Coal news and updates

CIL to import about 2 MT of coal in FY 2015-16

State-owned Coal India will import about 2 million tonnes of coal, to be supplied to power producers, in the current fiscal.

"Coal India (CIL) will import 1.6 million tonnes of coal for power producers in financial year 2015-16," a source said.

CIL had earlier engaged MMTC through a competitive bidding for arranging such imported coal.

In the just-ended fiscal, CIL imported 0.48 million tonnes of coal for power plants, the source said.

Earlier this month, state-run MMTC had said that it has received orders for import of steam coal from CIL and Andhra Pradesh Power Development Company Ltd.

MMTC got the order to supply about 2.35 million tonnes of imported steam coal during 2015-16.

CIL had earlier asked power firms to contact its supplying companies in case they need to import coal through them for FY16.

"In order to make necessary arrangements for supply of imported coal, interested and eligible power utilities are requested to approach the supplying coal companies immediately with whom they have signed for further course of action," Coal India (CIL) had said in a notice.

The PSU further said that it offers to supply imported coal for the year 2015-16, under the provisions of fuel supply agreement (FSA) entered with the power utilities "in the post 2009 FSA model".

In terms of the Presidential Directives issued in 2012 and 2013, CIL board had earlier decided that under fuel supply pacts for new power plants commissioned after 2009, out of the minimum assured quantity (80 per cent of Annual Contracted quantity), 15 per cent shall be supplied from imported coal.

It was decided that such imported coal supply was to be made through a PSU importing agency under a back-to-back supply agreement with power plants opting to take imported supply from CIL.

source: http://economictimes.indiatimes.com