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Rising Coal Import Tells a Different Story About Government's Plan for its Domestic Production

News

Imports of thermal coal jumped 24 per cent at the country's top 12 major ports to 32.54 million tonnes (MT) during the April-July period this year even as the government continues to announce its commitment to boost domestic output, mainly by monolith Coal India. 

Source: ET
 

SNP Insight

The coal import has jumped 24% with the large part has contributed by non-coking coal demand. If this scenario continues then government may miss its target to totally cut down on the thermal coal import by 2017. As the major portion of the future coal production is planned through CIL. So, CIL’s production growth is utmost importance. But, CIL missing its production target in consecutive financial year is not helping the cause. So, it may be unlikely to think that India will be self-sufficient in domestic coal production in near future.

Source: SNP Infra Research