How Did India Save Rs 60,681 Crore in Forex by Reducing Coal Imports in 2024-25?
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Synopsis
In a significant move, India has cut its coal imports, saving over Rs 60,681 crore in foreign currency. This strategic decision, highlighted by Minister G. Kishan Reddy, aims to boost domestic coal production while establishing a robust infrastructure for the future. Learn how these actions reflect India's commitment to energy independence and economic stability.
Key Takeaways
- India saved Rs 60,681 crore through reduced coal imports.
- Annual coal imports decreased by 20.91 million tonnes.
- Target set for 1.5 billion tonnes of domestic coal production by FY 2029-30.
- Government initiatives to enhance coal production and infrastructure.
- IMC formed to promote domestic coal usage.
New Delhi, July 21 (NationPress) India has successfully decreased its yearly coal imports by approximately 20.91 million tonnes, allowing the nation to conserve foreign exchange amounting to Rs 60,681.67 crore during the fiscal year 2024-2025 compared to 2023-24, as reported by Minister of Coal and Mines G. Kishan Reddy in Parliament on Monday.
In a formal response to an inquiry in the Rajya Sabha, the minister indicated that the total coal imported into India for the year 2024-25 reached 243.62 million tonnes (MT), in contrast to 264.53 MT in 2023-24.
He emphasized that the majority of India's coal needs are satisfied through local production. The Ministry of Coal has established an ambitious target for domestic coal output, aiming for approximately 1.5 billion tonnes by FY 2029-30. The government's objective is to boost domestic coal production while minimizing unnecessary imports.
Moreover, the Ministry initiated the Coal Logistic Plan and Policy in February 2024 to enhance infrastructure for efficient coal evacuation, keeping in mind the projected increase in coal production by FY 2029-30.
To lessen reliance on imported coal and foster local production, the government has facilitated the allocation of coal blocks, promoted private sector involvement, and streamlined the approval processes for coal mining initiatives. Furthermore, there is a significant push to enhance coal production by state-owned companies through the adoption of modern technologies, including First Mile Connectivity (FMC) and digitalization, as explained by the minister.
Additionally, to stimulate the use of domestic coal, an Inter-Ministerial Committee (IMC) was formed for coal import substitution. The IMC has, through its meetings, pinpointed Import Coal Based (ICB) plants where domestic coal supply may be explored, with these plants specifying their coal needs and preferred subsidiaries of CIL.
Furthermore, the government has been concentrating on enhancing coal evacuation infrastructure. Following directives from the Government of India, coal companies are improving coal transportation and supply chain efficiency by constructing new railway lines and implementing First Mile Connectivity (FMC) projects incrementally.
He also noted that under the government’s Revised Shakti Policy, 2025, the Imported Coal Based (ICB) plants are authorized to secure coal under Window-II of the policy, which has contributed to increased domestic coal consumption.
Point of View
This strategic reduction in coal imports signifies a pivotal shift towards energy independence and economic prudence. The government's proactive measures to enhance domestic production not only aim to save foreign exchange but also bolster local industries. Such initiatives reflect a commitment to sustainable development and national self-sufficiency, positioning India favorably on the global energy stage.
NationPress
21/07/2025
Frequently Asked Questions
What was the amount saved by India through reduced coal imports?
India saved approximately Rs 60,681 crore in foreign exchange by cutting coal imports during FY 2024-25.
How much did India reduce its coal imports by?
India reduced its coal imports by around 20.91 million tonnes compared to the previous fiscal year.
What is the domestic coal production target set by the Ministry of Coal?
The Ministry of Coal aims for a domestic coal production target of about 1.5 billion tonnes by FY 2029-30.
What initiatives is the government taking to enhance coal production?
The government is facilitating coal block allocations, promoting private sector involvement, and adopting modern technologies to increase coal production.
What is the purpose of the Inter-Ministerial Committee (IMC)?
The IMC was established to encourage the consumption of domestic coal and identify Import Coal Based (ICB) plants that could use domestic supplies.
