India's coal imports are expected to reduce by 11% to 186 MT by FY23

Even though the state-owned corporation has issued import tenders to source the dry fuel from overseas, India's coal imports are expected to drop by 11.4 percent to 186 million tonnes (MT) in the current fiscal year. Coal India Ltd, which produces over 80% of the country's coal, filed tenders this week to import coal to replenish the fossil fuel stock at the country's power plants, as required by the government.

 

In the years 2021-22, the country imported 210 MT of coal. According to the ministry of coal's medium-term predictions, the company is scheduled to import 186 MT of coal in the current fiscal, with 130 MT of non-coking coal and 56 MT of coking coal.

 

For power generation, non-coking coal is mostly used as thermal coal.

 

In 2024-25, India is expected to import 172 MT of coal, 173 MT in 2027-28, and 170 MT in 2029-30.

 

According to the coal ministry, the government imported 215 MT of coal in FY21 and 249 MT in FY20.

 

Last week, Coal India NSE 0.89 percent issued its first offer to buy 2.416 million tonnes of coal, as well as two worldwide competitive bidding E-tenders for 3 million tonnes each to source coal from other countries.

 

The import tender was issued after the government requested that the corporation stockpile fossil fuel to avoid the recurrence of power outages, which occurred in April due to a fuel shortage.

 

Though CIL is ramping up output to meet the country's domestic demand, the PSU claimed that this is a step toward a state of readiness to deal with any future coal supply shortages.