India is accelerating efforts to substitute imported coal with domestically mined fuel at power plants that were originally built to operate on imported coal. The move is part of the government's broader strategy to reduce coal imports, improve energy security, and lower power generation costs.

According to government officials, around 5.7 GW of imported coal-based power generation capacity is already operating with domestic coal blends exceeding 50 percent. Authorities are also testing the use of local coal at an additional 4.3 GW of capacity to further expand the transition.

The increased availability of domestic coal has been supported by growing renewable energy generation, which has reduced pressure on conventional power plants and freed up local coal supplies. As a result, coal producers have been able to meet a larger share of power sector demand without relying heavily on imports.

India's coal imports from major suppliers such as Indonesia and South Africa have declined as utilities increasingly shift toward domestic fuel. The transition is expected to help reduce foreign exchange outflows while supporting domestic coal production and improving self-sufficiency in the energy sector.

The initiative aligns with the government's long-term objective of minimizing dependence on imported energy resources while ensuring adequate fuel availability for electricity generation. However, the use of domestic coal at plants designed for imported fuel requires technical adjustments and testing to maintain operational efficiency and environmental compliance.