India's coal imports drop 5.83% to 104.57 MT in August 2026
Synopsis
India's monthly coal import bill is shrinking — at 104.57 MT in August 2026, it is the lowest in over a year. With blending-coal imports crashing 35%, the government's domestic substitution push is showing measurable results, though the steel sector's coking coal dependence and ICB power plants keep a structural floor under import volumes.
Key Takeaways
India's coal imports fell 5.83% year-on-year to 104.57 MT in August 2026 , from 111.05 MT in August 2025.
Coal imports for blending at domestic power plants plunged 35.23% to 3 MT , the sharpest sectoral decline.
Imported coal's share of total consumption dropped to 19.30% from 21.20% — a fall of 1.90 percentage points .
Coking coal imports declined 4.18% to 27.30 MT , but structural constraints limit further reductions for the steel sector.
ICB power plant imports rose marginally by 0.98% to 18.31 MT , reflecting their design dependency on overseas coal.
The Ministry of Coal is coordinating with Coal India Limited and the Ministry of Railways to strengthen domestic supply chains.
India's coal imports fell 5.83 per cent year-on-year to 104.57 million tonnes (MT) in August 2026, down from 111.05 MT in the same month a year earlier, as the country accelerates efforts to boost domestic production and reduce reliance on overseas supplies, according to the Ministry of Coal. The 6.48 MT decline reflects improved domestic coal availability and targeted supply-chain interventions.
Power Sector Imports
Imports by power plants dropped 6.39 per cent to 21.32 MT in August 2026, compared with 22.77 MT in August 2025. The sharpest fall was recorded in coal imports used for blending at domestic coal-based power plants, which plunged 35.23 per cent to 3 MT from 4.64 MT a year earlier — a sign that domestic supply substitution is gaining real traction in the blending segment.
However, imports by imported coal-based (ICB) power plants — facilities structurally designed to run on overseas coal — edged up marginally by 0.98 per cent to 18.31 MT, from 18.13 MT in the corresponding period. This modest uptick underscores the limited scope for substitution at plants whose entire design is built around imported fuel.
India's Import Dependency Falls
The share of imported coal in India's total coal consumption declined to 19.30 per cent in August 2026, down from 21.20 per cent in August 2025 — a reduction of 1.90 percentage points. This marks a meaningful shift in the country's energy import profile, even if absolute volumes remain substantial at over 100 MT per month.
Notably, this trend aligns with a broader government push under Coal India Limited (CIL) and its subsidiaries to ramp up domestic production and First Mile Connectivity (FMC) infrastructure, which moves coal from pit-head to rail loading points more efficiently.
Coking Coal: Steel Sector Constraints Remain
Coking coal imports — the primary raw material for the steel industry — fell 4.18 per cent to 27.30 MT in August 2026, compared with 28.49 MT a year ago. The Ministry of Coal acknowledged that domestic availability of coking coal remains structurally constrained, citing the quality and characteristics of indigenous reserves. Imports in this segment are therefore unlikely to see a sharp reduction in the near term, as steel manufacturers require specific grades that domestic mines cannot yet reliably supply.
Government Measures and Road Ahead
The Ministry of Coal confirmed it is pursuing a multi-pronged strategy: increasing domestic coal production and offtake, strengthening First Mile Connectivity, improving transportation and evacuation infrastructure, and monitoring coal stocks at thermal power plants in real time. The ministry is also coordinating with the Ministry of Railways and Coal India Limited to ensure timely coal supplies to power utilities.
These measures, the ministry said, are designed to improve the reliability of domestic supplies, reduce avoidable import dependence, and ensure uninterrupted power generation nationwide. With the blending-coal import segment already showing a steep decline, the next benchmark will be whether overall monthly import volumes can be pushed consistently below 100 MT in coming months.
Point of View
But the headline number obscures a more nuanced picture. The 35% crash in blending-coal imports is genuinely significant — it suggests domestic supply is finally substituting for the most discretionary segment of power-sector imports. Yet the structural floors remain: ICB plants cannot switch fuels, and the steel industry's coking coal needs are a function of reserve quality, not policy will. India is trimming the edges of import dependence, not dismantling it. The real test of the ministry's strategy will come when domestic output is stress-tested by peak summer demand — the months when import volumes historically spike back up.
NationPress
1 Nov 2026
Frequently Asked Questions
By how much did India's coal imports fall in August 2026?
India's coal imports fell 5.83% year-on-year to 104.57 MT in August 2026, compared with 111.05 MT in August 2025, a decline of 6.48 MT, according to the Ministry of Coal.
Which category of coal imports saw the sharpest decline?
Blending coal imports at domestic coal-based power plants recorded the steepest fall, dropping 35.23% to 3 MT in August 2026 from 4.64 MT in August 2025. This reflects improved domestic coal availability in the power sector.
Why did imported coal-based power plant imports increase slightly?
Imports by imported coal-based (ICB) power plants rose marginally by 0.98% to 18.31 MT, as these facilities are structurally designed to operate on imported coal and cannot easily substitute domestic supplies.
What is the status of coking coal imports for the steel industry?
Coking coal imports fell 4.18% to 27.30 MT in August 2026. The Ministry of Coal noted that domestic coking coal availability remains constrained due to the quality of indigenous reserves, making continued imports necessary for the steel sector.
What steps is the government taking to reduce coal import dependence?
The Ministry of Coal is increasing domestic production, strengthening First Mile Connectivity infrastructure, improving rail transportation and evacuation logistics, and coordinating with Coal India Limited and the Ministry of Railways to ensure reliable domestic supplies to power utilities.
