Demand growth for coal in India needs to be pacified
Coal is the most required energy source throughout the world. Demand for coal in the global market always remains high. The sectors such as steel, cement and power need coal for their existence. The demand for coal is increasing gradually and the government needs to take major steps in order to fulfill the requirements. Coal India Limited (CIL) being a Public Sector Undertaking (PSU) needs to look after the requirements of various sectors of the country.
CIL has started exploration work in both of it coal blocks located in the South east African country – Mozambique. Recently, international rating agency Fitch has pointed out that FDI in coal and natural gas projects in Mozambique were running at about US$ 5 billion a year, and that these two sectors alone would be able to give the country economic growth between 7% and 8% a year from now until 2015.
The two coal blocks, namely A1 and A2 are located at Motaize, in Tete Province of Mozambique have been registered under CIL’s African arm – Coal India Africana Limitada (CIAL).
CIAL had obtained a five year license for exploring and developing the coal mines of Mozambique in August, 2009. They had awarded an initial drilling contract in November, 2012.
According to the Coal Minister, Sriprakash Jaiswal, the coal blocks around the world should be acquired by the Indian coal miners in order to fulfill the needs and demands for the fuel in the domestic market. The fuel shortage in domestic market can be fulfilled by increasing imports.