Story 4 of 11 · 2 Nov
GS3 · Economy · Coal and Energy Security

India’s coal imports fall 5.8% as home output rises

In 30 seconds

India’s coal imports fell 5.83% in August from a year ago, the Coal Ministry said, as more coal is mined at home. But steel makers still buy most of their coking coal abroad. Read it to revise Indian coal quality, import dependence and energy security.

Fact File

Fall in imports
5.83%
Total imports
104.57 million tonnes (111.05 earlier)
Imported share of use
19.3% (from 21.2%)
Coking coal imported
About 95% of need
An open-cast coal mine in India
In the news

Coal imports: what do the numbers show?

Coal still runs most of India’s power plants and steel mills. Every tonne mined at home saves foreign exchange, but steel still needs coal India lacks.

  • India’s coal imports fell 5.83% in August from a year ago, the Coal Ministry said.
  • Total: 104.57 million tonnes against 111.05 million tonnes a year ago (official figure).
  • Power sector imports fell 6.39% to 21.32 million tonnes.
  • Imports for blending at plants built for Indian coal fell 35.23% to 3 million tonnes.
  • Imported coal fell to 19.3% of use from 21.2%.
  • Coking coal imports fell 4.18% to 27.3 million tonnes; India imports about 95% of its need.
Back Story

Why does India import coal?

India has large coal reserves, mostly in Jharkhand, Odisha, Chhattisgarh and West Bengal, but most of it is non-coking coal used in power plants.

Indian coal has high ash and low sulphur. Its low heat value means some plants blend in imported coal.

Coking coal is needed to make steel in blast furnaces. India has little good-quality coking coal, so it imports most of it.

Commercial coal mining was opened to private companies in 2020 to raise domestic output.

Imports

Where did imports fall?

SegmentImportsChange
Power sector21.32 million tonnes-6.39%
Blending3 million tonnes-35.23%
Coking coal27.3 million tonnes-4.18%
Rulebook

Which laws and Articles apply?

  • Coal Mines (Nationalisation) Act, 1973.
  • Coal Mines (Special Provisions) Act, 2015: auctions.
  • Mines and Minerals (Development and Regulation) Act, 1957.
  • Commercial coal mining opened in 2020.
Why examiners care

Why does falling coal imports matter?

AngleWhat to note
Energy securityLess import dependence.
ForexLower import bill.
SteelCoking coal gap remains.
ClimateCoal use must be balanced with net zero by 2070.
Fault Lines

What are the problems with falling coal imports?

  • Coking coal remains about 95% imported.
  • High-ash coal causes more pollution.
  • More mining raises land and forest concerns.
  • Coal use clashes with climate goals.
Road Ahead

What should be done next on falling coal imports?

  • Wash and upgrade domestic coking coal.
  • Push coal gasification.
  • Diversify import sources.
  • Keep the shift to clean energy on track.
Exam Radar

What can Prelims ask on falling coal imports?

Prelims probability: Expect a question on Indian coal: high ash, low sulphur; the steel industry imports coking coal.

  • Indian coal: high ash, low sulphur.
  • Coking coal is used in steel making; mostly imported.
  • Most coal reserves: Jharkhand, Odisha, Chhattisgarh.
  • Commercial coal mining opened in 2020.
  • Imported coal share fell to 19.3% of use.
Answer Lab

How to write about falling coal imports in Mains

Practice question (15 marks, 250 words): Reducing coal imports is important, but so is the energy transition. Discuss India’s coal strategy.

  • Intro: imports down 5.83%.
  • Why imports: quality, coking coal.
  • Gains: forex, energy security.
  • Concerns: pollution, climate, coking gap.
  • Conclusion: balanced energy mix.

Ready lines for your answer

GS-III Coal and energy security

  1. Energy security begins at home.
  2. Coal today, clean energy tomorrow.
Quotable data point

Imported coal fell to 19.3% of use from 21.2%.

Photo: Harshaddu, CC BY 4.0, via Wikimedia Commons

Exam angle

UPSC

Prelims: coal types and quality. · Mains GS-III: energy security and mineral resources.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Consider the following statements: Which of the statements given above are correct?

Answer (d) & explanation

Statements 1 and 3 are correct. Indian coal is high in ash but low in sulphur, which is why steel makers import most of their low-ash coking coal.

Practice · UPSC

According to the Coal Ministry, the share of imported coal in India's total coal use in August 2026 fell to about:

Answer (a) & explanation

The share of imported coal fell to 19.3% from 21.2% a year ago. Total imports fell 5.83% to 104.57 million tonnes.

Quick questions

Questions students ask about this

How much did coal imports fall?

By 5.83% in August from a year ago, as per the Coal Ministry.

Why does India import coking coal?

India has little good-quality coking coal, which steel makers need; about 95% is imported.

What are the features of Indian coal?

High ash and low sulphur content.

What share of coal use is now imported?

19.3%, down from 21.2%.