Bengaluru: India's state-run company, Coal India Ltd, have plans to export coal to neighbouring countries; Reuters learned from sources as well as documents. The world's largest coal miner, supplying its output within the country for decades, decided to export it to Bangladesh, Nepal and Bhutan, a draft policy sent to the coal ministry said.
Three per cent of the total annual production will be exported and will encourage bulk trades for the long term. The plans to export the item will diversify Coal India's revenue streams and boost the Indian government's bettering ties with neighbours. Reuters reports that the move is a part of India's "neighbourhood first" policy to parry China's spreading economic influence in South Asia.
The proposal was tabled at an internal board meeting on corporate strategy in late 2020. However, a prevailing shortage in the country could push exports to late this year, Coal India Chairman Pramod Agarwal indicated Reuters. India's three-quarters of electric power comes from coal, and the shortage has induced up to 14 hours per day power cuts in some states in the north.
Meanwhile, Agarwal said he is not expecting the energy crisis in India to be resolved before October this year. Despite improvement in domestic coal supplies, coal inventories of the most fully operational utilities in the country are below 25 per cent occupied.
Coal India is ramping up its production to meet 1 billion tonnes output in 2024. It had exported small quantities before, but shipping bulk would be for the first time. It had allowed domestic customers to export coal last year.
Though Coal India offers coal at higher prices than domestic rates, it is cheaper than major exporters like Indonesia, South Africa, etc. However, Indian coal is generally seen as of lesser quality.
India is the world's second-largest coal producer, consumer and importer.