Coal imports set to rise by 20%

According to ICRA estimates, India´s coal import is set to go up significantly in the next financial year. The estimate for 2015-16 is 220-240 million tonne (mt), against the current year´s projected import of 185-190 mt. However, the trend of continuously falling prices should keep the bill under control. Despite the rising volume, the annual import bill stayed around $17 billion over FY12 to FY14. In the current financial year till August, it was $7.2 billion. ICRA has projected the full year´s bill around $15 billion. For FY16, the volume could rise 15-20 per cent. With prices likely to remain under pressure, ICRA feels the bill might be around $18 billion. Recently Supreme Court cancelled 200-odd coal block allocations and these are to be auctioned. Simultaneously, new power capacities would be commissioned in FY16. Together, these developments will add to coal demand and this will have to be met through higher import.