New Delhi, 25.06.2025: India is changing the way it buys coal by choosing higher-quality coal from new sources and cutting down imports from Indonesia. Although Indonesia has long been India’s biggest supplier of thermal coal, Indian companies now prefer coal with higher energy content that gives more power per ton, even if it’s slightly more expensive.
Because global coal prices have fallen, better-quality coal from South Africa, Kazakhstan, Colombia, and even Mongolia has become affordable. These energy-rich varieties are more efficient, helping power plants and industries save money in the long run.
“Coal with higher energy value may cost more per ton, but it gives more energy per rupee spent,” explained Vasudev Pamnani, director at I-Energy Natural Resources, a coal trading company in India.
As a result, India’s coal imports from Indonesia dropped over 14% in the first five months of 2025. Meanwhile, imports from countries like South Africa and Mozambique have hit new highs.
India is also buying more coal from countries like Tanzania and Kazakhstan—places that were not major suppliers before. This shift is helping India diversify its sources and reduce risks from relying too much on one country.
Overall, India’s total thermal coal imports fell by over 5% in early 2025, reflecting a move toward better efficiency and smarter buying.
As Indian industries grow, especially in steel and power, the country is focusing on coal that can give more energy with less volume—supporting both cost savings and energy security.
