Coal Mining Commodity Import 2012 Issues India

-azocommodity.com: Coal mining commodity import in India have been rise and lagged expectations with imports totalling 48.5 mt in H1 12. A number of issues continue to cap the expansion of imports: foremost is the poor state of finances at several state utilities and the depreciation of the rupee; the scarcity of rail wagons; as well as latent power demand remaining unmet through a series of power cuts.

Coal commodity output is weighed down by a combination of: delays in commissioning new units owing to political gridlock and budget constraints; severe and highly frequent outages due to ageing infrastructure; and variability in reservoir levels having a direct effect on hydropower generation, which contributes close to 22% of India’s total power generation.

Indian coal imports to pick up for the rest of this year, with H2 12 at 62 Mt as India has added 5.2 GW of electricity generation capacity between April and June.( Barclays)