Coal news and updates

DRI probe may impact India’s steam coal imports?

December 23: The recent action by the Directorate of Revenue Intelligence (DRI) against some power utilities for allegedly inflating prices of imported coal to prepare a case for higher power tariffs might temporarily affect India’s steam coal imports, industry experts believe.

“Because of the DRI issue there might be some fall in imports of steam coal by power utilities in January 2015 as the latter may defer loading of vessels till a clear picture emerges,” an official from a private sector power generation company said, however, adding that this was a personal opinion.

“Not only the power companies may defer loading, but will also avoid fresh buying. They will be cautious and may wait for some more time for clarity,” the official said.

In addition, the power generation companies, which are already in trouble because of the DRI’s investigations, will be cautious and may defer shipments, the official added.

Murmurs of inflating prices of imported coal by some power generation companies in order to prepare a case for higher power tariffs were being heard for some time but now it appears to be official as the DRI has found the allegation to be true.