Coal consumers may need to import 83 mt by 2012

Even when China is aggressively tapping all possible sources of coal globally, the coal ministry has said that major consumers like steel, power and cement utilities may need to import. This is because the revised estimate shows the demand and supply gap at 83.33 million tonnes (mt) by the end of the 11th Plan period as against the earlier projection of 51 mt.

Sources in the coal ministry told “There has been an increase in demand, but supply is not matching with it. This has put pressure on the government, companies as well as captive blocks to enhance production. Further, the government has approved the formation of International Coal Ventures Ltd – a consortium company of various public sector undertakings – to acquire coking coal and high quality thermal coal properties abroad.”

Sources said production and availability of coal were affected due to issues over land acquisition, rehabilitation and resettlement (R&R) and delay in forestry and environment clearance.

The ministry came out with a comprehensive document in this regard on Thursday. It said, according to the original 11th Plan document, indigenous coal production in the terminal year (2011-12) would be 680 mt. However, according to the mid-term appraisal, coal production will only reach 629.91 mt.

The compounded annual growth rate (CAGR) was originally projected to be 9.56 per cent in the 11th Plan period against 5.62 per cent in the 10th Plan period. But, according to the the mid-term appraisal, the projected CAGR in the 11th plan is estimated at 7.89 per cent.

All India coal production grew 6.87 per cent in the first two years of the 11th Plan. According to the mid-term appraisal, the annualised growth in the first three year may be 7.23 per cent.