Coal Imports To Jump 70% Next Fiscal: Govt.

NEW DELHI: India's coal imports are likely to jump 70% in the next fiscal, higher than the previous estimate of a 25% rise, as delays in environmental clearances has hit mining projects, coal minister Sriprakash Jaiswal said. The country is likely to import 142 million tonnes in 2011-12, much larger than the 104 million tonnes shortfall indicated by the minister just two months back.

Imports for the current fiscal are expected to be nearly 84 million tonnes.

The country's domestic production continues to fall short of the target due to hurdles such as environmental clearances, land acquisition problems and low investments.

In recent times, coal producers have been looking for acquiring assets abroad to help meet the shortfall. "The import dependence is increasing rapidly. Speeding up environmental and forestry clearances for coal projects would help in curtailing imports," Jaiswal said.

Other issues which need to be addressed include strengthening coal evacuation facilities and port infrastructure facilities. This may impact power generation projects and earnings of steel, power and cement firms.

The minister also said that a meeting of Group of Ministers (GoM) to sort out issues related to coal mining in no-go areas classified by the Ministry of Environment and Forests will be held within the next three-four days.

"The prime minister has called for a meeting of the ministry of forests and environment and ministry of coal to set up a GoM," Jaiswal said.

India's coal production is projected at 630 million tonnes in 2011-12 against a demand of 713 million tonnes. Jaiswal further said there is a need to allow permission to mine in these areas for meeting country's coal requirement.

Source : economictimes.indiatimes.com