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India’s coal import to be checked by rising domestic production - Report

Coal News - Published on Thu, 13 Dec 2018

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Financial Express reported that the Indian government’s effort to increase domestic coal production and power demand falling with the onset of the winters will check coal imports, a senior coal ministry official has said. Power plants across the country had imported 6.6 million tonne coal in October, 43.5% higher than the monthly average import quantity recorded this year. In the same month, electricity demand had surged 14% YoY. After October’s massive demand rise, the country’s electricity requirement registered a 5.5% YoY growth in November. On the same month, domestic coal production was about 63 million tonne, the highest in the fiscal. In the April-November period, the total coal production in the country was 434 million tonne, 9.8% higher than the corresponding period last years. Coal India’s production rose 8.8% to 358.3 million tonne in these months.

As the power utilities were given priority for coal supply during the periods of higher demand, captive consumers, who primarily run their electricity generation units to cater to own industrial production, had to resort to importing coal.

The official said that “We have resumed supply to coal supply to these units which would cut imports. With coal stock situation in the power plants gradually improving, we are also raising the quantity allotted under the e-auction mode.”

However, experts have pointed out that coking-coal comprises 21% of the country’s coal import, and that cannot be controlled due to unavailability of the product in the country. Another 15% is imported by power plants which have been designed solely to operate on imported coal with low-ash content.

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Posted By : Rabi Wangkhem on Thu, 13 Dec 2018
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