With an ambitious 88000 MW power generation targeted by the end of 13th FYP Indian power sector seems faced with a scarcity situation. Coal India repeatedly failing on its commitment to supply import seems to be the only option.

According to Planning commission estimate coal imports is likely to touch 185 million tonnes almost 20% of the international dry fuel trade amid widening demand supply deficit.

Remarkably the projected level of imports of around 185 million tonnes is large keeping in mind that international trading in coal is only around 900 million tonnes to 1,000 million tonnes of the total consumption of over 6,000 million tonnes world over.

International availability of coal likely to be restricted due to concerns on climate change. Moreover International prices of coal are also likely to remain high because of taxes which are being imposed by several coal producing countries.

Source - Strategic Research institute

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