Bengaluru: According to sources and papers seen by Reuters, Coal India Ltd, the world’s largest coal miner, aims to directly export output to neighbouring nations after decades of just servicing local users.
According to a draught policy given to the secretary of coal ministry and obtained by Reuters, the state-run corporation intends to sell to Bangladesh, Nepal, and Bhutan as part of India’s neighbourhood first.
“If it hadn’t been for the energy crisis, we would have ideally intended to start exporting this fiscal year. The Coal India Chairman Pramod Agrawal told Reuters, saying that the present focus was to fulfil domestic demand.
Starting new business routes of Coal India Limited:
India, which relies on coal for about three-quarters of its electrical supply, has yet to fully recover from the power outage. Whereas the Khulna plant, with a capacity of 1,320 megawatts (MW), was recently completed. The joint venture performed in between India’s NTPC Ltd and Bangladesh Power Development Board (BPDB).
India and Bangladesh already have a power transmission network. While it helps satisfy Bangladesh’s electrical needs. CIL is India’s largest coal miner, with a 670 mt coal output target for the current fiscal year. The Coal India consumption is predicted to increase from 700 mt to 1,123 mt by 2023.
On July 2, the first coal-laden rake left for Bangladesh. A rake of coal weighs approximately 4,000 tonnes. But this is the first time that coal has been shipped after the policy change, CIL said in a statement on Monday.
To make matters worse, worldwide coal prices have risen. But as a result of an unexpected temporary export embargo by leading producer Indonesia. While the substantial purchases from European purchasers fearful that a Russian invasion of Ukraine may cut off gas supplies to Europe.
Domestic Supplies of Coal in India:
Coal India, which supplies 80 percent of India’s coal, plans to increase output to 1 billion tonnes by 2024. India is the world’s second-largest coal producer, user, and importer.
Coal India has historically exported modest amounts of coal to neighbouring nations on an ad hoc basis. But never in commercial numbers.
This comes as CIL lifts the prohibition on coal exports as part of its e-auction sales strategy. But the Coal purchasers, including merchants, can now export coal purchased through this mechanism. While this is significant considering that CIL is India’s largest coal miner, with spot e-auction. And special spot e-auction allocations accounting for 46 million tonnes (mt) of coal in FY21.
The Indian government is going to great lengths to exploit coal reserves within the next three decades. While, India has the world’s fourth-largest coal reserves and is the world’s second-largest coal production.
Coal India proposed supplying coal to its neighbouring nations at the same pricing. It gives to non-power sector clients in India in a draught proposal delivered to the coal secretary.
“CIL has allocated 6.7 million tonnes (MTs) of coal in spot e-auction for the April-June’21 quarter. While this is roughly one-fourth of the total booked quantity of 27.3 MTs, fetching the firm a 30% premium over the announced price.” “The add-on was 16 percent under spot e-auction in the corresponding time last year,” according to the CIL statement.
The coal ministry did not react quickly to a request for comment. According to the policy, the miner should export 15-20 million tonnes by 2024-25.
While coal sold by Coal India to non-power sector consumers is often more expensive than coal offered to domestic utilities. But it is still far less expensive than coal currently offered by major exporters such as Indonesia and South Africa.
According to the records, the business spoke with government and industry representatives from Bangladesh, Nepal, and Bhutan. And. it is anticipating a total annual need of up to 17 million tonnes for Bhutan, Nepal, and Bangladesh.