotes cannot be independently verified, as no specific names or titles are provided. This lack of verifiability raises concerns about the authenticity and originality of the content. ([energy.economictimes.indiatimes.com](https://energy.economictimes.indiatimes.com/news/coal/india-seeks-to-cut-power-sector-coal-imports-by-30-this-year-sources-say/128844629?utm_source=openai))
Source reliability
Score:
6
Notes:
The article originates from The Hindu BusinessLine, a reputable Indian business newspaper. However, the content heavily relies on anonymous sources and closely mirrors reports from other reputable outlets published on the same date, suggesting potential recycling of content. ([business-standard.com](https://www.business-standard.com/industry/news/india-aims-to-cut-thermal-coal-imports-by-30-for-power-plants-in-2026-126022700513_1.html?utm_source=openai))
Plausibility check
Score:
7
Notes:
The plan to reduce thermal coal imports aligns with India’s ongoing efforts to enhance domestic coal production and reduce reliance on imports. However, the article lacks specific details on how the government plans to implement this reduction, raising questions about the feasibility and practicality of the proposed measures. ([energy.economictimes.indiatimes.com](https://energy.economictimes.indiatimes.com/news/coal/india-seeks-to-cut-power-sector-coal-imports-by-30-this-year-sources-say/128844629?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on India’s plan to reduce thermal coal imports by 30% for power plants in 2026. While the topic is timely and relevant, the content heavily relies on anonymous sources and closely mirrors reports from other reputable outlets published on the same date, suggesting potential recycling of content. Additionally, the lack of specific details on the implementation of the proposed measures raises questions about the feasibility and practicality of the plan. These factors contribute to a medium level of confidence in the article’s credibility.
