India’s thermal coal imports in February 2023 rose by 7% at around 11.4 million tonnes (mnt), as per Coalmint data. Imports increased sharply by nearly 42% y-o-y compared to 8.03 mnt in February last year. Imports have picked up on approaching summer demand.
The Union Ministry of Power (MoP) has issued a directive to the imported coal-based (ICB) power plants to resume operations at full capacity, keeping in view the expected surge in power demand in the summer season.
The decision was taken by invoking Section 11 of the Electricity Act, 2003 which states that a generating company, in extraordinary circumstances, will operate and maintain any generating station in accordance with the government’s directions. The latest directive comes into effect on 16 March, 2023, giving plants the time to import coal ahead of the expected surge in consumption, and will remain valid till 15 June.
India’s coal production in February stood at 86.6 mnt. India’s largest coal producer, CIL’s coal production increased by 7% y-o-y to 68.77 mnt compared to 64.26 mnt in February 2022.
During April 2022-February 2023, CIL’s production stood at 619.7 mnt, an increase of 14.3% over 542.4 mnt in the same period last year. Notably, with a quantum gain of 77.3 mnt, CIL is well set to breach the production target of 700 mnt in FY23.
India has been focusing on improving domestic coal production to achieve its FY23 target of 900 mnt.
Country-wise imports
India’s thermal coal imports from Indonesia stood at 6.37 mnt in February as against 4.30 mnt in January, up 48% m-o-m. Imports picked up 56% y-o-y in February.
Shipments from Australia fell to 1.51 mnt as against 2.30 mnt in January. This was a weak shipping month following a coal train derailment in Australia’s Queensland on 29 January resulting in the closure of the rail corridor from the state’s Bowen Basin to Rockhampton and Gladstone. Deliveries, however, restarted on 11 February.
Shipments from South Africa were recorded at 1.60 mnt compared to 1.41 mnt in January. India’s sponge iron sector, the key buyer of South African coal, opted for Australian 4600 NAR coal resulting in reduced demand. Imports of Russian coal, too, fell slightly to 0.81 mnt against 0.82 mnt in January. Amid sanctions, Russian cargoes are finding takers in Asia.
Company-wise imports
Qty in mnt
Adani Enterprises recorded the highest imports at 2.66 mnt, down 46% as against 1.83 mnt in January. Agarwal Coal recorded a 3% rise in monthly imports at 701,848 t followed by Adani Power at 428,020 t.
Port-wise imports
Qty in mnt
Krishnapatnam received the highest cargo volume of 1.37 mnt, followed by Mundra at 837,357 t. Dahej and Gangavaram ports received cargoes of 802,611 t and 731,505 t, respectively.
Outlook
With the government’s mandate for imported coal-based (ICB) power plants to resume operations at full capacity along with the mandate for coal-based power utilities to import 6% of their requirements may result in a rise in imports in peak summer.
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