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India sends first coal consignment to Bangladesh from Kolkata port

Prime Minister Narendra Modi with his Bangladeshi counterpart Sheikh Hasina

As India, the fourth largest coal producer in the world, opens up exports of this critical raw material, its neighbouring Bangladesh was among the first to receive a consignment.

The Daily Star reported that “the first consignment of nearly 3,800 tonnes of coal — for Rampal Thermal Power Plant in Bangladesh — has left India.”

Also read: Rampal power plant: 3,800 tonnes of coal from India on the way

The consignment, sourced from Dhanbad, left on July 2 from Syama Prasad Mookerjee Port in Kolkata.

The newspaper said that the consignment is expected to be unloaded at Mongla port and sent to the captive jetty of the Rampal power plant. About 20,000 tonnes of coal will be sent every month from to Bangladesh the Kolkata port once the 1320MW Rampal plant runs in full capacity.

Meanwhile, a report Thomson Reuters Foundation said that Bangladesh cancelled “plans to build 10 coal-fired power plants,” due to rising costs for the fuel and increasing calls from activists to base more of the nation's power on renewable energy.

About 8 per cent of the country's current electrical power comes from coal, but until last year the nation had plans to significantly increase that percentage by building at least 18 coal-fired plants, the report said.

Also read: Bangladesh scraps plans to build 10 coal-fired power plants

Traditionally, India along with China, Japan, South Korea among others, have been importing coal.

In June, the public sector behemoth Coal India Ltd allowed buyers to export coal bought from the miner through e-auctions, in what it called a "first of its kind" and a major policy shift, news agency Reuters reported. India has been a net importer of coal. Traditionally, India along with China, Japan, South Korea among others, have been importing coal.