DOMESTIC CARE Ratings: Expect coal production to grow by 2-3% at 730745 mt in FY22 CARE Ratings in its latest coal update expects production to grow by 2-3% in the financial year FY22. India's coal production has risen by 19.3% yoy to 54.4 million tonnes (mt) in July 2021 over a low base.
Further, CARE said that the "sharp uptrend in seaborne coking coal prices during the June quarter is likely to continue and we expect stronger prices in the second half of CY2021 as the global supply-demand balance continues to remain tight."
The country's coal despatch increased by 21.7% yoy to 62.3 mt in July due to higher demand from the power and the cement sector.
India faces twin challenges of decarbonising power sector, meeting rising energy demand: Coal Minister
"Demand for both thermal and coking coal is expected to remain strong as global economic activities improve after the covid-19 downturn in the second half of CY2021," CARE added.
The Indian economy faces twin challenges of fulfilling its commitments for decarbonising the energy sector as well as meeting the country's rising power demand, which would primarily be
18 | CCAI Monthly Newsletter August 2021
