COAL & MINES

Coal India lifts embargo on exports

In a major development, state-run Coal India Ltd (CIL) has lifted the embargo on coal exports under its e-auction sales policy. Now coal purchasers, including traders, can export the coal bought through this route.

This assumes significance given that CIL is India’s largest coal miner, with the allocation under spot e-auction and special spot e-auction accounting for 46 million tonnes (mt) of coal in FY21.

“The country’s largest coal producer and supplier has lifted the embargo on exporting coal procured through spot e-auction and special spot e-auction outlets. This is a first of its kind development since the introduction of spot e-auction in 2007,” CIL said in a statement on Friday.

With global shift to green energy to address growing environmental concerns, the Indian government is pulling out all stops to harness coal reserves within the next three decades. India has the world’s fourth largest reserves and is the second-largest producer of coal.

“The existing clause ‘coal procured under e-auction is for use within the country and not for export’ has now been amended, opening the door for export of the dry fuel in two auction categories,” the statement added.

CIL has a coal production target of 670 mt for the current financial year. India’s overall coal requirement is expected to go up to 1,123 mt by 2023 from the present level of 700 mt.

Source
Livemint
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