The Hindu : Business : Coal India to import 4 million tonnes

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Tuesday, Aug 11, 2009
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Coal India to import 4 million tonnes

Indrani Dutta

KOLKATA: The public sector Coal India Ltd (CIL) is planning to import around four million tonnes of coal within this fiscal, CIL Director, Marketing, A. K. Sarkar, said. Given the lower calorific value of Indian coal, the proposed quantum is equivalent to six million tonnes of domestic coal.

CIL Chairman P. S. Bhattacharyya told The Hindu that the issue of coal imports would be taken forward after the PSU board approves the policy formulated by CIL in this regard. This time, CIL proposed to float global tenders for importing this coal unlike last year when it had acted as a mere facilitator to the entire process which was handled by MMTC, Mr. Bhattacharyya said.

In 2008-09, the New Coal Distribution Policy (NCDP) mandated CIL to meet the country’s coal requirements, if necessary through imports. Eventually, only 2.22 lakh tonnes of coal was imported for the Haryana Power Development Corporation, although initially the import requirement was pegged higher.

For this year, an approach paper has been prepared which is to be CIL’s policy for coal imports. “Issues such as pricing — whether it would be based on CIF or FOB — would need to be addressed,” Mr. Sarkar said.

International coal prices now average at around $70 a tonne.

Of the 435 million tonnes of coal that CIL plans to raise in 2009-10, around 313 million tonnes go to the power sector. Firm fuel supply agreements (as required under the NCDP) have been signed for 306 million tonnes and the Central Electricity Authority wants to reserve six million tonnes for new power projects.

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