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Consumption of imported coal by Indian utilities for blending has fallen, exacerbating a reliance on domestic supplies to cater for increased power demand. Imported coal use for blending with domestic coal at utilities dropped by 35pc from a year earlier to 13.5mn t as of 28 October, India's coal ministry said. The fall comes as Indian utilities have not been as aggressive this year in seeking seaborne cargoes compared with last year with a steady increase in domestic coal supplies and limited heatwaves in the country during the summer months. A sustained heatwave in 2022 lifted power demand and coal burn at utilities, bringing the country on the brink of a power crisis and prompting authorities to direct utilities to boost imports. The drop in blending is in line with the trend in overall imports this year. Indian thermal coal imports fell by 5.84mn t from a year earlier to 118.85mn t during January-September, according to shipbroker Interocean's data. Receipts of imported coal at utilities — both domestic as well as imported — dropped by 19pc to 27.8mn t during April-September, the first six months of India's 2023-24 fiscal year, according to the Central Electricity Authority (CEA). Domestic coal receipts rose by 7.5pc from a year earlier to 381.4mn t during the same period. But coal burn at power plants has increased with firm power demand. India's coal-fired power generation has continued to increase this month, outpacing growth in domestic production and supplies, following a post-monsoon surge in electricity consumption. India's coal-fired generation rose to 103.86TWh during 1-29 October, up by about 33pc from a year earlier, according to CEA data. It was 103.34TWh last month, up from 97.7TWh in September 2022. The uptrend in power demand led to a sharper inventory drawdown at utilities. Combined coal inventories at Indian power plants reached 20.8mn t as of 29 October, CEA data show. The stocks were equivalent to little over seven days of use and have fallen from 23.53mn t as of 30 September and 29.99mn t at the end of August, prompting authorities to order utilities to boost imports. India's power ministry last week ordered domestic coal-fired utilities to increase the percentage of imported coal in their blends to 6pc by weight from 4pc earlier, effectively reverting to the earlier blending ratio this year. This directive is valid until March 2024. The ministry also directed imported coal-fired power plants, with a combined capacity of 17.5GW, to boost power generation until 30 June 2024.