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Coal India can become a major market player the international coal market.

September 15, 2009

Analysis of:Coal India to buy assets of Rio Tinto | timesofindia.indiatimes.com

Coal india is the biggest producer of coal in the world and biggest supplier of coal in India. It captures the 90 % market of Indian demand. It will not have much influence in Indian market however it will give key competition in seaborne thermal coal market.

Indian power projects have difficult days ahead on account of coal availability

July 22, 2009

Analysis of:India giant whets dry-bulk appetite | www.tradewinds.no

India is unlikely to meet the power generation target primarily because of coal supply (domestic and imports). The company's who is able to ensure the domestic coal mining project execution or ensuring the imports only will be able to derive benefit from it.

Bonanza of coal resource in India has been opened for global mining majors as well as coal consuming Indian companies.

August 12, 2008

Analysis of:CIL invites bids for 18 old mines | economictimes.indiatimes.com

Global mining companies are likely to encash this opportunity to enter into India through this indirect route easily. The coal supply may get enhanced through these mines and will ease the Indian’s demand-supply gap to some extent although in long run there will still be substantial import. Indian steel making companies and power generating companies would also  rush for this opportunity, to secure their future coal requirement, thus reducing the dependence on coal import and port-rail related bottleneck.  

The demand-supply gap of coal is likely to surge in India, and the growth of imported coal may continue to be in double digit for next few years.

August 7, 2008

Analysis of:Forest ministry rebuts coal claims; says shoddy reports delay approval | www.livemint.com

    Presently India produces around 430 MT of coal and imports  50 MT per year. India will need over 700 MT of coal by year 2011-12. Since the production in existing mines is not witnessing any significant growth, the delay in  execution greenfield coal projects (both coking as well as energy coal) will lead to more depdendence on Imported coal for power producer and steel making companies. In order to hedge  the coal prices fluctuation, the Indian steel and coal based power generating companies need to further agressively invest in coal assets abroad to ensure long term supply security.

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