Date:14/11/2008 URL: http://www.thehindu.com/2008/11/14/stories/2008111456741600.htm

Business

Coal India to import 4 mt

Special Correspondent

KOLKATA: The board of Coal India Ltd (CIL), which met here on Thursday, has approved a first-ever proposal to import coal. Initially, about four million tonnes of coal is proposed to be imported. CIL is billed as the world’s single-largest coal producing company.

“A mandate has been received to import coal,” a source said adding that another public sector company, MMTC, would do the tendering on behalf of CIL. On its part, CIL will go ahead with the entire proposal only after receiving a firm commitment from the power utilities.

Higher landed price

CIL Chairman P. S. Bhattacharyya had announced in September his company’s plans to import coal. However, CIL, which produces over 80 per cent of the country’s coal, would do so only after getting firm orders, he had said. The price of this coal would be substantially higher than domestic coal. Further, port charges and CIL’s service charges will also be added to the price. The Indian power sector imported about 15 million tonnes of coal in 2007-08 and was scheduled to import about 20 million tonnes this fiscal. While CIL’s production has increased, it is still trailing targets. It produced 361 million tonnes in 2006-07 and is scheduled to produce 520 million tonnes by 2011-12. The demand-supply gap may increase once all the fuel supply agreements that CIL is set to sign with its consumers under the new distribution policy.