‘The Coal in India 2019’ report

 

For: Mains

Topics covered:

• Key findings of Coal in India report, significances and way ahead

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News Flash

‘The Coal in India 2019’ report is prepared by Australia’s Office of the Chief Economist.

 

Significance

The report provided a detailed examination of recent developments in India’s energy, electricity and mining policies and how they could impact on its future demand for thermal coal.

 

Key Findings under Coal in India report

• India is one of the most appealing markets for Australia’s thermal coal to meet its increasing energy requirements.
• Australia is not a significant supplier of thermal coal to India.
• The share of coal in India’s electricity mix was rising.
• Indonesia was main supplier for India for thermal coal.
• Australian exports were going to China, Japan and South Korea.
• The growth in Australia’s coal exports to India has coincided with the substantial rise in Indian coal imports, only exports of metallurgical coal to India have risen substantially.
• Mining Equipment, Technology and Services Sector (METS) and oil, gas and energy resources (which includes coal) have been identified as two of the five industry growth centres by the Australian Government as part of its Industry Innovation and Competitiveness Agenda,
• India’s coal consumption was likely to continue increasing over the next decade.
• India is a large coal producer and its domestic production is growing.
• India’s energy giant Adani’s 16.5 billion dollar Carmichael coal mine and rail project in Queensland which was the most advanced project could help India. At its full capacity, it could produce up to 60 million tonnes of thermal coal a year.
• Adani’s Carmichael mine and GVK’s Alpha mine were two advanced projects that could provide long term reliable supplies of coal to meet the growing energy needs of India.

 

Factors that had led to limited Australia’s thermal coal exports to India

1. Australian price which exceeded the level that Indian electricity companies.
2. India’s coal importers have sourced supplies from the low-cost producers in Indonesia that supply lower energy content coal and have lower shipping costs for delivery to India.

 

Way ahead

• India’s desire to improve the productivity of domestic coal mines through advanced technology may present an opportunity for Australia’s Mining Equipment, Technology and Services Sector (METS).
• Coal India Ltd (CIL) was already interested in working with Australian companies to upgrade the technology employed in their coal sector.
• India’s projected growth will keep resources trade high, which makes economic relationship extremely important
• Australia as a reliable supplier of LNG and high quality thermal and metallurgical coal, explore emerging opportunities to support India’s need for minerals critical to their economic, defence and space capabilities.
• The recent approval of the Adani Carmichael mine could just be the start of a new trade that can bring wealth and jobs to Australia.

 

Coal India Limited

 

 

• Coal India Limited (CIL) the state-owned coal mining corporate came into being in November 1975.
• CIL today is the single largest coal producer in the world. The company contributes to around 82% of the coal production in India.
• CIL is a Maharatna company. The company is headquartered in Kolkata, West Bengal.
• Coal India Limited (CIL) produces coal through seven of its wholly owned subsidiaries.

1. These are Eastern Coalfields Limited (ECL)
2. Bharat Coking Coal Limited (BCCL)
3. Central Coalfields Limited (CCL)
4. Western Coalfields Limited (WCL)
5. South-Eastern Coalfields Limited (SECL)
6. Northern Coalfield Limited (NCL)
7. Mahanadi Coalfields Limited (MCL)

 

Important Info

• India is the world’s third-largest coal consumer.
• China and the United States are at the first and second-largest coal consumers.
• India’s imports grow by 84 million tonnes in the past five years.

 

Source: ET

 

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