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Wednesday, 09 July 14
INDIAN GOVERNMENT ADVISED POWER UTILITIES TO INCREASE COAL IMPORTS

COALspot.com: The government of India has advised power utilities to increase coal imports to meet fuel shortages and those that have fuel supply pacts with CILBSE -4.60 % to lift coal under "as is where is" scheme by arranging their own logistics, as reported by Economic Times.

According to Economic Times, "In order to ensure adequate availability of coal, Coal India Ltd BSE -4.60 % (CIL) has been impressed upon to enhance production of domestic coal in the country and power utilities have also been advised to enhance import of coal," Coal and Power Minister Piyush Goyal said in a written reply to the Rajya Sabha.

The supply of coal to power sector from CIL during the April-June period was 88.66 MT as against the target of 101.61 MT. In order to meet this shortfall of around 12.95 million tons, power Utilities were advised to import coal, as reported by paper.

According to Coal and Power Minister of India during the 2014-15 fiscal, as against domestic coal requirement of 527 MT, availability of domestic coal is 473 MT, leaving a shortfall of 54 MT. The minister further added, "During the period April-May, 2014 power utilities have imported 7.6 MT against pro-rata target of 9.0 MT," said Economic Times.

India is already a net coal importer and importing coal from all coal producing countries like US, Colombia, Russia, South Africa, Australia and Indonesia.  Indonesia is the largest coal supplier of India. Indian cement, paper and private power producers consumed Indonesian coal since 1992/1993.

Increase of imported coal usage in India might help to correct the current international coal prices upward, a coal trader from India said. The potential increase of coal imports from current level in to India in near future is also expected to help to heal the freight market at least to survival level from current critical level. However, there is no sign of sudden jumps in coal inquiries from India.

The Ministry of Energy & Mineral Resources of Indonesia again revised down the coal bench mark price in July. HBA for month of July sets at US$ 72.45 which is US$ 1.19 lower than last month HBA.  The declared Indonesian Coal Price Reference for this month is the lowest since November 2009.



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