Russia to export more coal to beat shortage in India

Tribune News Service

New Delhi, October 19

Russia’s Energy Ministry signed an agreement this week with India’s Steel Industry Ministry to increase Russian coking coal supply to India up to 40 million tonnes per year.

The deal was inked at the Russian Energy Week Forum, held from October 13 to 15 in Moscow, reported the Russian media.

According to Russian Energy Minister Nikolay Shulginov, Russia currently supplies around 80 lakh tonnes of all types of coal to India.

The agreement is also meant to stimulate enterprises in Russia and India in the development of coal deposits, the development of coal logistics and infrastructure, the promotion of R&D in production, as well as education and training for the coal industry.

The world’s third-largest coal importer, India, is currently struggling with coal shortages. Coal accounts for around 70 per cent of the nation’s electricity generation. Most of India’s coal-fired power plants have critically low levels of inventory amid growing electricity demand.

A widening gap between soaring international and domestic coal prices has also seen imports decline sharply in recent months.