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Friday, 01 January 10
COAL INDIA TO START IMPORTING DIRECTLY


According to sources, the coal major has already finalised tender document to import four million tonnes thermal grade coal for supplies to NTPC. The total import (for power sector) is expected to touch 8 mt in 2010-11.

It may be mentioned that the New Coal Distribution Policy requires Coal India to import coal to bridge the demand-supply gap of thermal coal in the country beginning 2008-09.

However, in the absence of adequate infrastructure and expertise in international trade, CIL had nominated MMTC Ltd for importing on its behalf.

May replace MMTC

But this is just the beginning. If everything goes according to plan, CIL may replace MMTC as India's largest coal importer in the next couple of years. The initiative will receive a shot-in-the-arm if CIL's recent efforts to strike “strategic alliances” with major producers across the world becomes a reality.

MMTC and three other central PSUs – State Trading Corporation, PEC Ltd, MSTC – currently buy much of the approximately 60 million tonnes imported coal requirement of the country. Of the total imports, approximately 30 per cent is coking coal used in the steel industry. To read more  The Hindu



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