India will start exporting thermal coal by 2025-26: Pralhad Joshi

Coal minister Pralhad Joshi on Wednesday said India will start exporting thermal coal by 2025-26 and stop imports of some grades with an expected rise in domestic output.

The country's coal production is expected to reach 1.1 billion metric tons by FY26, of which 200 million tonnes would be from captive and commercial coal mines, coal secretary Amrit Lal Meena said on the sidelines of the launch of seventh commercial coal block auctions.

The current financial year is likely to end with coal production of 880 million metric tonnes, up 14% on year. Despite having the fourth largest coal reserves in the world, India is the second largest importer of the fuel, according to a government report.


Though coal imports saw a decline in FY21 and FY22, a fifth of the country's annual coal requirement is being met through the imported fuel. "Till now we are importing but I am certain that by 2025-26 we will start exporting," Joshi said.

Over the next two years there is going to be major capacity expansion along with commercial coal mining.

With surplus thermal coal expected by FY26, India may look at Bangladesh and Sri Lanka for export to begin with, Meena said. India has exported coal earlier to some of its neighbouring countries.

The higher-grade coal for imported coal-based power plants and metallurgical coal will continue to be imported, Joshi said.

"Only the domestic coal grade used in power plants will be exported," Meena added.

The coal ministry launched the seventh round of auction of coal mines for commercial sale with 106 blocks on offer. There are 95 non-coking coal, one coking coal and 10 lignite mines on offer in the latest round.