Plants built for imported coal being tested for local blends

New Delhi: India has begun testing whether power plants designed to run on imported coal can blend domestic fuel, as part of a broader push to increase local sourcing and reduce exposure to volatile global markets.

The trials, covering 10 units with a combined capacity of about 18,000 MW, will determine the extent to which such plants can shift to domestic supplies, people familiar with the matter said.

The exercise is evaluating operational feasibility, including the impact on efficiency, combustion and equipment performance.

The government is pushing plants to reduce dependence on imported coal amid ample domestic availability, aiming to limit vulnerability to supply chain disruptions. It is seeking to increase blending wherever feasible. Some imported coal-based power producers have agreed to conduct trial runs. An industry expert said the move could help manage fuel costs and reduce exposure to global price volatility.

However, some plants have cited technical constraints, including designs suited to low ash-content coal, specific size of coal requirements, stringent emission norms and space limitations.

India still needs to import coking coal for industries such as steel and high-grade thermal coal mostly for imported coal-based plants as these are not sufficiently available within domestic reserves.

The country imported about 250 million tonnes of coal, both thermal and coking coal, annually in the last few years. About 39.2 million tonnes of imported thermal coal was used by imported coal-based power plants in FY26 compared with 48.3 million tonnes a year back.

The initiative aligns with efforts to increase domestic coal utilisation. India's coal output surpassed 1 billion tonnes in FY26.

In January 2024, the coal ministry said imported coal-based plants would be encouraged to switch to or blend more domestic fuel as output rises.