India Seeks To Cut Power Sector Coal Imports By 30 Per Cent
POWER & RENEWABLE ENERGY

India Seeks To Cut Power Sector Coal Imports By 30 Per Cent

India is seeking to cut power sector coal imports by 30 per cent this year, according to government sources, as it moves to bolster domestic supply and reduce external dependence. The move is intended to ease pressure on the trade deficit and improve energy security while meeting seasonal demand peaks. Officials have signalled a coordinated approach across ministries and state utilities to meet the target.

Measures under consideration include accelerating output from domestic coal producers, unlocking stranded captive coal blocks and improving rail freight capacity to deliver fuel to plants. Authorities are also assessing logistics bottlenecks at ports and switching discretionary demand where possible towards lower carbon alternatives and gas. The strategy will be phased to avoid disruption to grid stability and to preserve reserves for peak periods.

Market participants expect importers and overseas suppliers to adjust shipments as New Delhi seeks to reduce reliance on external coal, which could moderate spot market volatility. Analysts say lower imports may relieve some pressure on freight and port handling and could ease upward pressure on domestic coal prices, though much will depend on demand fluctuations and monsoon patterns. The government will monitor stock levels and may use price mechanisms and directed procurement to smooth supply.

Officials emphasise that the import reduction target is contingent on sustained domestic output increases and infrastructure upgrades, and that contingency plans are being readied to prevent shortfalls. The strategy is presented as part of a broader effort to balance energy security, affordability and climate commitments while supporting investment in renewables and storage. Implementation will be tracked through interagency coordination and regular reporting to ensure targets are met without compromising grid reliability.

India is seeking to cut power sector coal imports by 30 per cent this year, according to government sources, as it moves to bolster domestic supply and reduce external dependence. The move is intended to ease pressure on the trade deficit and improve energy security while meeting seasonal demand peaks. Officials have signalled a coordinated approach across ministries and state utilities to meet the target. Measures under consideration include accelerating output from domestic coal producers, unlocking stranded captive coal blocks and improving rail freight capacity to deliver fuel to plants. Authorities are also assessing logistics bottlenecks at ports and switching discretionary demand where possible towards lower carbon alternatives and gas. The strategy will be phased to avoid disruption to grid stability and to preserve reserves for peak periods. Market participants expect importers and overseas suppliers to adjust shipments as New Delhi seeks to reduce reliance on external coal, which could moderate spot market volatility. Analysts say lower imports may relieve some pressure on freight and port handling and could ease upward pressure on domestic coal prices, though much will depend on demand fluctuations and monsoon patterns. The government will monitor stock levels and may use price mechanisms and directed procurement to smooth supply. Officials emphasise that the import reduction target is contingent on sustained domestic output increases and infrastructure upgrades, and that contingency plans are being readied to prevent shortfalls. The strategy is presented as part of a broader effort to balance energy security, affordability and climate commitments while supporting investment in renewables and storage. Implementation will be tracked through interagency coordination and regular reporting to ensure targets are met without compromising grid reliability.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement