Sunday, September 19, 2010

Growing appetite for coal in India

Coal powers more than half of India's electricity plants and demand for the commodity is expected to rise sharply as the third largest Asian economy expands at a fast clip. New steel and cement industries coming up in India are also hungry for the black gold, pushing up its imports. Here are some facts, projections and issues surrounding India's coal industry:

1. India produced 526.16 million tonnes of coal in 2009/10, up by 6.78% from 492.76 million tonnes of coal in the previous year.

2. Imports of coal were 73.25 million tonnes in 2009/10, up 24% from 59 million tonnes in the previous year.

3. Coking coal, used mainly in steel, is mostly imported from Australia. Non-coking coal that is consumed by power and cement plants is imported from Indonesia and South Africa.

4. There are 556 coal mines in India, mostly owned by the government and located primarily in east and south central regions of the country.

5. State owned Coal India Ltd, with its seven subsidiaries, is the largest miner holding over 80 percent of India's coal market.

6. India's coal production is expected to reach 675 million tonnes by 2012, with 459 million tones available for power firms.

7. Coal imports will continue to get bigger with acquisitions and collaborations seen with coal mines in Australia, Indonesia and Mozambique.

8. Import requirement is seen at 135 million tonnes by 2012, but it may be hampered by congested ports and problems of rail linkages from ports to plants.

-Umesh Shanmugam

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