Coal news and updates

CIL set to import 15 MT coal for power producers

World's largest coal miner, Coal India Ltd, is likely to import 15 million tonnes of coal for power utilities as part of meeting the fuel supply agreement commitment.

"We have received interest for 15 million tonnes from IPPs (independent power producers) and state owned entities," CIL Director (Marketing) B K Saxena told shareholders at the AGM.

Speaking to reporters here, he said some 55-60 companies that include mostly private power producers, Damodar Valley Corporation and state generation companies have shown interest to import coal on behalf of them.

However, NTPC has not sought any import assistance from CIL and instead drawn its own import plan.

"We propose to supply the imported coal to them from 2014-15 financial year," Saxena said.

Coal India will float tender to select an agency (like MMTC, STC) who will import the coal on its behalf and the same will be completed within this fiscal, he said.

"The coal supply agreement with coal buyers is for one year subject to review but for suppliers it will be for 18 months," Saxena said.

According to the new FSA Coal India will supply 65 per cent of the contracted amount from domestic sources and another 15 per cent will be done through imports with pass-on pricing model.

Pass-on means, in other words, CIL will charge buyers of imported coal at landed cost plus a service charge and there will be no subsidy in pricing.

Buyers will have to pay at least 90 per cent of coal value in advance to Coal India.

Source: Agencies