KOLKATA: India’s coal imports declined almost 7 per cent during the April-December period as power plants stocked up adequately on the fuel with improved domestic supplies.
Imports by state and central sector thermal power companies fell 40 per cent, although the purchases from overseas by private companies increased 5 per cent from the year-earlier period.
The nation imported 124 million tonnes of coal during the nine-month period compared with 132 million tonnes a year earlier. NTPCBSE -4.37 % was the largest importer among state-owned utilities, bringing in about 7 million tonnes of coal compared with 12 million tonnes previously.
Public sector companies imported 19.88 million tonnes of coal, while in the corresponding period a year earlier, the volume was 33.2 million tonnes. The private sector’s coal imports increased to almost 104 million tonnes from 99 million tonnes.
Most private plants do not have confirmed supply contracts with Coal India or are located near ports and can buy imported coal, which is cheaper than domestic supplies. Coal India has boosted production and increased supplies to power companies. According to Central Electricity Authority data, power plants in India had 31 million tonnes of coal on December 31, more than double the level of 13 million tonnes a year earlier.
Increased local supplies, along with slower-than-anticipated electricity demand growth, resulted in a reduced requirement for imported coal, which turns out to be costlier for companies that are set up near mines. The landed cost of imported coal is cheaper than coal delivered to plants located away from the coast. The central government has targeted coal output of 1.5 billion tonnes in India by 2020, of Coal India is expected to produce 1 billion tonnes and private companies the remainder.
“With Coal India witnessing a near 10 per cent growth in sales, imports have already started to fall. This is expected to fall further as more coal becomes available and Coal India starts producing enough to supply bulk of the thermal power plants,” a senior Coal India official said.
