India Achieves $5.43 Billion Forex Savings as Coal Imports Drop Due to Increased Local Production
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Synopsis
India's coal imports decreased by 8.4% during April-December, saving $5.43 billion in foreign exchange due to rising domestic coal production. The government is implementing initiatives to enhance self-sufficiency and reduce imports.
Key Takeaways
- Coal imports fell by 8.4% to 183.42 MT.
- Foreign exchange savings of approximately $5.43 billion.
- Non-regulated sector imports decreased by 12.01%.
- Coal production grew by 6.11% during the same period.
- Government initiatives focus on enhancing domestic coal output.
New Delhi, March 11 (NationPress) Coal imports to the country during the April-December timeframe of the current fiscal year saw a decline of 8.4 percent, totaling 183.42 million tonnes (MT) compared to 200.19 MT in the same period of the previous fiscal year. This reduction is attributed to the rise in domestic coal production, as noted in an official announcement made on Tuesday.
The drop in coal imports has resulted in an estimated foreign exchange savings of around $5.43 billion (Rs 42,315.7 crore) for the country, according to the Coal Ministry.
The non-regulated sector, which excludes the power sector, observed a more pronounced decrease, with imports falling by 12.01 percent year-on-year.
While coal-based power generation rose by 3.53 percent from April to December 2024 versus the previous year, imports for blending purposes by thermal power plants to enhance coal's calorific value dropped significantly by 29.8 percent.
This trend underscores India’s persistent efforts to decrease its reliance on imported coal and boost self-sufficiency in coal production, the statement emphasized.
The government has rolled out various initiatives, including Commercial Coal Mining and Mission Coking Coal, aimed at improving domestic coal production and curtailing imports. These initiatives have also resulted in a commendable 6.11 percent expansion in coal output during the April-December 2024 period compared to the same timeframe in FY 2023-24.
India's coal sector is crucial for its rapidly expanding economy, providing essential energy for key industries such as power generation, steel manufacturing, and cement production.
Nevertheless, the country faces significant hurdles in fulfilling its domestic coal requirements, particularly for coking coal and high-grade thermal coal, which are currently in short supply in reserves. Consequently, coal imports have been essential to meet the demands of critical sectors, particularly steel production.
The Ministry of Coal is actively implementing strategic actions to bolster domestic production and ensure a secure coal supply, in line with India's objectives to minimize coal imports and enhance energy security.
By prioritizing domestic coal output, the government aims to advance towards the Viksit Bharat vision, establishing a self-reliant and sustainable energy framework that supports long-term economic growth, the official statement concluded.
