The coal import share fell to 21 percent from 22.48 percent last year. Thermal plants reduce blending imports by 36.69 percent, while imported coal-based plants surge by 94.21 percent.
In a significant development, India has witnessed a notable shift in its coal consumption patterns, marked by a reduction in the share of coal imports compared to domestic production. According to recent data spanning from April 2023 to January 2024, the share of coal imports has declined to 21 percent, down from 22.48 percent recorded during the same period in the previous year.
A key aspect of this shift is the substantial decrease in the volume of coal imported for blending by thermal power plants. The import volume plummeted by 36.69 percent, totalling 19.36 million tons (MT) during the specified period, indicating a preference for domestic coal sources and a decreased reliance on imports for blending purposes.
However, amidst this decline, there has been a remarkable surge in coal imports by imported coal-based power plants, showing a staggering increase of 94.21 percent compared to the previous year’s corresponding period. This growth is attributed to a significant drop in import prices of coal, particularly from major suppliers like South Africa and Indonesia, where average prices decreased by approximately 54 percent and 38 percent, respectively, during the same timeframe.
The dynamics of coal pricing and consumption are further reflected in the substantial reduction of the auction premium received by Coal India Limited (CIL) over the notified price of coal. The auction premium has dwindled from 278 percent in the period from April 2022 to January 2023 to a mere 82 percent during the fiscal year 2023–24. This reduction underscores the abundant availability of coal in the market, with current coal stocks totaling 96 MT with coal companies.
Overall, these trends indicate a shifting landscape in India’s coal sector, with a decreasing reliance on imported coal for blending purposes and an increasing dependence on imports by specific coal-based power plants, driven primarily by favourable pricing dynamics in the global coal market.
Source: PIB Delhi
