Coal Imports at Indian Ports Up 24% in Q1

According to the Indian Ports Association the import of thermal coal shot up by 24 per cent at the Country’s 12 Major ports registering a total of 32.54 million tonnes (MT) during the April-July period this year. For the same period last year these ports had handled 26.29 MT of coal.

Thermal coal continues to fuel India’s energy programme as 70 per cent of power generation is dependent on the dry fuel. Handling of coking coal, which is used mainly for steel-making, however remained flat at 10.56 MT, as per the data released by the Indian Ports Authority.

The ports had handled 10.74 MT of coking coal in April-July period of 2013-14. Together, they handled 43.10 MT coal during the April-July period of the current fiscal as against 37.03 MT in the same period of the previous fiscal.

India is the third-largest producer of coal, after China and the US, and has 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years.

The 12 major ports handling coal imports include Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia). They handle approximately 61 per cent of the country’s total cargo traffic.

Thermal coal is used in power generation and with the world’s largest miner Coal India, which accounts for over 80 per cent of the domestic requirement consistently failing to meet its target as well as demand of the firms, the power plants resort to imports.

Production by Coal India could barely record a 31 MT increase in coal in four years for the period 2010 to 2014, however, a year later in 2014-15, it recorded an increase of 32 MT.

The company’s production rose by 12 per cent to 121.35 MT during the April-June quarter this year compared to 108.32 MT in the year-ago period.

Less production coupled with increased demand from power firms is further widening the demand-supply gap in the country, which is likely to widen to 185.5 MT in 2016-17.

The company for the current fiscal has decided on raising CIL’s production target to 550 MT. CIL missed the production target for 2014-15 by 3 per cent recording an output of 494.23 MT.

The company’s output target was 507 MT for the fiscal. In 2013-14, the company had clocked production of 462.53 MT against a target of 482 MT.

The Centre has announced plans to boost Coal India’s annual production to the level of 1 billion tonnes by 2019 to meet growing fuel demand.