India considers permitting power plants 5% imported coal blend

India Sep 25, 2026

India is thinking about letting power plants blend in a bit of imported coal, up to 5%, with local supplies.

This move comes as coal shortages have pushed electricity prices to their highest in years, and it could roll back recent efforts to rely less on imports.

Coal price hikes squeeze Indian plants

Coal prices in Indonesia, Russia, and South Africa have jumped since May, with Indonesian prices up about a fifth, Russian prices 14% higher and South African rates up 19%.

Blame higher electricity use and weak monsoon rains that hit hydropower.

Now, almost 40% of coal plants have less than three days' worth left, so the government is considering imports to keep the lights on.