Coal imports by thermal power plants decline; government measures to reduce import dependence
Coal imported by thermal power plants fell sharply in FY 2025-26 after government actions to increase domestic supplies and manage import-linked supply rules.

- ACQ is the contracted coal quantity for supply planning; increasing ACQ is meant to use more domestic coal.
- ICB plants can secure coal under the Revised SHAKTI Policy, 2025 to reduce dependence on imported coal.
- FSA holders can secure coal under the Revised SHAKTI Policy, 2025 after procuring 100% of ACQ under existing FSA.
- OGL allows consumers to import coal from chosen sources as per contractual prices.
What happened: thermal power plant coal imports fell in FY 2025-26
The Ministry of Coal reported a decline in coal imports by thermal power plants after government actions aimed at increasing domestic coal availability and reducing import dependence in the power sector. Reported figures are:
Coal imported by thermal power plants in FY 2025-26: 45.4 MTCoal imported by thermal power plants in FY 2024-25: 62.5 MTApproximate change: decline of around 27.4%
UPSC can frame the issue around how thermal power fuel security depends on aligning coal contract quantities and supply mechanisms with transport and evacuation logistics to reduce import dependence.
