Coal India hopes for export deal with Bangladesh this year

State-owned Coal India is planning to conclude an agreement with the government of Bangladesh this year to start export of coal to that country.

Demand for thermal coal recently began picking up, but Coal India still has a 69 million tonne (mt) stock as carryover from the previous year’s production. Its officials are now eyeing the South Asian region, to clear the stock and for future contracts.

Bangladesh is an immediate consideration, as thermal power giant NTPC, the largest client of Coal India, has entered the country by setting up an Bangladesh-India Friendship Power Company (BIFPC). This is a 50:50 joint venture (JV) between NTPC and the Bangladesh Power Development Board (BPDB), to construct two 660 Mw coal-based units at Khulna, for an estimated cost of $2 billion. Read More…