CIL’s Coal Export Plan to Bangladesh Likely to Become Successful

Coal India Limited’s (CIL) plan for exporting coal to Bangladesh is likely to become successful as indicated by the recent developments in the neighboring country although concrete evidence is not available.

India’s NTPC Limited is in the process of setting up a 1,320 MW thermal power plant in a partnership with Bangladesh Power Development Board at Khulna in Bangladesh. A new company, Bangladesh India Friendship Power Company, with 50:50 shareholdings between both the companies has already been established. The plant will require at least 3 MnT of coal every year.

Export prices of CIL are expected to be competitive with the Indonesian variants due to lower freight rates on account of proximity with the neighboring country that raises hopes of CIL to be successful in entering into the Bangladeshi coal market.