India plans to cut thermal coal imports by 30% this year to accelerate domestic supply substitution

Insiders say that, as the world’s second-largest importer of thermal coal, India wants to cut its imports of thermal coal for power plants by at least 30% this year, and has already asked power plants to test increasing the proportion of domestically sourced coal blended in. In 2025, Indian power plants imported nearly 50 million tons of coal from countries such as Indonesia, South Africa, and Russia. Sources say the government’s goal is to reduce that figure by at least 15 million tons this year. Despite India’s rapid, record-setting expansion of renewable energy capacity to meet its net-zero emissions target by 2070, three-quarters of the country’s electricity still depends on coal-fired power. As Coal India and private miners increase domestic coal production, India is looking to reduce reliance on overseas supply. The authorities’ target is to replace at least 20% of imported coal with domestic supply in most power plants, with the replacement share at some plants reaching as high as 30%.