Coal imports fall 7.9% to 243.62 MT in FY25; Coal production during FY25 grew by 5% 

India’s coal imports fell by 7.9% to 243.62 million tonnes (MT) in the financial year 2024-25 from 264.53 MT recorded in the previous year, saving estimated $7.93 billion (₹60,681.67 crore), reported ET citing the Ministry of Coal data.

The non-regulated sector, which excludes coal used for power generation, registered a sharper fall in imports at 8.95% year-on-year. Meanwhile, coal-based power generation recorded a growth of 3.04% in FY25 compared to FY24. However, imports meant for blending by thermal power plants dropped significantly by 41.4%.

The Centre attributed the fall in imports to its initiatives such as Commercial Coal Mining and Mission Coking Coal, aimed at enhancing domestic production and reducing dependency on imported coal. Coal production during FY25 grew by 5 per cent over the previous fiscal.

Coal continues to be a primary energy source for India’s power, steel, and cement sectors. Despite the growth in domestic output, India remains dependent on coal imports for high-grade thermal coal and coking coal, which are in limited supply domestically.

India’s Russian oil imports hit 10-month high on strong demand for ESPO crude

India’s Russian crude oil imports will hit close to 1.8 million barrels per day in May, the highest in 10 months, ship tracking data from Kpler showed, after refiners snapped up more light grades such as ESPO Blend, reported Reuters.

The robust demand for the lighter Russian grades is expected to last into July as Indian refiners ordered more than 10 cargoes of June-loading ESPO crude last week, traders said.

The purchases took place prior to the latest sanctions by the EU and Britain on Moscow’s “shadow fleet” of oil tankers and financial firms.

India’s strong demand has led to a rebound in spot premiums for ESPO cargoes delivered to China, the biggest buyer of the crude exported from the Far East port of Kozmino.

Global steel sector lagging on green transition as coal-powered production rises

India’s role will be crucial in the green transition of global steel sector as it holds 57% (majority) of new coal-based blast furnace capacity under development, despite a projected rise in cleaner electric arc furnace technology. Blast furnaces are expected to dominate steel production by 2030, report by Global Energy Monitor said. 

As much as 303 million metric tons per year of new high-emitting blast furnace capacity is under development in India and China, new research showed, suggesting it will still make up the vast majority of production by 2030, reported Reuters.

Steel production is responsible for about 11% of total climate warming greenhouse gas emissions, with global steel demand set to exceed 2 billion tons by 2030, the US-based Global Energy Monitor think tank said.

While cleaner electric arc furnace technology is expected to rise 24% by then, blast furnace capacity is set to rise 7% and account for 64% of total global output, GEM said.

The newswire noted that the think tank said the steps taken by India, which accounts for 57% of all new coal-based blast furnace capacity under development, will be pivotal in ‘greening one of the world’s most polluting industries’.’India is now the bellwether of global steel decarbonisation,’ Astrid Grigsby-Schulte, one of the report’s authors, said in a statement.

The actions of its steel industry will determine how close the sector gets to the International Energy Agency’s target of switching 38% of furnaces to electric arc by 2030.

China, the world’s biggest steel producer, built around 21 million tons of new blast furnace capacity last year, while India added another 10 million tons, GEM data showed.

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