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Energy Security and Import Substitution

India is the world's second-largest coal consumer and third-largest producer. Coal accounts for roughly 55% of India's electricity generation. Despite large domestic reserves (estimated at over 319 billion tonnes — the 4th largest globally), India has historically imported coal to meet peak demand and quality requirements. Reducing coal imports is a key plank of both energy security and the Aatmanirbhar Bharat initiative.

Key details
  • India imported approximately 248 MT of coal in FY 2023-24, costing over $25 billion in foreign exchange.
  • Non-coking coal (used in power plants) and coking coal (used in steel) are the two main import categories; India has limited high-quality coking coal reserves.
  • National Coal Index (NCI): launched by the Ministry of Coal in 2020 as a price reference index for transparent coal pricing.
  • Viksit Bharat 2047 vision targets energy self-sufficiency as a core pillar.
In the news

Tracked since April 02, 2026 · last seen July 07, 2026 · updates as the daily brief publishes

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