The Hindu Business Line : CIL plans coal imports to meet surging demand

New Delhi, Sept. 5 Coal India Ltd plans to import coal for the first time to meet surging domestic demand and could source up to 4 million tonnes (mt) of thermal coal from overseas this year. Import of coal is aimed at tiding over a shortage of the commodity faced by power generators, especially small-sized players.

“This is uncharted territory for us because we have never imported before,” CIL Chairman, Mr Partha S. Bhattacharyya, said here on Friday. The company may buy up to 4 mt of coal from overseas after buyers confirm their orders, he said at the sidelines of a coal meet here.

“We plan to do about 4 mt this year. We are yet to decide on the process. It will be mainly for small buyers who can’t import on their own,” he said.

Coal outlook

The Government estimates that the country will import around 60 mt of coal annually by 2012 to boost supplies. The company’s output, which is currently around 380 mt, is expected to rise to 405 mt next year and 520 mt by 2012.

CIL is also scouting to acquire mines in Indonesia, Mozambique and Australia, Mr Bhattacharyya said. CIL — along with NTPC Ltd, Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd and NMDC Ltd — has already formed a joint venture company to buy coal assets overseas.

Sector regulator

Meanwhile, the Coal Secretary, Mr H.C. Gupta, said at the seminar that the Government is considering setting up a regulator for the sector. “We are of the view that a regulator is necessary for the industry now because there has to be an agency to monitor the activities of a growing number of players in the industry,” Mr Gupta said.

The Government has been awarding coal blocks to private and public sector companies for captive use in the last two years in a bid to raise production, Mr Gupta said. “By the end of the current Five Year Plan (2007-12), we hope to have captive coal production of 105 mt compared with 25 mt currently,” he said.

Related Stories:
Power crisis looms large as key thermal stations starve for coal
Coal shortage: CIL finds fault with power sector

More Stories on : Coal | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page