Govt permits coal exports

The Cabinet has permitted the export of coal as the country’s power plants have a surplus, said Information Minister Mr Ashwini Vaishnaw. Power plants that have access to coal supply will be permitted to export up to 50% of their allocation and use coal flexibly across group companies. The move to allow export of domestic coal comes as the country’s coal-fired power generation, which typically accounts for about 75% of India’s electricity output, has fallen on an annual basis in seven out of 11 months this year, the most since 2020. The move will also benefit the country’s top coal miner, Coal India, which accounts for about three-quarters of the country’s production. India is the world’s No. 2 coal producer and consumer after China. The policy will allow domestic buyers to secure long-term coal supplies through auctions without end-use restrictions, except for coking coal, which will not be offered under the scheme, as per a report.

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