Import and Export of Coal

Subject – Geography

Context – Coal prices may rise until Indonesia clears the air on export ban

Concept –

Import of Coal

As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs based on their commercial prudence.
Coking Coal is being imported by Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality.
Coal based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders are importing non-coking coal.
Coke is imported mainly by Pig-Iron manufacturers and Iron & Steel sector consumers using mini-blast furnace.
India imports around 300-400 million tonnes of coal, primarily from Indonesia, Australia and South Africa.
Coal India produces over 600 million tonnes of coal for domestic consumption.
China is the biggest producer and consumer of coal.

Export of Coal

Despite India being among largest importers of coal, India exports coal to its neighbouring countries mainly Nepal, Bangladesh and Bhutan.
The latest India export data shows India exported coal to the world worth USD 54 million in Q1 and USD 35.9 million in Q2 of 2021. Nepal had the largest share of 80%, Bangladesh of 12.5% and Bhutan of 6.9% in 2020.

To know about Coal, please refer September 2021 DPN.

To know about Coal Crisis in India, please refer October 2021 DPN.