India May Become World’s Largest Coal Importer
India’s coal imports in September zoomed up by 19% to 16 million tons as compared to a year ago, no thanks to low output from the state-run Coal India Ltd (CIL), according to data by online trader mjunction.
India’s imports of all types of coal rose 18.47% to 110.15 million tons (mt) in April-September, as against 92.98 mt imported during the same period in 2013-14.
An India Ratings report earlier said India had imported 171 mt of coal at US $16.41 billion in 2013-14 as against 145 mt at US $17.01 billion in the previous fiscal, clearly underlining the fact that India’s dependence on foreign coal is increasing.
Part of the reason for the September imports going up was low international prices of coal, making it an attractive proposition for Indian consumers.
The situation in India vis a vis coal supply is dire. One estimate puts about a week’s supply of coal remaining in around 60 of the nation’s 103 power plants. This is the worst the country has seen in six years.
CIL, which is also the world’s largest miner of the fuel, accounts for around 80% of the country’s total coal production but the state-owned firm has not been able to keep up with the rise in demand for coal, especially in the power sector.
Its April-September production fell short by over 9 million tons of its targeted 220.11 million tons.
Now, to add to the woes, the Government of India has asked CIL to cancel the auction of another 3 coal blocks that were put under the hammer.
By the way things are moving on the coal front, Glencore, the biggest trader, has predicted that Indian imports will go up to 180 mt in 2015 and then to 300 mt by 2020.
Source: oilpricecom- India May Become World’s Largest Coal Importer
