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Thursday, 08 October 09
COAL INDIA SAYS IMPORTS COULD JUMP 10 TIMES IN 3 YRS


Reuters reported that, Coal imports by state explorer Coal India Ltd could jump 10 times to 40-45 million tonnes in three years to meet a sharp rise in domestic demand, stoked by power firms, a senior company official said on Thursday.

India has 10 percent of the world's coal reserves, the biggest after the United States, Russia and China, but its coal imports have grown rapidly from almost nothing five years back as power utilities ramp up capacity.

The share of coal-fired plants in India's total installed power generation capacity will rise to 57 percent by March 2012 from the current 53.3 percent or 80,283.88 megawatts, a recent report by PricewaterhouseCoopers has said.

Coal India plans to import 4 million tonnes of the fuel this year, Marketing Director A. Sarkar told reporters.

He said India's port, road and rail infrastructure needed to be boosted as the country's current capacity could not handle the rising import volumes.

Sarkar said Coal India was considering buying overseas projects to secure 12 million tonnes of coal by 2012.

He said delay in obtaining necessary clearances for mining was a major hurdle in achieving its production target.

He said the company might miss its production target of 520 million tonnes by 2012.

The target might fall short by 33-34 million tonnes due to procedural delay in getting environment and other clearances.

The company aims to produce 435 million tonnes of coal by March 2010.
Source:Reuters



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