The unprecedented growth in coal consumption by power utilities during the past five months and inability of the state agencies to import coal for small buyers has meant that the country?s largest coal producer, Coal India Ltd (CIL), will have to import about four million tonne of coal for the first time this fiscal to tide over possible shortages.
?The ministry of power feels the small power producers may not want to pursue import of coal on their own. In a meeting with the power ministry on August 3 it was decided to import four million tonne after the ministry felt there would be confirmed demand. There are 7-8 states which are facing coal shortage but have not started the process of imports,? CIL chairman Partha Bhattacharyya told reporters on the sidelines ICC Coal Summit.
?This is uncharted territory for us because we have never imported before. We are taking a paper to the board on August 8 to determine the process after ascertaining that there are buyers for the imported coal and are willing to pay the price,? he added.
There have been intermittent complaints from thermal power on the non-availability of coal to the sector. Last month NTPC said its plants are facing the threat of closure due to paucity of coal.
The power firms, however, have imported far less coal then the amount they were to lift, thereby putting a strain on domestic resources.
According to sources, against the targeted imports of 5.49 mt of coal imports during April-July 2008, power firms imported only 2.48 mt. A shortfall of 3.01 mt in imports has meant an equivalent shortfall of 4.5 mt of indigenous coal.
Sources add that even around 85 % of planned import would have built up coal stock at utilities at least to the tune of 9 mt, which as of July depleted to 4.556 mt with 44 thermal power stations identified by CEA as carrying critical coal stock.
Imports by NTPC itself during the current fiscal are at 30% of plan, even less than the national average of 45%. The growth in coal consumption by utilities during July was 11% which negated the growth in dispatch from CIL at 10% compared to corresponding period.
Coal requirement for the power utility is expected to grow at a CAGR of around 10% during 2007-08 to 2011-12.
?We supplied 115.6 mt of coal in the first five months compared to the tune of 114.99 mt set by planning commission. We supplied 5 mt of coal more over past year and is on track to supply 292.93 mt of coal to thermal power plants,? the chairman said.
Coal demand for the country for 2008-09 is pegged at 555 mt. CIL is expected to produce 405 mt of coal, Singareni Collieries Company Ltd (SCCL) 41.5 mt and other producers 50.79 mt. This puts the domestic production at 497.29 mt. The balance 58 mt of coal is expected to be imported of which 19 mt is coking coal and 10 .45 mt is non coking coal.
Coal India which controls most of the nation?s supply of the fuel, also plans to acquire mines in Indonesia, Mozambique and Australia, Bhattacharyya said. CIL aims to produce 520 mt of coal by terminal year of the XI plan period (2011-12) at a growth of 8.2 %.