Hike in coal import looms

Calcutta, Feb. 11: India may have to import more coal in 2011-12 as domestic production could fall well short of the target.

The gap between demand and domestic production is expected to increase to 81 million tonnes (mt) in 2011-12 compared with the initial projection of 51mt. Domestic production, estimated at 681mt in 2011-12, may come down to 630mt.

In 2008-09, the country imported 59mt and in the current financial year, import is projected at 65mt.

Both Coal India and the captive miners are expected to end up producing lower than the targeted amount. CIL chairman Partha S. Bhattacharyya has already gone on record saying that CIL has revised downwards its target for 2011-12 to 486mt from 521mt.

Production from captive mines is also expected to be lower at 96mt compared with the target of 119mt.

Only Singareni Collieries Company is likely to exceed its target of 41mt for 2011-12, with production of 47mt.

Excessive delays in statutory clearances for projects, problems of land acquisition and lack of rail transportation facility are cited as the prime reasons for this shortfall.

Domestic coal is available at 50 per cent lower price than imported coal.

Meanwhile, Coal India has appointed KPMG Advisory Services to prepare a corporate plan, with the mandate to become “a leading global player in the energy sector”.

KPMG will be working in six key areas, including improving operational efficiency, managing the scale of growth, customer orientation and expanding presence across the value chain.