Coal demand in the country is estimated at 696 million tonnes during the current fiscal while domestic production is only expected to be around 554 million tonnes, the Coal Secretary, Mr Alok Perti, said at an industry conference.

Earlier estimates had suggested that imports of around 135 million tonnes (mt) would be needed during the current financial year ending March 31, 2012.

Fresh estimates suggest that imports could actually be lower as state-owned Coal India Ltd (CIL) has been asked to liquidate coal stocks of up to 28 mt lying at pitheads during the current fiscal for augmenting supplies to the power sector.

If this were to happen, the gap between demand and supply position in the country is expected to come down to 114 mt.

The demand-supply gap has gradually widened from about 50 mt in 2007-08 to 83 mt last fiscal.