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India ponders pioneering
coal exports
INDIA INDIA could begin coal exports to Bangladesh, be fully resolved until at least October,” Agrawal
Nepal and Bhutan as part of the government’s said.
efforts to counter China’s economic influence in Coal India, which produces 80% of India’s
South Asia. coal, aims to ramp up output to 1bn tonnes by
Coal India plans to export up to 3% of its 2024.
output to the countries as part of its “Neigh- The company has until now exported small
bourhood First” policy, although the exports quantities to neighbouring countries on an
are unlikely to take place in 2021 because of the ad-hoc basis, but never on a permanent com-
country’s current coal supply crisis. mercial basis.
The state-owned company plans to export Rising coal output in India does not sit well
to Bangladesh, Nepal and Bhutan, according to with the government’s pledge at COP26 to
draft plans it sent to the coal ministry, Reuters increase the share of electricity generation from
reported. renewable sources to 50% by 2030 and to achieve
“We would have ideally wanted to start net-zero emissions by 2070.
exporting this financial year (ending March It has also pledged to reduce its projected car-
2022), if not for the energy crisis,” Coal India bon emissions by 1bn tonnes, to 50% renewa-
chairman Pramod Agrawal told Reuters, not- bles share of power generation and to reduce the
ing the current priority was to address domestic carbon intensity of its economy by 45% by 2030.
demand. India’s dramatic intervention at COP26
Under the proposal, “3% of Coal India’s changed the conference’s commitments from
annual production will be earmarked separately “phase out” to “phase down.”
for exports” with the main focus on encouraging India expects peak coal use in power genera-
bulk trade for the long term. tion is not set to happen until 2040.
Exports would allow Coal India to widen its India has added 113 GW of coal-fired power
revenue sources and to strengthen New Delhi’s capacity since 2011, while 33 GW of thermal
ties with regional neighbours. power projects are under construction and 27
However, Agrawal warned that the first ship- GW are in the pipeline stage.
ments would be unlikely until the end of 2022 The government forecasts coal plant capac-
because of the country’s coal shortages. ity to grow to 267 GW by 2030 from 208 GW
Though domestic coal supplies have now. New coal-fired plants would be expected to
improved, inventories at nearly half the fully operate for at least 30 years, cementing the fuel’s
operational utilities in India are under 25% of role in the global energy mix beyond the middle
federally mandated levels. of the century.
“I don’t expect the energy crisis in India to
Week 06 09•February•2022 www. NEWSBASE .com P9
