India may have to import more coal in 2011-12 as domestic production could fall well short of the target.

The gap between demand and domestic production is expected to increase to 81Mt in 2011-12 compared with an initial projection of 51Mt. Domestic production is estimated at 681Mt in 2011-12 may decrease to 630Mt.

Excessive delays in statutory clearances for projects, land acquisition problems and lack of rail transportation are cited as the main reasons for the shortfall. Domestic coal is 50% cheaper than imported coal.