NEW DELHI: The Central government’s plan to completely rely on Coal India (CIL) for domestic needs and have zero imports seems to have toppled, with coal imports soaring 8.8 per cent to 233.56 million tonnes (MT) in 2018-19 amid domestic transport woes and rising power demands.
In 2017-18, coal imports were at 214.61 MT, according to provisional data by mjunction services, based on monitoring of vessels’ positions and data received from shipping companies. “...coal and coke imports during 2018-19 through 31 major and non-major ports are estimated to have increased by 8.83 per cent to 233.56 MT (provisional) as compared to 214.61 MT (revised) imported in 2017-18,” the joint venture between Tata Steel and SAIL, which also publishes research reports on coal and steel verticals, said in a report. Non-coking coal imports were at 164.21 MT in FY19, about 13.25 per cent increase over 144.99 MT recorded in FY18, while coking coal import was almost flat at 47.73 MT, against 47.22 MT in 2017-18.
“The double-digit growth in thermal coal imports during 2018-19 was on expected lines and caused by the coal shortage at power plants until recently. In contrast, the bearish trend in steel consumption and prices, especially during the fourth quarter, restricted coking coal import,” mjunction MD and CEO Vinaya Varma said.
The surge is so alarming that it has also forced CIL to start meeting power producers individually and find ways to help them cut their dependence on imports in 2019-20. It will also hold discussions with those contemplating imports this fiscal.
Meanwhile, steel companies have warned that imports of the fuel, which could drive up India’s goods trade and current account deficit, could rise further if adequate number of domestic washeries is not set up in public and private sectors.
233.56 MT
coal was imported in 2018-19, despite efforts to cut imports
214.61 MT
coal was imported in 2017-18, as per mjunction services