India is accelerating efforts to replace imported coal with domestically produced fuel at power plants that were originally designed to operate on imported coal. The move is part of the country's broader strategy to reduce coal import dependence and lower energy costs.

According to government and industry officials, domestic coal is already being used at imported coal-based power plants with a combined capacity of 5.7 gigawatts out of the total 18.7 gigawatts of such capacity in operation. Authorities are also conducting trials to extend the transition to an additional 4.3 gigawatts of capacity.

Historically, these power plants relied on coal imports from countries such as Indonesia, South Africa, and Russia. However, imports from Indonesia and South Africa declined significantly during the first four months of the year, reflecting India's growing reliance on local fuel supplies.

The availability of additional domestic coal has been aided by increased renewable energy generation, which has reduced pressure on conventional power generation and freed up local coal supplies for coastal power plants. These facilities were previously dependent on imported coal due to fuel quality requirements.

Industry operators have gradually modified plant equipment to accommodate greater quantities of domestic coal, which typically contains higher ash content than imported varieties. Several plants are now operating with a blend of imported and domestic coal, with some facilities using up to 70 percent local fuel.

Government officials indicated that the coal ministry has facilitated domestic coal supplies to imported coal-based plants through dedicated logistics arrangements. Imported coal-based power plants have already secured around 16 million metric tonnes of domestic coal to meet their fuel requirements.

The transition comes as India's coal-fired electricity generation rose 10 percent year-on-year in May, marking the strongest growth in a year as utilities increased output to meet electricity demand. At the same time, India's thermal coal imports fell to a four-year low during the January to May period, supported by higher domestic coal production and growing renewable energy capacity.

The ongoing shift is expected to strengthen India's energy security, reduce import expenditure, and support the government's objective of maximizing the use of domestic energy resources.