Australia gets coal purchase inquiries from India
Australia is looking to sell more coal to India as the SC considers whether or not to cancel coal block allocation
- Nigeria seen as biggest rice buyer in 2019, behind China
- Demonetisation highly ethical move, not political: Jaitley
- Government, telcos meet this month to find solution to call drops, poor quality of service
- ITC launches four variants of Sunfeast Yippee noodles
- Most PCA banks meet priority sector lending goals for MSMEs, shows analysis
New Delhi/Mumbai: Australia is looking to sell more coal to India while the Supreme Court considers whether or not to cancel more than 200 coal blocks next week after declaring their allocation illegal.
“There are a lot more enquiries. We have set up programmes (to facilitate coal exports to India),” said Parag Shirname, Queensland’s trade and investment commissioner for India.
Queries for Australian coal have picked up since Monday, Shirname added.
Many Indian companies are increasing their coal imports amid a general shortage of the fossil fuel and ahead of the Supreme Court’s verdict expected on Monday.
The apex court this week ruled that the government’s coal block allocations between 1993 and 2010 were illegal in a case that concerns more than 218 coal blocks.
Amid the uncertainty, coal imports by India are seen getting bigger and more expensive.
Aditya Birla Group’s flagship Hindalco Industries Ltd has just started importing coal for its new aluminium plants, the company’s managing director Debu Bhattacharya said in a recent interview. But the plan is likely to come with a big freight bill as Hindalco’s plants are located far from sea ports.
Coal India Ltd, the world’s largest coal mining company is struggling to keep up with the growing Indian demand. It, too, has an import plan so that it can meet the requirements of its clients who have fuel supply agreements with it.
Traders and shippers have already spotted an opportunity and have started to talk up the market, predicting coal and freight prices would rise.
Australia has been targeting the Indian market for its mining, energy and resources products and a planned visit by Premier Tony Abbott to India next week would put the spotlight on trade between the two countries.
Bilateral trade relations are also likely to be discussed on the sidelines of a G-20 world leaders’ meeting slated to take place in Brisbane in Australia in November.
Also on the agenda for Brisbane is Australian uranium exports to India, Shirname added.
Editor's Picks »
- Future Retail’s Q2 result shows improvement in same-store sales
- Private insurance firms grow at the expense of LIC stuck with a sick bank
- Page Industries’s lofty valuations get a reality check in Q2
- Q2 results: Grasim’s Vodafone Idea stake is proving costly
- How Vodafone Idea’s $3.5 bn fundraising will impact telecom in India