The very fact that 200-250 mt of coal are coming into India as imports to supplement the domestic supply of 650-700 mt is proof enough that there is unmet demand in the country. In the long term, this demand is expected to grow by around 4 percent per annum up to 2040 or so. In about 15-20 years, coal imports will increase by another 150-200 mt, resulting in total imports of 400mt. And the present coal mining processes are not likely to plug that demand gap, leading to substantial volumes of imports. Even if Coal India considerably increases its production over the coming years, not all demand can be met from domestic supplies due to logistics problems.
Also, there is a requirement of imported coal on quality grounds. For the domestic power plants, it is always better to blend the imported material with domestic coal as this will increase efficiency and longevity of the boilers. Thus, in contrast to popular perceptions, Atanu Mukherjee, President, M N Dastur & Co (P) Ltd, tells Arindam Bandyopadhyay that there is huge demand for coal in the country where domestic supply is not going to be met in the long term.