The Hindu Business Line : Coal India plans to bid for overseas blocks

"We are currently exploring a few opportunities for acquisition of coal blocks in Australia, Canada, South Africa and Argentina. We may float an SPV (special purpose vehicle) with SAIL and Vizag Steel for the purpose," the CIL Chairman, Mr Partha S. Bhattacharyya, told newspersons here today.

e-auctioning

Earlier addressing the members of Merchants' Chamber of Commerce, he said that the company was planning to sell 20 per cent of its total production through the e-auction route, ensuring higher price realisation, during the next fiscal. The company has set a target of e-auctioning 36 million tonnes or 10 per cent of production during 2006-07.

"We are planning to double the sales through e-auction from 36 million tonnes to 72 million tonnes", he said.

According to him, the realisation through e-auction is 34 per cent higher than the notified price during the current season. This is against a 48 per cent higher realisation witnessed during 2005-06.

Meanwhile, the company is targeting to enhance production by 157 million tonnes during the Plan-XI. Roughly 25-30 per cent of the same is expected to be outsourced. To enhance own capacities, the company has set an investment target of Rs 15,600 crore from internal accrual during the Eleventh Plan.

Talking about outsourcing, Mr Bhattacharyya said that three projects, including one under Mahanadi Coalfields Ltd, were recently cleared by the CIL authorities.

"However, there are some political resistance to the outsourcing which we might have to take into account in the due course," he said hinting a possible slow down in the outsourcing plan.

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