Coal imports by India's thermal power plants fell 27.45% on the year to 45.4 million tonnes in FY26, as rising domestic coal supplies reduced import reliance, the government informed Parliament on July 27.

Coal imports by imported coal-based power plants also fell 27.45% from a year ago to 2.88 million tonnes in April 2026, compared with 3.97 million tonnes in April 2025, according to a written reply to the Rajya Sabha by Minister of State for Coal and Mines Satish Chandra Dubey.

The government credited the decline to a series of policy steps aimed at boosting the availability of domestic coal for power generation.

These measures include raising the Annual Contracted Quantity (ACQ) to 100% of the normative requirement for eligible thermal plants and restoring domestic supplies that had previously been capped at 90% for non-coastal plants and 70% for coastal plants.

The government also noted that coal producers have been instructed since 2022 to meet the full power purchase agreement requirements of exiting linkage holders, regardless of trigger levels or ACQ limits, thereby curbing the need for imported fuel.

Under the Revised SHAKTI Policy 2025, imported coal-based plants have been allowed to source domestic coal, while holders of existing fuel supply agreements can secure additional volumes beyond contracted quantities after lifting full ACQ allocation.

The government said coal linkages under the CoalSETU platform are expected to improve the availability of washed coal and reduce imports.

To strengthen domestic coal logistics, the Ministry of Coal has unveiled an Integrated Coal Logistics Plan featuring 33 critical railway projects, expanded First Mile Connectivity (FMC) infrastructure, higher rail evacuation capacity and greater use of coastal shipping and inland waterways.

The government stated that FY30 plans of 139 FMC projects with a combined capacity of 1,319 million tonnes per annum, while coal public-sector undertakings are executing eight railway projects to improve coal evacuation from coal-bearing states.

The Indian government said that coal remains under the Open General License import policy, allowing consumers to buy from sources of their choice, but stressed that its priority is increasing domestic production and phasing out non-essential imports.

It added that the withdrawal of the GST compensation cess has made domestic coal more competitive against foreign supplies.

The government also said Coal India has kept prices largely stable, with the notified price of most coal grades rising by only 20 rupees/t ($0.21/t) over the past eight years. Coal India also carried out three short-term auction rounds and one long- and medium-term auction round under Window-II of the Revised SHAKTI Policy in 2026 through June, enabling power plants to secure coal at near-zero premiums for their short-, medium- and long-term needs.