India’s thermal coal imports fell for the fifth consecutive month on an annual basis in January 2025 due to rising domestic production of the critical fuel coupled with lower electricity demand during the month.
According to global real-time data and analytics provider Kpler, India’s thermal coal imports, largely consumed by the Power sector, fell by 12.60 per cent Y-o-Y to 11.65 million tonnes (mt). However, the shipments were higher by 3 per cent on a monthly basis.
Alexis Ellender, Lead Major Dry Bulks Analyst at Kpler, told businessline “At 11.65 mt, January 2025 thermal coal imports were below the five-year average of 11.85 mt.”
According to the Coal Ministry, imports declined by 5.35 per cent Y-o-Y during April-November 2024, saving around $3.91 billion, or roughly ₹30,007.26 crore. Coal imports for domestic power plant blending fell by 23.56 per cent Y-o-Y.
Growing production
India’s overall coal production increased by 1.78 per cent Y-o-Y to 621.15 mt during the April-January period in FY25, while despatch to the Power sector rose 4.40 per cent Y-o-Y to 694.73 mt.
India’s coal production grew at a compound annual growth rate (CAGR) of 5.64 per cent in the last decade ending FY24.
“India’s ability to grow its domestic coal production capability is reducing utilities’ need for imports for blending. This leaves imported-based coal plants as the only consumer of imported supply,” Ellender explained.
India’s coal burn was below 2024 levels in January, which was the main driver of decline in Indonesian shipments., he added.
“Coal stocks at domestic coal-based power plants, including imported coal for blending purposes, rose to a multi-year high of more than 47 mt in the final week of January. As a consequence, we expect imports over February and March to be lower Y-o-Y,” he projected.
However, stocks at import-consuming power plants have eased lower, which will prevent a collapse in imports, Ellender pointed out.
On the consumption side, the thermal power plants (TPPs) received 606.3 mt of domestic coal in April-January this fiscal year, an annual growth of 3.6 per cent. Imported supplies stood at 48.3 mt, a growth of 3.7 per cent Y-o-Y.
The total consumption by TPPs during the first nine months of FY25 rose by 4 per cent Y-o-Y to 658.8 mt.