India may get good news: Indonesia will decide on coal exports today, if the ban continues, 8 states will be affected

50 percent of imported coal is from Indonesia. If the ban continues, there will be an impact on supply and prices.

Indonesia, the world’s largest coal exporter, has banned coal exports from last Saturday, but the good news for India is that the Indonesian government is going to reconsider its decision on Wednesday. Indonesia’s government has decided to reconsider the export ban after 10 major mining companies were confident of providing enough coal for domestic consumption.

At present, coal-based power plants in India generate about 181 GW of electricity daily, out of which about 16.7 GW is generated from power plants in the country’s coastal areas where coal is imported. 50 per cent of the coal imported into the country comes from Indonesia alone.

Energy sector experts say that if Indonesia continues with its decision to ban its exports, then in the third week of January roughly 8 gigawatts of electricity generation will be affected, that is, about 12.33 million units of electricity will be affected daily.

Under the new circumstances, if power companies may have to import more expensive coal from other countries including Australia or South Africa and its effect can also increase electricity rates. The Association of Power Producers says it takes two months for coal to reach power plants from Indonesia once it is ordered and paid.

Option to import from other countries is also available
Energy analyst Riya Vyas said that if the ban continues, then power companies have the option of importing from Australia, Africa, USA and other countries. Coal-laden ships going to Bangladesh or other Asian countries can be bought by paying a higher price. Last October, India’s power companies bought 2 million tonnes of coal loaded on cargo ships from Australia at a discount of $ 12 to 15 per ton, such a possibility is still there.