India's coal imports may see further dip on self-sufficiency, renewable energy push: Fitch
The global rating agency has said India's dependency on imported coal may continue to decline as the government moves ahead on the path of self- sufficiency and as renewable energy output continues.
NEW DELHI: Global rating agency Fitch has said India's dependency on imported coal may continue to decline as the government moves ahead on the path of self-sufficiency.
"We expect India’s thermal coal imports to continue to fall as the government maintains its push for self-sufficiency and as renewable energy output increases," the global rating agency said.
"This is amid lower-than-expected demand because of reduced offtake from financially stressed power distribution companies and subdued industrial performance," Fitch Ratings said.
In September, the import went up temporarily as generators stocked up the fossil fuel ahead of winter, it said.
Coal import for October came in flat at 16.65 million tonnes, underpinned by cautious buying by consumers due to high prices in the overseas market, according to the data from mjunction services, a leading name in the e-auction space.
The figure for October 2016 was 16.68 million tonnes (mt).
Import of coal declined 6.37 per cent to 191.95 mt in 2016-17, mainly because of higher production by Coal India Ltd (CIL). CIL accounts for over 80 per cent of the domestic coal production.