Government's plan to cut coal imports takes backseat
New Delhi, April 27
India has urged its states to step up coal imports for the next three years to build up inventories and satisfy demand, four sources said, a move set to benefit global prices of the fuel, already running high because of war in Ukraine.
The decision to boost imports underscores the severity of India’s fuel crisis as coal inventories are at the lowest pre-summer levels in at least nine years and electricity demand is seen rising at the fastest pace in nearly four decades.
India could drive up global demand until 2025, as Power Minister RK Singh has set a longer timeline for a federal push to increase imports that had until now been seen as a temporary measure. “The states were asked to continue importing because the private sector will take till at least early 2025 to produce significant output,” said an official who attended Singh’s meeting with state officials. — Reuters
Inventories at nine-year low
- The decision to boost imports underscores the severity of fuel crisis as coal inventories are at the lowest pre-summer levels in at least nine years
- States were asked to sign long-term import deals to ensure supply and lower prices, as well as buy rail wagons to resolve the logistics problems
- Higher coal imports could benefit miners such as Indonesia’s Adaro Energy, Australia’s Whitehaven Coal Ltd, and Adani’s Carmichael mine in Australia
