Coal news and updates

Indian cos go slow on deals due to logistics issues

October 10: Despite a softness in international coal prices, a number of Indian companies are going slow on finalising deals for imported coal because of issues related to evacuation of material from ports to consumption points, industry sources said.

“Some companies have floated enquiries, but are delaying finalisation of deals because they anticipate problems in transportation of coal from ports to consumption points,” they said.

“Most of the ports on the east coast undergo a waiting period of 10-20 days because of lack of space in stocking the material due to rake shortage that is affecting evacuation from ports to consumption points,” sources said, claiming that, “Vizag Port has a waiting period of 10 days, while at Paradip this amounts to 10 days and at Dharma Port, 15-20 days.”

“Even ports in Gujarat, which otherwise did not have any major issues, have started experiencing evacuation problems, prompting companies to delay their shipment of imported coal,” the source added.

“The scenario is such that despite having coal at Indian ports, plants are suffering because of lack of rakes due to which the material is not getting transported from ports to consumption points,” an official from a cement company said.