Coal India Limited (CIL) seems to get a sigh of relief as its prolonged concern of disposing off its mounting surplus coal stocks is likely to ease. The prospective export destination is none other than the immediate neighboring country—Bangladesh.
The export prospect stems from India’s NTPC having entered into Bangladesh by setting up the Bangladesh India Friendship Power Company (BIFPC), a 50:50 joint-venture company between NTPC and Bangladesh Power Development Board (BPDB), to construct two 660 MW coal-based power plants at Khulna in that country, at an estimated expenditure of USD 2 billion.CIL is optimistic of the prospect that the BIFPC will prefer Indian coal over the other import variants.
CIL , last year, had sent a team of officials to Bangladesh for studying the feasibility of exporting coal to that country. The team learned that coal mined from Mahanadi Coalfields Limited (MCL), the largest CIL subsidiary, could be sent to Bangladesh from the Paradip port in Odisha.
Despite coal demand picking up in India, CIL still has 69 MnT of coal stocks as carryover from the last year. CIL is eyeing the South Asian region to dispose off the stock.
The current installed power generating capacity in Bangladesh is at 12,339 MW, out of which coal-based generation accounts for only 250 MW or approximately two percent of the total power generation. But, according to that country’s Power System Master Plan, formulated in 2010, the installed capacity will rise to 40,000 MW, out of which 15,000 MW will be coal-based.
Source: CoalMint Research
According to the inputs received, CIL is expected to conclude a coal export agreement with the Bangladesh government this year.
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