NEW DELHI: India can export around 30 million mt/year of coal to Bangladesh and Sri Lanka by 2030 from the mines located in the eastern part of the country, according to the draft version of the “Integrated Coal Logistics Plan” recently issued by the federal coal ministry for stakeholder consultations.
“All efforts are on to further enhance production and export of thermal coal by the year 2025-26,” Coal Minister Shri Pralhad Joshi said recently.
India currently exports around 1 million-2 million mt of coal every year to its neighboring nations of Bangladesh and Nepal with no exports to Sri Lanka.
According to the document, reviewed by S&P Global Commodity Insights, coal with a 2,950- 3,850 kcal/kg GAR calorific value is well placed to replace Indonesian coal in the Bangladesh market and “create a long-term sustainable export-oriented coal market” for Indian producers.
An analysis in the document found that the price of this coal on a CFR Bangladesh basis would be between Rupees 2,534-2,976/mt ($30-$36/mt).
The average price at which Bangladesh imported 5,000 kcal/kg GAR coal in the first five months of 2023 was $106.62/mt, Platts data from S&P Global showed.
Platts assessed 5,000 kcal/kg GAR thermal coal at $97.95/mt May 26, on a CFR Bangladesh basis.
According to the report, annual thermal coal demand for power generation in import-dependent Bangladesh is forecast to rise from the present 2.3 million mt to 21 million-25 million mt by 2025 to fuel the upcoming coal-based capacities.
