India Shelves Coal Import Mandate for Power Plants, Report Says
India has reportedly shelved a proposal to make coal imports mandatory for power plants, according to Bloomberg News, which cited people familiar with the matter. The government had discussed requiring power stations to blend imported coal with domestic supplies to address declining fuel stockpiles and ease supply pressures. Reuters said it could not immediately verify the report.
The decision comes as high international thermal coal prices have made imports less attractive, while rising energy import costs add to the pressure. Instead, policymakers have reportedly asked Coal India to increase domestic production and the railways to help ensure coal reaches power stations efficiently.
India is also preparing for higher electricity demand amid hotter-than-usual weather associated with El Niño. More than 100 captive coal-fired power plants have been ordered to operate at maximum capacity from October through December 2026. However, several coal-fired power stations have been facing critically low fuel stocks, highlighting the challenges of maintaining reliable electricity supplies.
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