Adani, India’s largest power coal importer, recently predicted a pick-up in India’s power coal imports in 2019 and could maintain strong growth momentum over the next 10 years as Adani in India’s domestic coal is in short supply, Bloomberg reported. Vinay Prakash, chief executive of Adani Coal and mining, said in an interview that India’s coal imports in the new fiscal year are expected to reach 184 million tonnes, up 11% per cent from April 1 this year, while annual imports of overseas coal are expected to rise to 200 million tonnes over the next 10 years.
He said consumers in India’s coastal areas would also prefer imported coal because of higher domestic coal transport costs.
Meanwhile, Vinay Prakash points out that the group plans to build 1600 megawatts of coal-fired power plants in the eastern state of Chalkhand, which will be a major destination for Adani’s coal production in the Galilee Basin, Australia. In fact, in order to reduce the external dependence of coal, Indian Prime Minister Narendra Modi previously asked state-owned mining companies Coal India to increase domestic coal production, India’s imports of coal has declined for years.
However, demand for coal in India has recently picked up, and imports of coal have begun to rebound amid insufficient domestic coal production and limited capacity in India. According to Bloomberg, India has long relied heavily on coal-fired power generation, and although other markets around the world have gradually shifted to renewable energy, India’s coal demand will bring a lifeline to global coal exporters.