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Commercial Coal Mining Can Halve Coal Import Bill

Coal News - Published on Fri, 22 May 2020

Image Source: Coal Import India
CRISIL Ratings said that Indian government’s move to open up commercial coal mining can halve the annual expenditure incurred on importing non-coking coal because of substitution through domestic production. In fiscal 2020, India imported an estimated 180-190 million tonne of non-coking coal costing over INR 90,000 crore. CRISIL Ratings Senior Director Sachin Gupta said “The decision to liberalise coal mining will engender a significant substitution effect by improving the availability of coal, and help meet rising domestic demand. Around half of India’s humongous reserves – most of which is non-coking coal – has not yet been allocated for mining so the potential is substantial.”

CRISIL Ratings Director Nitesh Jain said “Once commercial mining picks up, independent thermal power plants and captive power plants can substitute their annual imports of 80-90 MT. However, 45-50 MT would continue to be imported by the thermal plants designed to operate only on such feedstock.”

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Posted By : Yogender Pancholi on Fri, 22 May 2020
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