Indian coal import drops

By Er Audy Zandri

India's Import of coal has declined by 13 percent in February from the month before, port data revealed.

A New Delhi based ship broker said that data from 21 of the 28 ports listed by Interocean Group revealed that importers led by Adani Enterprises Ltd, Bhatia International Ltd, NTPC and Steel Authority of India received a total of 9.34 million tons of steam and coking coal last month, down from the total import of 10.7 million tons in January.

NTPC Chairman and Managing Director Arup Roy Choudhury stated that it is positive for India's state budget to import less coal, which might make imported coal slightly cheaper marginally.

"(Because of) new laws and change of goal posted by Indonesia and other countries, the coal from there has become frightfully expensive for the power sector and any addition of this goal increases the cost of energy. Today with the state electricity boards? financial health not being very good, they are unable to buy this power," he said as quoted from NDTV.com.

"So first of all whatever I had planned earlier as the amount of imported coal that I will use has substantially reduced. My boilers can use up to 30 percent of imported coal along with domestic coal but due to cost compulsions, we are keeping it at 10 percent, we are using 10 percent of imported coal now," he concluded.

Editing by David Mustakim