The Hindu Business Line : Govt examining plans to allow CIL to import coal

In a bid to meet the increasing demand for coal, Government is examining whether the public sector behemoth Coal India Ltd (CIL) could be allowed to import coal and sell it to the domestic customers.

However, following the recent Supreme Court order stating that price discrimination through e-auctioning method violates the Constitution, the modalities of selling the imported coal is to be determined suitably, sources said.

Policy Decision

"The question is whether CIL will have to sell the imported coal at market determined prices through e-auctions or the company has to stick to notified prices as in the case of domestically produced coal. This has to be a policy decision by the Government," sources said.

"Currently the issue is at a planning stage. One of the key issues that needs to be decided is how to route the imports. Should Coal India import on its own or get the imports done through a subsidiary company?" sources said.

As of now, CIL functions as the holding company for eight subsidiary companies. There are seven coal producing companies, namely, Northern Coalfields Ltd, South Eastern Coalfields Ltd, Western Coalfields Ltd, Mahanadi Coalfields Ltd, Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Central Coalfields Ltd, and the eighth subsidiary is Coal Mining & Planning Development Institute Ltd.

Earlier, sources pointed out, the plan was to set up one more subsidiary company, Coal Videsh Ltd, that would acquire stake in coal blocks abroad and also import coal to cater to domestic customers. However, since Coal Videsh plans are still awaiting the final Government nod, alternative proposals are being considered.

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