New Delhi, Nov 1: India's coal imports declined by 5.83 per cent year-on-year in August 2026, falling to 104.57 million tonnes (MT) from 111.05 MT in the corresponding month last year, reflecting a gradual reduction in the country's dependence on imported coal.

According to data released by the Ministry of Coal, total imports declined by 6.48 MT during the month. Imports by power plants fell 6.39 per cent to 21.32 MT from 22.77 MT in August 2025. Imports for blending at domestic coal-based power plants witnessed a sharper decline of 35.23 per cent, falling from 4.64 MT to 3 MT.

However, imports by imported coal-based (ICB) power plants registered a marginal increase of 0.98 per cent to 18.31 MT. Coking coal imports, an important raw material for the steel industry, also declined by 4.18 per cent to 27.30 MT.

The share of imported coal in India's total coal consumption fell from 21.20 per cent in August 2025 to 19.30 per cent in August 2026, indicating reduced reliance on overseas supplies.

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Odisha's role in domestic coal supply

The declining import dependence assumes significance for Odisha, which holds India’s largest estimated coal reserves and remains one of its major coal-producers.

According to the Energy Statistics, Odisha 2025, published by the Directorate of Economics and Statistics, the state had estimated coal reserves of 99,204 million tonnes as of March 31, 2025, accounting for 25.47 per cent of India's total reserves.

Odisha's coal production increased to 242.62 MT in 2024-25 from 236.11 MT in the previous financial year. Of the total output, the public sector contributed 237.17 MT, while private-sector production stood at 5.45 MT.

The state's coal consumption also rose to 240.04 MT in 2024-25, up from 223.68 MT in 2023-24. Production exceeded consumption by around 2.58 MT during the year.

The industrial concentration of coal consumption is particularly significant, with Angul, Jagatsinghpur, Jharsuguda and Sundargarh together accounting for nearly 69 per cent of the state's total consumption in 2024-25.

The Ministry of Coal said it would continue to focus on increasing domestic production, strengthening First Mile Connectivity, improving coal evacuation infrastructure and monitoring stocks at thermal power plants. Coordination with the Railways and Coal India Limited is also aimed at ensuring timely supplies to power utilities.

While August figures indicate progress in reducing import dependence, continued improvements in domestic production, transportation and supply-chain infrastructure will remain crucial in sustaining the trend.