Coal India Ltd is thinking of new ways to reduce its stockpiles. Coal India established negotiations with Bangladesh officials to discuss coal exports into the country. Exporting to Bangladesh would help reducing the Indian coal inventory, which is already over 80 million tonnes when we combine pitheads and power plants.
The Indian government has not yet released its target for Coal India but it is giving signs that it may reconsider it. The company is supposed to reach an annual production of one billion ton by 2020, but lower-than-expected demand by utilities is dragging down that objective and contributing for rising stockpiles.
Last July, India agreed to build a 1,320-megawatt coal-fired power plant in the Bangladeshi soil under a bilateral agreement of cooperation.