Coal imports to reduce if CIL production goes up: ICRA
08/07/2015 11:03

Rating Agency ICRA has said that dependence on coal imports will reduce up to eight per cent if Coal India (CIL) meets the production of 1,000 million tonnes by 2020, certain sections of the media reported.

Commenting on the issue, ICRA Vice President Corporate Sector Girish Kadam told the media, "Measures are taken by CIL to double output to 1,000 MT by 2020. If CIL is able to sustain seven per cent annual growth in production during FY16 till FY20 and both the schedule II and schedule III coal mines are able to achieve their peak-rated capacity in a timely manner.”

“Overall dependence on coal imports could come down significantly to about 8 per cent by FY20," he added.

However, according to the agency, dependence on coal imports is likely to remain high in the near to medium term till FY19 and gradually moderate thereafter, given the overall challenges in coal mine development as well as risk of delays in ramp up of coal output by the allottees of schedule II and III mines.