India Reduces Coal Imports by 10%, but Sustainability Remains a Concern
- Muhammad Ahmad
- Nov 20, 2024
- 2 min read
Domestic coal production rises, but reliance on coal persists, challenging green energy goals
Coal imports dropped, but increased domestic mining raises sustainability concerns
Coal imports for power and industry declined by nearly 10% from April-September 2024 due to a surge in domestic coal production.
This shift saved ₹13,628.73 crore but reflects continued reliance on coal over cleaner alternatives.
Imports of non-substitutable coal for steel and imported coal plants increased slightly.
India recorded a notable reduction in coal imports for domestic coal-based thermal power plants and non-regulated industrial sectors during April-September 2024, with imports dropping by 8.59% and 9.83%, respectively. These declines align with the Ministry of Coal’s strategy to ramp up domestic production, reaching over 63.28 million tons (MT) in these sectors.
This development, while economically beneficial, raises questions about India’s commitment to sustainability. The Ministry of Coal is focused on ensuring energy security and cost efficiency by reducing import dependency, but the strategy prioritizes coal, a significant contributor to greenhouse gas emissions, over accelerating renewable energy adoption.
Technical Focus
Coal dominates India's energy mix, accounting for over 70% of electricity generation. Domestic production is projected to surpass 1 billion tons in 2024, making India one of the world's top coal producers. While the government targets 500 GW of renewable energy capacity by 2030, coal remains central to bridging the energy gap, posing challenges to meeting global climate commitments.
While total coal imports marginally increased by 1.36% to 129.52 MT due to non-substitutable demand for coking coal (critical for steel production) and imported coal power plants, the value of imported coal fell significantly, saving the nation ₹13,628.73 crore. These savings underscore the financial benefits of increased reliance on domestic production, even as environmental concerns persist.
A Ministry of Coal representative highlighted: “Our goal is to strengthen domestic supply chains, ensuring affordable energy for industries while reducing the import burden.”
Despite these economic advantages, the increased reliance on domestic coal extraction highlights India’s ongoing challenge: balancing economic priorities with sustainability goals. As domestic coal production ramps up, the environmental cost of this dependence must be reckoned with, particularly as the nation aspires to lead in global climate action.