India's coal imports by power plants for blending down 44.3% on year in April-Nov

India imported 15.16 million mt of thermal coal to blend with its domestic produce during April-November of the current fiscal year, down 44.3% on the year, despite its overall coal-based power generation jumping 11.2% on the year during the same period, the country's federal coal ministry said Dec. 23.

India's fiscal year runs from April to March.

This could be attributed to the country's overall weak demand for international coal amid better domestic coal production. Power produced by domestic coal-based power plants during the same period reached 779.1 billion units up 8.4% year on year.

Notably, India's total power generation during the April-November period surged 7.71% on the year, the statement further said.

The ministry attributed the surge in power demand to unprecedented rise in temperature, delayed monsoons in the Northern region of the country coupled with the resumption of full commercial activities post-COVID.

In October, India extended its directive for all import-based coal power plants to run at full capacity till June 2024 amid higher power demand and inadequate domestic coal supply, S&P Global Commodity Insights reported previously. Earlier, these power plants were asked to operate at full capacity till October 2023.

In addition, generating companies were asked to blend at least 6% of imported coal until March to cushion the current gap between receipt and consumption of coal by the plants. The government's earlier notification had instructed all the domestic plants to blend only 4% of imported coal until March 2024.

The world's third-largest energy consumer witnessed a 7.1% year-on-year surge in power generation from April- November 2023 period.

India's coal imports in November

However, India's coal imports by the coal-based power plants surged slightly above 85% on the year to 5.9 million mt in November, latest data available at the Central Electricity Authority showed. This can be seen in sync with the India's recent improvement in industrial activities which in turn prompted more electricity demand in the country.

Indian power plants import coal ranging from low calorific value (CV) 4,200 kcal/kg GAR to mid CV 5,000 kcal/kg GAR for blending with indigenous stocks to meet demand.

The price of India-delivered 5,500 kcal/kg NAR was at $156.25/mt on Jan. 3, 2023, compared to $111.85/mt on Nov. 30, data from S&P Global Commodity Insights showed. The price was last assessed at $110.35/mt CFR India on Dec. 22.

Meanwhile, India has put 26 commercial coal mines under auction under its ninth round of commercial coal block allocation on Dec. 20, in a bid to strengthening its efforts to ramp up domestic output and attract private investments in the sector.