Coal imports by India’s power sector decreased by 40% to 22.73 million tonnes during April 2021-January 2022

During April 2021-January 2022, coal imports by the power sector decreased by over 41% to the level of 22.73 million tonnes (MT) as compared to 39.01 MT during the corresponding period of previous year. Coal imports by the power sector declined from 69.22 MT in 2019-20 to 45.47 MT in 2020-21,Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi said in a written reply to Lok Sabha.

Due to increased availability of coal on account of policy measures taken to increase domestic coal production, total coal imports into India declined by over 9%, from 248.54 million tonnes (MT) in 2019-20 to 215.25 MT in 2020-21. Further, during April 2021-January 2022, coal import has further decreased to the level of 173.32 MT as compared to 180.56 MT during the corresponding period of previous year.

The share of coal supply by CIL, which was around 60.8% of total consumption of coal in 2019-20, increased to 63.3% in 2020-21 and further to 64.3% in 2021-22 (April- January 2022).

The Annual Contracted Quantity (ACQ) of power plants has been increased upto 100% of the normative requirement, in the cases where the ACQ was reduced to 90% of normative requirement (non-coastal) or where the ACQ was reduced to 70% of normative requirement (coastal power plants). The increase in ACQ would ensure supply of more domestic coal to the power plants.

In addition to the above, some other measures like Introduction of Facility of Usance LC (Letter of Credit) payment mechanism to help the consumer avail credit facility from bank and Special Spot auction scheme for coal importers including the traders, have been introduced to help curtail the imports of coal.

Coal imported by coal based power plants during the last five years and current year

  YearImported coal based power plants Million TonnesBlended coal based power plants Million TonnesTotal coal import by Power Plants Million Tonnes
2021-22 Upto Jan.2216.086.6522.73

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