State-owned CIL is examining opportunities to export coal with high ash content or high grade fossil fuel to the neighbouring nations, Parliament was informed today.
“CIL (Coal India) is exploring opportunities to export Indian coal having high ash content or high grade coal to the neighbouring countries as the demand for such type of coal is comparatively less in the domestic market,” Minister of State of Coal, Power, New and Renewable Energy and Mines Piyush Goyal said in a reply to the Rajya Sabha.
A very small quantity of such coal is exported to these countries, he said.
Since domestic demand for thermal grade coal is picking up with depletion in stock and CIL is augmenting supply to power plants to reduce imported coal consumption, exporting lower grade coal in the current market scenario is not contemplated, he added.
Indian non-coking thermal coal of lower calorific value with higher ash content are not comparable with quality of coal usually traded in international market.
However, because of the cheaper price of Indian thermal coal in comparison to coal from other countries there is a demand for such coal in the neighbouring land locked countries like Nepal and Bhutan as also Bangladesh.