Coal Import Decline (Geography)
Coal Import Decline (Geography)
Why In News:
India's coal imports declined by nearly 12.8% in April 2026. The Ministry of Coal attributes this fall to rising domestic coal production, supported by reforms in commercial coal mining.
Source: PIB, 2 July 2026, 'Coal imports decline nearly 13% in April 2026'; Ministry of Coal.
Why Does India Still Import Coal?
India is the world's second largest producer of coal, yet continues to import a segment of its requirement because most domestic reserves are non-coking (thermal) coal, used mainly for power generation.
Coking coal, required for blast-furnace steel making, is largely imported because India's coking coal reserves are limited in quantity and quality, primarily located in the Jharia and Raniganj coalfields.
Reforms Driving Higher Domestic Output
Commercial coal mining, opened to private players in 2020, ended the earlier public-sector monopoly and allowed market-linked pricing and sale of coal without end-use restrictions.
Coal India Limited (CIL), the India's largest coal mining company by output, continues to dominate production, supported by the SHAKTI policy for transparent coal linkage allocation to power plants.
Mission Coking Coal aims to raise domestic coking coal output specifically to reduce import dependence for the steel sector, a segment where import substitution has historically been difficult.
Key Facts for Prelims
India holds the fifth largest coal reserves in the world, concentrated in the Gondwana coal fields of the eastern and central states.
Coalbed methane (CBM) and coal gasification are being promoted as value-added, cleaner uses of India's coal reserves.
The Ministry of Coal and Coal Controller's Organisation are the key institutions regulating production, allocation and grading of coal in India.