Thermal coal imports surged 18 per cent at the country’s top 12 major ports to 55.90 million tonnes (mt) in the first seven months of the current fiscal amid government efforts to boost domestic output, led by state-owned Coal India Ltd.
These ports had handled 47.23 mt of coal during the April-October period of the last fiscal, 2014-15. Thermal coal is the mainstay of India’s energy programme as 70 per cent of power generation is dependent on the dry fuel, while Coal Minister Piyush Goyal has been emphasising the need to increase the production by state-run Coal India.
Imports of coking coal, used mainly for steel-making, also jumped by 6.31 per cent to 19.38 mt, as per the latest data with the Indian Ports Authority.
The centre-owned ports had handled 18.23 mt of coking coal in April-October period of 2014-15. Together, these ports handled 75.28 mt coal during the April-October period of the current fiscal as against 65.46 mt in the same period of the previous fiscal.
India is the third-largest producer of coal after China and the US with 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years.
India has 12 major ports -- Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) -- which handle approximately 61 per cent of the country’s total cargo traffic.
Thermal coal is used in power generation and with the world’s largest miner Coal India, which accounts for over 80 per cent of the domestic requirement, consistently failing to meet its target as well as demand of the firms, the power plants resort to imports.
Less production coupled with increased demand from power firms is further widening the demand-supply gap in the country, which is likely to widen to 185.5 mt in 2016-17.
Coal India could record barely a 31 mt increase in coal production in four years from 2010 to 2014, but in 2014-15, it recorded an increase of 32 mt.
The company’s production rose by 9.15 per cent to 273.91 MT during the April-October quarter this year compared to 250.94 mt in the year-ago period. For the current fiscal, CIL’s production target has been fixed at 550 mt.
Cabinet to decide on underground coal gasification policy soon
The Coal Ministry will soon seek the Cabinet’s approval for a proposed policy on underground coal gasification. Underground coal gasification (UCG) is a method of converting coal still in the ground to a combustible gas that can be used for various uses, including power generation.
“We have done it. The (cabinet) note (on the policy) is ready. We will go to the Cabinet and the decision would soon be taken,” a Coal Ministry official said.
On the proposed policy, Coal and Power Minister Piyush Goyal had recently said that it was progressing very well.