Adani imports coal for three Indian producers

Adani imports coal for three Indian producers
Published: 02 August 2010

Adani Enterprises Ltd., India’s biggest coal importer, plans to import 400,000t of the fuel from South Africa for three major Indian cement producers.

Adani, based in Ahmedabad, will import the coal by the end of this year, an unnamed source said. The coal will be sourced as part of orders for 200,000t from ACC and 100,000t each from Grasim Industries Ltd’s cement unit and Jaypee Cement Ltd, he said.

India is increasing imports of coal as it tries to meet rising demand in an economy that has grown an average 8.4 per cent since 2004, straining capacities at roads, ports and factories. Asia’s third-largest energy user imported 7.6 percent more of power-station coal from South Africa’s Richards Bay, the world’s second-largest coal export harbour, in the first half of 2010, according to mjunction Services Ltd., a web-based trader.

Adani, which owns and operates India’s largest private port in the western state of Gujarat, can import coal at Mundra and Dahej. Adani Power Ltd., owned by Adani, will buy coal mining rights in Australia’s Queensland state from Linc Energy Ltd. for A$1 billion, the Australian said today.

India needs to double the pace of growth in power-station coal supply to help drive the country’s economic expansion, Credit Suisse Group AG said in a note on July 8. Supplies should grow as much as 11 percent from an average of 5 percent to 6 percent earlier to support expansion in gross domestic product of as much as 10 percent, the bank said.