Coal news and updates

CIL may not need to resort to imports in 2013-14

September 18: Coal India Ltd (CIL), which has started doing the spadework for importing coal to supply to the power utilities, may not require to import in the current fiscal (2013-14) as there are sufficient stocks available, the company's director (marketing) B K Saxena said on September 18.

"This year, we may not require to import coal as we have sufficient stocks with us. The imports may have to be made in the next year (2014-15)," Saxena said on the sidelines of the 39th Annual General Meeting (AGM) in Kolkata.

Saxena said, as per the fuel supply agreements (FSAs) signed till date, the power generation companies have expressed intention to procure up to 15 million tons of coal in the next financial year.

"Our actual imports would depend on the final response received from consumers and receipt of advances before we float tenders," Saxena added.

He said the company is taking care of some formalities for selecting a state trading agency from among MMTC, MSTC, STC and PEC as its importing arm. However, the imports will be finalised only against confirmed orders and 90% advance payments from the power sector customers.

To a question, he said the additional requirement of imports occurred due to the signing of the FSA with new and upcoming power plants.

Earlier, company sources had said CIL was expected to float a global notice inviting tender (NIT) to procure 6-8 million tons (mt) of imported coal for supply to power plants by the end of September or early October.

As per the norms under FSAs, CIL is to supply 15% of the total supply commitment to the power plants through imports.