IIM study identifies India’s potential to export 15 MT coal to neighbouring countries – CNBC TV18

In a proposed move that may mark a paradigm shift in India’s status as a net coal importer, an Indian Institute of Management-Ahmedabad (IIM-Ahmedabad) study has identified the potential to export 15 MT (million tonnes) of coal to neighboring countries: namely 8 MT coal to Bangladesh, 3 MT coal to Myanmar, 2 MT coal to Nepal and 2 MT coal to other countries.

As per India’s Coal Ministry, the Maitree Super Thermal Power Project (MSTPP) (2X660 MW) constructed by Bangladesh India Friendship Power Company Ltd (BIFPCL) is a 50:50 JV between NTPC & Bangladesh Power Development Board (BPDB), which requires 5 MT coal per annum as per the international pricing policy.

The Coal Ministry is working on an initiative to reduce coal imports and promote exports to strengthen India’s energy security on the back of enhanced domestic production.

India’s coal production had risen by 11.65% in FY 2023–24 to reach 997.26 MT, from 893.19 MT in FY 2022–23, and the target for FY 2024–25 has been set at an ambitious 1,080 MT.

Most of the demand for coal in India is met through indigenous production and supply. The actual demand for coal increased to 1,233.86 MT in FY 2023–24 from 1,115.04 MT in FY 2022–23.

To streamline the process of reducing coal imports, an Inter-Ministerial Committee was formed to coordinate efforts among various ministries to identify opportunities for import substitution.

While acknowledging the need for some high-grade coal imports, the focus remains on minimising non-essential imports and promoting the use of domestically produced coal to insulate India from global price fluctuations.

Domestic coal production is expected to grow by 6-7% annually in the next few years to reach about 1.5 billion tonnes by 2029–30.

Considering the decline in the performance of the washeries of Coal India Ltd (CIL) and the burgeoning demand of washed coking coal in the steel sector, the government has taken the route of monetisation of the old washeries to enhance the washed coking coal capacity.

For this purpose, the government has approved the creation of a new sub-sector under the Non-Regulated Sector linkage auctions with the nomenclature of ‘Steel using Coking coal through WDO route’.

The creation of the new sub-sector with the assurance for long-term coal linkage from the identified mines for the entire term of the contract period is expected to lead to the monetisation of coking coal washeries, thereby increasing the availability of washed coking coal in the country.

It is also expected that the new sub-sector will lead to enhanced domestic coking coal consumption in the Steel Industry in the country.

To substitute the import of coking coal, the current domestic blending of coking coal by the steel sector is to be increased from the present 10-12% to 30–35%.

Accordingly, the Coal Ministry launched Mission Coking Coal in FY 2021–22 to meet the domestic coking coal demand as projected in National Steel Policy 2017.

Following transformative measures taken under the Atmanirbhar Bharat initiative, domestic raw coking coal production is likely to reach 140 MT by 2030.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}