India should source more minerals from Australia: Assocham

With coal shortage affecting power generation, India must use its strategic relationship with Australia and ongoing visit of Prime Minister Tony Abbott to source more dry fuel as the Modi government focuses on manufacturing to revitalise the economy, Assocham today said.
"The visit by the Prime Minister Abbott has given impetus to mutual goodwill. We must use this goodwill to tap more minerals, including coal from Australia, rich in natural resources, to fuel our economic growth," Assocham President Rana Kapoor said.
Kapoor also suggested areas where the two countries can step up cooperation to leverage each other's expertise and take bilateral ties to the next level. These include sectors like solar energy, mining, agriculture, sports, tourism, science, innovation and technology.

In sync with its growing economy and increasing energy requirements, India has emerged a big importer of coal. The country's coal imports increased by 17.9 per cent to 171 million tonnes (MT) in 2013-14 from 145 million tonnes in 2012-13, the industry chamber said.
In a bid to prevent any shutdown of power plants, coal major CIL has asked its arms to rush additional stocks to feed the power utilities reeling under acute fuel crunch.
The development is part of emergency measures taken by the Maharatna firm to avoid shutdown of nearly one-third of the thermal power plants that have coal stocks of less than four days.

As per Central Electricity Authority, 29 out of 100 thermal power plants across the country as on September 1 have been left with super critical stock of less than four days.

"While Coal India can be asked to step up its production, the growing needs make it imperative to go in for more imports... What better source than Australia whose top leadership is engaged with strategic relationship with India," Kapoor said.
Coal India produced just 34.54 million tonnes of coal in August, missing the target for the fourth consecutive month, even as acute fuel shortages continue to hit power generation.

Australia is blessed with rich mineral resources which rake in over USD 150 billion to its exports. Its mineral wealth includes iron ore, coal, gold, copper, alumina/aluminum and nickel.