India's reliance on imported thermal coal eased sharply during the January-May window, with shipments totaling 65 million tons - the smallest five-month intake in four years, BigMint data show.
The decline represented a 12% drop versus the same period a year earlier. India remains the world's second-largest buyer of thermal coal even after the reduction.
Officials and market observers point to multiple factors behind the fall. Coal India directed its subsidiaries to lift production as high temperatures connected to the El Nino pattern increased electricity consumption. At the same time, renewable electricity output expanded markedly, and BigMint also cited higher prices for imported coal and elevated freight rates - tied to tensions in the Middle East - as contributors to the weaker import tally.
Generation and demand trends
Total power generation in India increased by 5% in the January-May period compared with the prior year, while renewable generation grew by 22% over that same span. These shifts occurred alongside hotter weather and rising demand.
Peak power demand exceeded the government's forecast of 270 gigawatts on May 21, driven by heat waves. In May specifically, national power demand rose 11.2% to reach a two-year high, according to data from federal grid regulator Grid-India.
Thermal power generation also moved higher in May, climbing 10% from a year earlier and reaching its strongest level since May 2024 as utilities ramped up output to meet persistent electricity needs.
Policy stance
The country has set a goal of cutting thermal coal use for power generation by at least 30% this year, part of a broader push to reduce dependence on imports and to shift the generation mix. The data through May show a combination of increased domestic supply, higher renewable output and cost pressures on imports that together contributed to the lower import volumes reported by BigMint.
While imports have fallen, India continues to balance domestic production, thermal generation and growing renewable supplies to satisfy rising electricity demand during the hotter months.