CIL may import 10MT coal in FY13 to meet power firms needs
Coal India may import 10 million tonnes of coal this fiscal to meet the obligation of supplying a minimum assured quantity of fuel to power companies under the Presidential directive, its CMD-designate S Narsing Rao said today.
April 09, 2012 / 12:13 IST
Coal India may import 10 million tonnes of coal this fiscal to meet the obligation of supplying a minimum assured quantity of fuel to power companies under the Presidential directive, its CMD-designate S Narsing Rao said today.
"If required, Coal India (CIL) may import 10 million tonnes (MT)," Rao who is heading state-run Singareni Collieries, at present, told PTI.Rao said the company will first see as to how much it can increase its production and then "will do imports if that is inevitable."The development comes in the wake of the government issuing a Presidential directive to the Maharatna firm on April 3 to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80% of the committed coal delivery.Also read: CIL may sign fuel pacts with 50 power firms including NTPCRao said given the present position the company can easily assure 60% of the committed supply and would take all steps to enhance production. In case, it is not possible then the imports "would be roughly 10 MT".Rao, who will take the charge of the company shortly, said the PSU would weigh various options of importing coal that will include direct imports, if required.He added that apart from imports, the company may also think of diverting coal meant for e-auction to power firms.The company is already battling on several fronts including delays in getting regulatory clearances for expansion and has missed the target in the just-concluded fiscal by recording 435.84 MT against a revised target of 447 MT.The PSU has fixed the output target at 470 MT for the current fiscal. Talking about the present target, Rao said that in view the past performance of the firm the "production target of 470 MT does not look to be good enough"."470(MT) itself is a tall number given their past performance. That is around 35 MT incremental. I do not think that in any particular year they did so much," he said.However, he added that the state-run company will not leave any stone unturned to meet it.The PSU is the world's largest coal producer and accounts for 80% of the domestic production.It's production is almost stagnant for the last three years. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
