Coal India is facing demand supply gap of 450 million tonne as per Letters of Assurance (LoA) issued so far and its production plan for the next 10 years for consumers with whom it has already signed supply agreements.
The mismatch has widened as CIL failed to expand existing mines and take up new projects due to restrictions imposed by the Ministry of Environment and Forests (MoF). Adding to this, the LoA for supply is linked to certain milestones to be achieved by the respective companies. Even on achievement of 50% as per LoA the company will face a supply shortage of 200-250 million tonnes. To full fill this demand supply gap the company is looking another option of importing coal from global suppliers.
The mismatch has widened as CIL failed to expand existing mines and take up new projects due to restrictions imposed by the Ministry of Environment and Forests (MoF). Adding to this, the LoA for supply is linked to certain milestones to be achieved by the respective companies. Even on achievement of 50% as per LoA the company will face a supply shortage of 200-250 million tonnes. To full fill this demand supply gap the company is looking another option of importing coal from global suppliers.
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