There are always two sides of a coin—an old adage—and it is making its presence felt in the Indian coal market too; that is reverberated with domestic supply getting excess of the demand.
In an interesting development—opposing the claims of domestic coal supply overcoming demand in India—the Maharashtra government has sought permission from the central government to import 2 MnT of coal from international markets due to the inadequacy of domestic supply.
As a consequence of the coal supply inadequacy, 2,000 MW of power had fallen short in the state, especially after excessive rains reduced coal supply from the Singareni Collieries Company Limited (SCCL). To overcome the shortfall, the state purchased 1,400 MW of electricity from various sources, and 600 MW was bought from power exchange.
Tenders will be floated for coal mining companies across the world to participate for the coal import, which will act as a back-up during inadequacy in domestic supply.
Leave a Reply