Indian Power Sector Coal Imports Hit 15-Month High

Coal imports by India’s power sector surged 85.6% year-on-year to 5.52 million metric tons in August, reaching their highest level since May 2025. The increase came as a heat wave and lower hydropower generation pushed electricity demand higher, while domestic coal supplies struggled to keep pace.

Around 80% of the imported coal came from Indonesia, according to local coal trader iEnergy Natural Resources. Domestic coal dispatch to power plants increased by only 2.3 million tons, compared with a 10-million-ton rise in coal consumption, widening the supply gap.

The shortage has pushed power producers towards more expensive overseas supplies. Coal prices from Indonesia, Russia and South Africa have also risen since May, while reduced rainfall and limited battery storage have added pressure on coal-fired power generation.

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