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Thermal coal import down 40% in April-December on higher domestic output

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NEW DELHI: Import of coal for blending with domestic fuel at power plants declined by more than 40% in the April-December 2023 period compared to a year ago in spite of a 10% increase in thermal generation as a sharp rise in home production offset higher drawdown of inventories.
Latest government data shows coal import for blending declining to 17 million tonne (MT) during the April-December 2023 period from 28.7 MT in the previous corresponding period amid the spike in thermal power output. At the same time, domestic coal-based generation rising to 872 billion units (BU), an increase of 7% from 813.9 BU in the previous corresponding period.
The double-digit growth in thermal generation against 7% expansion in overall power output indicates two things: One, the country will be able to meet coal demand for power generation from domestic sources, as announced by coal minister Pralhad Joshi. Two, the dependence on coal will keep rising, in spite of an ambitious programme to expand renewable energy capacity.
Domestic coal production rose 16% to 608 MT in the April-December 2023 period compared to the previous corresponding period. Buoyed by rising domestic production, Joshi had last month told TOI India will reach a billion-tonne coal production mark and stop thermal coal import in the next financial year (April 2024-March 31, 2025). He also said domestic production will meet demand of new power plants being planned.
Power minister R K Singh had in November said India will need to add 30 gigawatts (GW) additional coal-fired generation capacity on top of 50 GW already underway to be able to meet future electricity demand, which has posted a growth of 8% in the first half of the financial year. The central electricity authority estimates a peak power demand of 256 GW in 2024-25.


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