Page 72 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Key Achievements in Q1 FY 2026–27

The captive and commercial coal mining sector continued to demonstrate sustained growth during
Q1 FY 2026–27. Coal production from captive and commercial mines during the first quarter has
grown at a CAGR of approximately 10.7% between FY 2024–25 and FY 2026–27, reflecting a steady
upward trend in domestic coal production.

During the quarter, three coal mines Urtan, Dhirauli and Bikram commenced coal production.
Together, these mines have a combined Peak Rated Capacity (PRC) of 7.51 MTPA.

The operationalization of these mines is expected to enhance domestic coal availability, strengthen
supply security and support the growing requirements of the country’s energy and industrial sectors,
thereby contributing to economic growth.

The commencement of production from Urtan, a coking coal block, is particularly important as coking
coal is a key raw material for steel production. The mine is expected to strengthen the availability of
domestic coking coal for the steel sector and support efforts to reduce reliance on imports.

The Ministry of Coal attributes the sector’s progress to policy initiatives, regulatory facilitation and
sustained engagement with stakeholders. These efforts have enabled timely operational clearances,
improved capacity utilisation and strengthened coal production and dispatch from captive and
commercial coal mines.

19. Coal Imports Decline by Nearly 13% in April 2026, Reflecting Steady Progress Towards Import
Substitution

India's coal import basket has registered a significant decline in April 2026, with total coal imports
falling to 21.13 Million Tonnes (MT) from 24.27 MT in April 2025 - a reduction of 3.14 MT (about
12.95%). The decline reflects the sustained impact of the Ministry of Coal's continuing push for import
substitution and enhanced domestic coal availability, particularly for the power sector.

Key Highlights
• Power Sector Imports Down Sharply: Coal imports by power plants fell by 24.89%, from 4.67
MT in April 2025 to 3.51 MT in April 2026, driven by improved domestic linkage supplies and
reduced dependence on imported coal for blending.
• Imported Coal-Based (ICB) Plants: Imports for plants designed to run on imported coal
declined by 27.45%, from 3.97 MT to 2.88 MT, the steepest reduction among all categories
tracked.
• Domestic Coal-Based (DCB) Plants for Blending Imported Coal: Coal imported for blending
purposes by domestic plants fell by 11.26%, from 0.71 MT to 0.63 MT, underscoring the

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