Coal Imports by Thermal Power Plants Decline 27% in FY 2025-26: Centre
New Delhi, July 27 (TNT): Coal imports by thermal power plants in the country declined by around 27.4 per cent to 45.4 million tonnes (MT) in FY 2025-26, compared to 62.5 MT in the previous year, the Centre said on Monday.
The coal imported by power plants designed on imported coal also witnessed a decline, falling to 2.88 MT in April 2026 from 3.97 MT in April 2025, registering a reduction of around 27.45 per cent.
Union Minister of State for Coal and Mines Satish Chandra Dubey, in a written reply in the Rajya Sabha, said the government has taken several measures to reduce dependency on imported coal for the power sector.
The government has increased the Annual Contracted Quantity (ACQ) up to 100 per cent of the normative requirement in cases where ACQ was reduced to 90 per cent for non-coastal power plants or 70 per cent for coastal power plants. The move is aimed at increasing domestic coal availability and reducing import reliance.
The Centre has also decided that coal companies will supply coal to meet the full Power Purchase Agreement (PPA) requirements of existing linkage holders in the power sector, irrespective of trigger and ACQ levels, thereby reducing dependence on imported coal.
Under the Revised SHAKTI Policy, 2025, Imported Coal Based (ICB) plants have been permitted to secure coal, while existing Fuel Supply Agreement (FSA) holders can procure additional coal beyond ACQ after utilising their existing contracted quantity.
The government said coal linkages created under the CoalSETU window under Non-Regulated Sector linkage auctions would enhance the availability of washed coal and contribute to reducing imports.
The Ministry of Coal has also launched an Integrated Coal Logistics Plan in coordination with various ministries and stakeholders to improve coal transportation and evacuation.
The plan includes development of 33 critical railway projects, expansion of First Mile Connectivity (FMC) infrastructure, enhancement of rail evacuation capacity and promotion of multimodal transportation through rail, coastal shipping and inland waterways.
Under the plan, 139 FMC projects with a combined capacity of 1,319 MT are proposed to be established by FY 2029-30. Coal PSUs are also implementing eight railway projects to strengthen coal evacuation from coal-producing states.
The Union Minister said coal remains under the Open General License (OGL) category under the current import policy, allowing consumers to import coal from sources of their choice. However, the government’s focus remains on increasing domestic coal production and eliminating non-essential imports.
The removal of the GST compensation cess has also made domestic coal more competitive compared to imported coal, the Ministry said.
The Centre further stated that coal PSUs continue to provide coal at affordable prices while adhering to regulatory provisions. Over the past eight years, the notified prices of most coal grades of Coal India Limited (CIL) have increased only marginally by ₹20 per tonne.
CIL has also conducted three tranches of short-term auctions and one tranche of Long/Medium Term Auction under Window-II of the Revised SHAKTI Policy in 2026 up to June, providing sufficient coal quantities to power plants at near-zero premiums to meet their requirements.
TNT KS
