INDIAN COAL

INDIAN COAL

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India is the world’s fifth-largest coal producer but also the steam coal market’s largest buyer – accounting for 19% of global imports (169 MMT) in 2015. Indonesia, South Africa, and Australia top the list of India’s thermal coal suppliers. With India’s government committed to the country’s complete electrification, the coal fleet will continue to grow strongly. IHS Market predicts India will spearhead future Asian demand for steam coal with imports reaching 181 MMT by 2020 and steadily increasing through 2040. In addition, India imports a substantial amount of metallurgical coal from Australia and coking coal from China.

You can find the latest Indian coal market data, news, and insight through the IHS Indian Coal Report. Available through our APAC and African Coal Market News & Analysis service, the report provides:

 
  • Key price indices:
    • Indian CFR (5,500kc NAR) East and West Coast
    • India East Coast CFR (5,000kc/4,200kc) GAR
    • India West Coast CFR (5,000kc/4,200kc) GAR
  • Indian import and export statistics for metallurgical, steam and petcoke
  • Indian production and consumption data for metallurgical, steam and petcoke
  • Analysis of major producers, producing regions, transportation costs, infrastructure, policy
  • Analysis of the latest Indian coal market news: Briefs, tenders, stocks, contracts

First, the country’s planned shift to supercritical and ultra-supercritical power plants after 2017 favors continued dependency on high-quality coal imports needed to run those plants. Indian coal, which has high ash content and low calorific value, presents a challenge for the efficient functioning of supercritical boilers. Second, India’s infrastructure for transporting coal from inland deposits to its two dozen coastal power stations remains poor. The share of India’s coastal-based power, which operates completely on imported coal, is expected to increase from the current 17% to 23% by 2030. 

State-owned enterprise Coal India is the largest coal mining company in the world. The coal sector is a major source of revenue for states and the central government. Also, while renewable energy capacity is dramatically increasing, coal still provides around 70 percent of the country’s electricity.

Last year, the Modi government sought to boost the domestic coal mining sector with a series of commercial auctions. The government has also repeatedly delayed the implementation of pollution regulations for coal plants, effectively throwing the dirtiest coal plants a lifeline.

As the third-largest producer of carbon dioxide emissions in the world today with an economy that’s poised to see massive growth in the future, what happens to India’s energy mix will have a significant impact on the entire planet and its inhabitants.