India's coal import slumps to 209 MT in 2021-22

Coal imports, which had reached a peak of 248 Million Ton (MT) in 2019-20, declined continuously during the next two years to 215 MT in 2020-21 and further to 209 MT in 2021-22, noted the Coal Ministry in an official statement. 

Despite the steep rise in actual demand for coal from 956 MT in 2019-20 to 1027 MT in 2021-22, coal imports have not increased.  Coal imports grew at a compound annual growth rate (CAGR) of 22.86 per cent during the period 2009-10 to 2013-14.  At this CAGR, coal imports would have reached 705 MT in 2020-21 and further to 866 MT in 2021-22. 

"The import of coal could be checked only by sustaining increased domestic supply over the years," noted the Coal Ministry. 

It further added that India's coal production has increased from 716 MT in 2020-21 to 777 MT in 2021-22 resulting in an increase of 61 MT.  Therefore, despite a steep rise in actual demand for coal from 906 MT in 2020-21 to 1027 MT in 2021-22, coal imports were contained due to increased domestic dispatch from 691 MT in 2020-21 to 818 MT in 2021-22.  

Domestic dispatch has not only increased to the power sector but also to the non-power sector by 101 MT in 2020-21 to 104 MT in 2021-22.

The Coal Ministry further explained that the decline in coal imports during 2021-22 is largely due to a decrease in imports by the power sector which came down from 45 MT in 2020-21 to 27 MT in 2021-22, a decline of almost 40 per cent. 

"The decline is more steep if we compare coal imports by power sector in 2021-22 to pre-covid year of 2019-20 when such import was 69 MT. This is despite the fact that total thermal power generation in the country increased to 1115 BU in 2021-22 from 1032 BU in 2020-21, an increase of 83 BU in absolute terms and  almost 8 % in percentage terms," read the statement. 

Meanwhile, coking coal import was 57 MT with a growth of 11.65 per cent during 2021-22 which is largely used in the steel sector.

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