India's coal minister Pralhad Joshi has announced that the country will begin exporting thermal coal by the fiscal 2025-26 and stop imports of some grades, anticipating an increase in domestic production.

The country's coal production is predicted to reach 1.1 billion tonnes by FY26, of which 200 million tonnes will come from both captive and commercial coal mines.

The current fiscal year is expected to end with coal production of 880 million tonnes, an increase of 14% from the previous year.

India is the second largest coal importer in the world only second to China, despite having the fourth largest coal reserves globally.

Imports have declined in FY21 and FY22, but still account for around a fifth of the country's annual demand. "Till now we are importing but I am certain that by 2025-26 we will start exporting," Joshi said.

Higher-grade thermal coal for India's imported coal-based power plants and metallurgical coal will continue to be imported, while only coal able to apply for domestic coal-based power plants will be exported, the minister noted.

The coal ministry has launched the seventh round of auction of coal mines for commercial sale, with 106 blocks on offer, 95 of them non-coking coal, one coking coal and 10 lignite mines.

As domestic output continues to rise, India may look at Bangladesh and Sri Lanka for export to begin with.

(Writing by Alex Guo  Editing by Harry Huo)
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