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India Shifts Power Plants to Domestic Coal to Curb Imports

India is pivoting its power infrastructure away from global markets, forcing plants originally designed for imported coal to switch to domestic supplies. This strategic transition, driven by surging local production and renewable energy growth, has pushed thermal coal imports to a four-year low during the first five months of the year.

India Shifts Power Plants to Domestic Coal to Curb Imports

Industry and government officials confirm that power producers have already integrated domestic coal for 5.7 gigawatts of capacity, with plans to convert an additional 4.3 gigawatts. At several facilities, the share of locally sourced fuel has climbed to 70 percent, effectively replacing the reliance on foreign shipments. This shift marks a significant move for the world’s second-largest coal consumer, which is aggressively targeting a reduction in thermal coal dependency.

Despite the rapid expansion of solar and wind installations, coal remains the backbone of the nation’s electricity grid, accounting for roughly 60 percent of total power output. Authorities maintain this reliance to safeguard against potential blackouts during extreme heat waves. According to Rajnath Ram, an adviser at the government think tank NITI Aayog, coal will remain a cornerstone of the power system for the next two decades, though the focus has shifted toward balancing energy security with sustainable consumption.

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