Import of Low –ash- Coal

Demand of coal is higher than the current level of domestic supply of coal in the country. The entire demand of coal is not met from domestic production as the supply of high quality coal /coking coal (low-ash-coal) in the country is limited and thus no option is left but to resort to import of coking coal. Further, coal imported by power plants designed on imported coal and high grade coal required for blending purposes cannot be substituted by domestic coal.

As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty. Taxing of coal imports by Indonesia is an internal matter of that country and the Government of India does not interfere in such matter.

Coal India Limited (CIL) is supplying coal to its linked Plants under a long term bi-lateral Fuel Supply Agreement (FSAs) in accordance with Annual Contracted Quantity (ACQ) and their requirements including the plants based in Tamil Nadu. In the current year, CIL has supplied coal to the tune of 15.08 Million tonnes to the power plants based in Tamil Nadu upto November’21, registering a growth of about 50%, in comparison to last year same period figures of 10.09 MT.

Further, in order to maximize coal supply to the thermal power plants of TANGEDCO from its nearest sources, recently CIL has rationalized linkage quantity of 1.825 Mill Te. from ECL to MCL. This will help TANGEDCO to augment coal dispatch from domestic sources. Singareni Collieries Co. Ltd. (SCCL) has also supply 5.913 MTPA of coal to NCTPS & USTPS of TANGEDCO for their upcoming units under long term linkage.

Elevenwasheries are being set up with total capacity of 40 MTY by CIL. Out of this, 10 washeries are for Coking Coal totaling throughput capacity of 30 MTY in 2 phases. 1 washery is being set up for beneficiating non-coking coal, with capacity 10 MTY. In SCCL, one non coking coal washery with 1.0 MTPA operational capacity is working on BOO (Build Own Operate) basis.

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in RajyaSabha today.