After 2 years of fall, growth in coal imports
After two flat years of fall, India’s coal imports grow 8.1% in FY18. There was sustained demand for coking coal from the steel sector and for steam or thermal grade coal from the power and cement sectors.
The government wanted more use of domestically extracted coal but the supplies were let down by transportation, especially shortages of railway rakes and much more. The domestic production is likely to stagnate, as there is no visible improvements in availability of railway rakes or infrastructure to evacuate coal.
The states of Tamil Nadu and Andhra Pradesh have imported several cargoes of coal since the beginning of this year due to no coal availability and the imports will be rising higher and higher if proper action is not taken.