Budget 2013: FM says Coal blending only solution as coal imports to rise 185 million tonnes by 2016-17

MUMBAI: India's coal imports are seen rising to 185 million tonnes by 2016-17, driven primarily by the needs of the power sector, said Finance Minister P Chidambaram while presenting the Union Budget 2013-14.

Chidambaram said that the needs of the current power projects and those that will come up by 2015-16, leave the company with "no alternative" but to import coal and blend it.

Earlier this month, the government gave in-principle approval for coal price pooling that would ensure higher fuel supplies to stranded power project but also lead to an increase in power generation in the country.

The finance minister said that the country needs to reduce its dependence on coal to generate power in due course of time.