India may witness continuous increase in Coal imports & may continue import till 2017
Globally, Coal prices have fallen down following market demand & Indian currency is under immense pressure; which is making Coal costlier for Indian industries. In spite of all above factors, Indian Coal import in 2013-14 has increased 10-12 per cent M-o-M & is expected to grow going forward also.
As per government reports, Ministry of Coal is anticipating India’s Coal demand to be around 769.7 MnT in FY14 which is almost same as FY13 & domestic supply to increase to 614.6 MnT and accordingly the gap between demand and supply would be around 155.1 MnT. However, industry experts are anticipating Coal imports to reach around 170-175 MnT in FY14 as India’s energy requirement is expected to rise. Some gas based power plants in India have converted into thermal power stations. Also, some of the mega power projects o Chinese equipment has failed on use of domestic Coal & they may seek imported Coal as an option to operate the plant.
As per government report, India has imported around 83 MnT of Coal in FY14 (till Sept, 2013). In the third week of August when INR touched 65 against the Dollar, it was anticipated that this may have its impact on the demand for the material which was not the case. Industry participant are of opinion that import requirement may remain intact for a while.