Coal India 10-year plan to cut 243 MT imports by 2036

Why Coal India is drawing up a long runway plan

Coal India Ltd (CIL) is preparing a comprehensive ten-year roadmap to reduce India’s current coal import volume of 243 million tonnes (MT). The plan is designed to substitute “substitutable” imports over 2026-2036 through higher domestic output, coal quality upgrades, and logistics cost parity. A source cited in the report said the roadmap will include a detailed forensic audit of imports, backed by sector-specific policies and phased shift strategies to boost local supply. The initiative matters because coal remains central to India’s power generation and industrial demand, and import substitution directly affects foreign exchange outgo. CIL accounts for more than 80% of domestic coal output, making its execution capability critical to any large import-cut programme. The company also plans to engage a consultant to help prepare the roadmap, including suggestions on non-tariff barriers. The plan sits alongside the government’s broader push to raise domestic production and improve evacuation infrastructure.

What the proposed 2026-2036 roadmap covers

The stated objective is “total substitution” of all substitutable coal imports by targeting a reduction from the current 243 MT import volume. The three operational levers identified are domestic augmentation, quality enhancement through beneficiation, and logistical price-parity. “Quality enhancement” signals a focus on improving usable coal quality so that end-users can switch from imported coal without compromising operational needs. Logistical price parity is aimed at narrowing delivered-cost differences between domestic and seaborne coal, especially for consumers located near ports. The roadmap is also expected to recommend measures around non-tariff barriers, indicating an attempt to address operational frictions beyond headline production increases. The phased approach implies that different sectors may shift at different speeds, based on technical constraints and fuel specifications.

Forensic audit of imports and sector-by-sector shift plans

A key element mentioned is a forensic audit of coal imports. This suggests CIL and policymakers want a granular view of where imports are truly unavoidable versus where domestic coal can replace them with targeted interventions. The roadmap is expected to be supported by sector-specific policies, rather than a single uniform approach across power, steel, and other industrial consumers. Imported coal use for blending has been an important area of focus for the government in recent years. Separately, the Ministry of Coal noted that coal imported for blending was 35 MT in 2022-23 and is “gradually reducing” due to abundant domestic supply. A structured audit can also help identify plants that can shift to domestic supply based on coal grade requirements and logistics feasibility.

National Washery and Logistics Grid: fixing bottlenecks

The roadmap is set to include a National Washery and Logistics Grid to streamline coal washing and transport. Washing and beneficiation can reduce ash content and improve consistency, which can help substitute imported coal in certain applications. Logistics is the second major constraint, because delivered cost often decides whether a consumer buys domestic coal or imports via nearby ports. The washery and logistics grid is positioned as a supply-chain intervention to address bottlenecks in movement and preparation. The report also points to CIL’s interest in achieving logistical price parity, which ties directly to rail evacuation, handling infrastructure, and shorter lead times. For the eastern seaboard, improved evacuation from CIL subsidiaries in Odisha, Jharkhand, and West Bengal has already been cited as a factor that helped domestic coal displace imports for some consumers.

CIL’s production targets and the build-out needed

CIL produced 768.1 MT of coal in FY26 and has set a goal of reaching 1 billion tonnes (BT) by 2028-29 to reduce dependence on imports and meet demand. The company has said key projects and enablers for the ramp-up have been identified, including environmental and forest clearances, land acquisition, and evacuation infrastructure. In its annual report outlook, CIL also set a supply target of 900.24 MT for 2025-26, with around 74% expected to be consumed by the power sector. The projected demand from the power sector for FY26 is 668.1 MT, highlighting how power requirements drive dispatch planning. CIL has earmarked capital investment of ₹16,000 crore for FY26 to maintain volume growth. The company also indicated it intends to offer more coking coal to the steel sector and supply coal for upcoming coal gasification projects.

Import trends show pressure easing, but not disappearing

India’s coal imports during FY 2024-25 fell 7.9% to 243.62 MT from 264.58 MT in the prior fiscal year, resulting in foreign exchange savings of about $1.93 billion (₹60,681.67 crore), according to information shared in Parliament. For April 25 to October 2025, total coal imports were 149.80 MT versus 149.23 MT in the corresponding period of the previous financial year, indicating a near-flat year-on-year position for that window. BigMint data cited in the report showed non-coking coal imports fell 6% year on year in CY’25 to around 163 million tonnes (mnt), down from more than 173 mnt in CY’24. BigMint also tracked a month-to-month pattern where volumes started at 13 mnt in January, peaked at 18 mnt in May, and fell to about 11.4 mnt in December. Domestic coal production rose 1.06% year on year to around 984 mnt in CY’25, which BigMint said helped keep imported coal demand subdued. The report also noted that several east coast ports recorded a 30%-50% drop in import volumes from their 2025 peaks by year-end.

Government levers: targets, logistics policy, and import substitution forums

The Ministry of Coal has set a domestic production target of about 1.5 BT by FY 2029-30. It launched the Coal Logistic Plan and Policy in February 2024 to develop infrastructure for efficient coal evacuation, based on higher production projections. The government has also facilitated allocation of coal blocks, encouraging private participation and streamlining approvals for mining projects. An Inter-Ministerial Committee (IMC) has been constituted for coal import substitution and has identified Imported Coal Based (ICB) plants where domestic coal supply can be examined. Under the Revised Shakti Policy, 2025, ICB plants are allowed to secure coal under Window-II, which the government said has helped increase domestic coal consumption. Separately, coal stocks at power plants were reported at 31.6 MT as of October 28, 2024, compared with 18.8 MT a year earlier, with the increase attributed largely to CIL’s contribution.

Key numbers at a glance

Market impact: where the roadmap could bite first

For power generators and industrial consumers, the most immediate impact comes from improved domestic availability and delivered-cost competitiveness. The report explicitly links reduced east coast import volumes to rising domestic coal availability and improved evacuation from CIL subsidiaries in Odisha, Jharkhand, and West Bengal, aided by shorter rail distances and higher mine output. Import reduction also has a macro effect through foreign exchange savings, which the government quantified at ₹60,681.67 crore for FY 2024-25 compared with FY 2023-24. For CIL, the roadmap aligns operational priorities such as beneficiation, evacuation and supply-chain upgrades with import substitution outcomes that policymakers can track. It also increases scrutiny on imported coal used for blending and for plants that historically relied on seaborne supply, especially where domestic grades can technically substitute.

Analysis: why quality and logistics are as important as volume

The emphasis on beneficiation and a washery-logistics grid suggests the constraint is not only how much coal India produces, but whether the coal matches end-user specifications and reaches consumers at competitive delivered costs. The forensic audit component signals a push to separate non-substitutable imports from those driven by commercial convenience, timing, or local logistics disadvantages. Government measures such as the Coal Logistic Plan and Policy and the IMC process for ICB plants reinforce that import substitution is being treated as a system problem across mining, rail, plant design and procurement frameworks. At the same time, the reported import data shows that imports can fall even when demand is strong, if domestic supply and evacuation improve in specific corridors. The roadmap’s 2026-2036 window also indicates CIL is thinking beyond a single production milestone and toward sustained substitution, which typically requires steady improvements in grade management and movement efficiency.

What to watch next

The roadmap is expected to be supported by a consultant-led exercise, including recommendations related to non-tariff barriers. Details on the National Washery and Logistics Grid, including scope, locations, and implementation sequencing, will be important for assessing execution. Investors and industry users will also track whether CIL can maintain its supply target of 900.24 MT for FY26 while progressing toward 1 BT by 2028-29. On the policy side, continued use of IMC reviews and the Revised Shakti Policy, 2025 mechanisms will shape how quickly certain plants move from imported coal to domestic linkages.

Conclusion

Coal India’s proposed 2026-2036 roadmap targets a reduction in the current 243 MT coal import volume by combining higher domestic output, coal quality upgrades, and logistics cost parity. The plan’s focus on a forensic audit, sector-specific shift strategies, and a National Washery and Logistics Grid reflects an execution-heavy approach to import substitution. Recent data points already show imports easing in FY 2024-25 and CY’25, supported by improved domestic supply and evacuation in key regions. The next milestones will be the consultant-backed roadmap details, the rollout of washery and logistics interventions, and progress toward CIL’s production and supply targets over the next few years.