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Dripped Coal Imports: Is it a Positive Signal for Domestic Demand-Supply Dynamics in India?

News

Coal imports declined by 11 per cent to 19.30 million tonnes (MT) in July 2015 compared to the same month of previous year as higher availability of domestic fuel led power generation firms to defer imports. 

Source: ET

SNP Insight

India needs 910 MTs of coal if it want to full fill its electricity demand in FY 2015-16 but with current rate of production it can achieve 700 MTs of coal production by 2015-16. So, there is a clear shortfall of 210 MTs in this fiscal year which should be full fill by coal import. But the present trends shows there is a fall in imports rather than rise in Import. This scenario result due to low power procurement by DISCOMs which force the power plants to run in low PLF(58%) or to shut down there units. Also not adequate coal handling and transportation facility of imported coal in ports also forced the power companies to reduce their import in monsoon season.

Source: SNP Infra Research