(MENAFN- KNN India)
New Delhi, Jul 30 (KNN) In a landmark shift for India's energy sector, the country is gearing up to export an estimated 15 million tonnes (MT) of coal to neighbouring nations, according to a recent study by the Indian Institute of Management (IIM) Ahmedabad.
This move marks a significant transition for India, traditionally a coal importer, as it aims to strengthen its position in the global energy market.
The study outlines a potential export breakdown of 8 MT to Bangladesh, 3 MT to Myanmar, 2 MT to Nepal, and 2 MT to other neighbouring regions.
This strategic pivot is part of a broader initiative led by India's Ministry of Coal to reduce coal imports and boost exports, thereby enhancing the country's energy security and domestic coal production.
Recent data shows promising trends, with coal production in India experiencing an 11.65 per cent increase in the 2023-24 fiscal year.
Building on this momentum, the government has set an ambitious target of 1,080 million tonnes for the 2024-25 fiscal year. To facilitate this transition, an Inter-Ministerial Committee has been established to streamline the process of reducing coal imports.
The committee's mandate includes coordinating efforts across various ministries to identify opportunities for import substitution, with a focus on minimising non-essential imports while promoting domestically produced coal.
The government's strategy extends beyond import reduction, aiming to tap into the international coal market to generate substantial revenue and create employment opportunities within the sector.
This dual approach of reducing imports while increasing exports is seen as critical for ensuring India's energy security and shielding the country from global price volatility.
Economic benefits are expected to be significant, with increased coal production and exports potentially contributing to economic growth, job creation, and enhanced government revenues. Furthermore, this shift is anticipated to help conserve foreign exchange reserves.
A key project highlighting this initiative is the Maitree Super Thermal Power Project (MSTPP) in Bangladesh, a joint venture between NTPC and the Bangladesh Power Development Board (BPDB).
The project, with a capacity of 2X660 MW, requires 5 million tons of coal annually, to be supplied as per international pricing policies.
As India moves towards greater self-reliance and a stronger position in the global energy market, the implications for regional energy dynamics and economic partnerships could be far-reaching.
(KNN Bureau)
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