India is the fifth largest producer of coal in the world and third largest importer of coal in the world. According to the custom’s data, India’s coal imports have increased by one third of its previous import and were around 135 MnT in FY 13. Whereas, in FY 12, India’s total coal imports including coke and briquettes along with thermal and coking coal was around 105 MnT.
Coal Imports in India
India’s coal imports have grown up to around 43% in May 2013 in comparison to that of last year corresponding period owing to the increased demand from the power stations and steelmakers. In May, 2012, around 11.75 MnT of coal was bought by Adani Enterprises Ltd, Tata Group, JSW Group and Steel Authority of India Ltd, which has risen to 16.77 MnT in May, 2013, according to customs data. This amount of coal imports by the named steelmakers also included 13.39 MnT of steam coal and 3.38 MnT of coking coal at 23 ports.
Increased coal imports are also an effect of the current account deficit (CAD). India is currently at 5% more of CAD than the GDP. Depreciation in Rupee has further worsened the deficit. Further the imports are having a chance of growth and might be touching around 185 MT by 2017.