September 08, 2008

India will need 55% more coal by 2012 – B&K

Investment bank Batlivala & Karani said that India would need 55% more of the fuel by 2012. Batlivala & Karani, citing data from Crisil Ltd, an Indian unit of Standard & Poor’s, said that India will need 730 million tonnes in 2012 compared with 470 million tonnes in 2007 while imports will rise by 70% to 68 million tonnes.

Batlivala & Karani said that "The ongoing capital expenditure boom in the power, steel and industrial sectors makes the implied jump in demand for coal in India an unquestionable reality and coal remains the cheapest and most abundant fuel.”

India’s USD 854 billion economy, Asia’s fourth biggest, has expanded at an average of 8.6% in the past 4 years. That’s boosted demand for coal to feed power plants and steel makers.