Coal news and updates

‘India’s coal imports may touch 600 mt in 15 years’

September 17: India will be looking at long–term coal import levels of 500-600 million tons (mt) in 10-15 years’ time, Amulya Charan, Advisor, Energy, Infrastructure & Finance, told ICMW on the sidelines of the 8th Indian Coal Markets Conference held in Kolkata recently, organised by mjunction services limited and IHS McCloskey.

He also feels mines acquisitions should be the way forward. “Without a stake in the mines, I don’t think one can manage import contracts,” he observed.

Charan sees India’s demand for coal redoubling to 2.5-3 billion tons in around 15 years against today’s projected demand of 800 mt-1 billion tons, essentially because of escalated potential demand from the power, steel and cement sectors.

Of this 3-bn demand, he says 20% will comprise imports. “This is essentially because Indian mine opening and consequential infrastructure development may not take pace in tandem with the rise in demand for coal. China ramped up production to 1.5-3 bn tons and 90% of that material comes from underground mines,” he added.

Noting the latent demand in the power, steel and cement sectors, he said, the per capita consumption of power in India is only at 800 units against China’s figure which is four times India’s. Steel production capacity is at 100 mt while actual production level is at a mere 80 mt against China’s 500 mt per annum, and cement production, at 280 mt, is a pittance compared to China’s 8-fold higher levels.

India’s potential for growth in these key sectors is thus huge on such a low base. He also observed that India should look at a GDP growth of 8-10% and not restrict itself to a lowly 6% growth target. A higher GDP growth will fuel the demand for infrastructure expansion, he further commented.