Import of Coal

During the year 2010-11, about 8% of the total coal consumed by the Power Utilities was imported coal. Out of the total coal imported by the Power Utilities, a significant proportion of coal import was from Indonesia.With 10% blending of imported coal with domestic coal, the increase in cost of electricity generation is of the order of 3 paisa per unit for every US $ 10 / tonne increase in cost of imported coal.

Due to the prevailing shortage of coal from the domestic sources for meeting the demand of generation of electricity, import of coal is being resorted to. Increase in prices of imported coal is beyond the control of Government. Therefore, the Ministry of Coal is being insisted upon to enhance production of domestic coal in the country to minimize dependence on import of coal. Possibility of overseas mining/long term tie up for import of coal is also being explored by some of the Indian companies/Power Utilities.

This information was given by the Minister of State for Power Shri K.C.Venugopal in a written reply to a question in Lok Sabha today.