India’s thermal coal imports rose to an 11 month high in April 2025 as the power sector stocked up supplies for the blistering summer season with peak electricity demand (day) likely to hit 270 gigawatts (GW) this month.

According to global real-time data and analytics provider Kpler, India’s purchases of foreign thermal coal, usually procured by the power sector, rose by 6.6 per cent m-o-m to 15.40 million tonnes (mt) last month, provisionally. However, it fell by around 2.8 per cent on an annual basis.

The higher import requirement also reflects on the government’s direction to imported coal based (ICB) power plants to run capacities at optimum levels till June 30.

Summer Rush

On cumulative imports during April, Alexis Ellender, Senior Lead Dry Bulks Insight at Kpler, told businessline “We are in the peak season for Indian thermal coal consumption as hot weather drives demand. Meanwhile, the country’s steel producers continue to perform strongly. These are supporting coal imports, which hit the highest level since May 2024 at 22.19 mt last month.”

Indian thermal coal imports climbed to an eleven-month high of 15.40 mt in April, although still 0.44 mt lower on an annual basis. The annual decline results from growth in domestic coal production, up by 4 per cent y-o-y in April, and a slight yearly decrease in coal-fired generation, he explained.

“May thermal coal imports are forecast to stay firm at 15-16 mt but, despite a government mandate to boost coal-fired generation, are expected to be below May 2024’s 17.70 mt. This is due to a combination of higher domestic production and near-record coal stockpiles,” Ellender added.

Indian Energy Exchange (IEX) in its April 2025 commentary also points to better availability of the dry fuel.

“Looking ahead to FY26, peak power demand is expected to exceed 270 GW. In response to this rising demand, the government has implemented necessary measures, including the mandatory operation of ICB plants, gas-based plants, and better availability of coal. These measures will also enhance sell liquidity on the power exchanges,” it said.

India’s energy consumption rose 2.2 per cent y-o-y to 147.5 billion units (BU), with April 25th recording a peak demand of 235 GW (April 2024: 224 GW). Despite higher power demand, average market clearing price in the Day Ahead Market in April remained competitive at ₹5.20 per unit, similar to last year, due to increased supply, IEX added.

Looking further ahead, said Ellener adding, a more severe monsoon season than typical with above-average rainfall is forecast. This would mean lower temperatures and increased hydropower output, reducing demand for coal-fired generation and weighing on import demand.

Published on May 11, 2025