Coal news and updates

Gupta Group plans coal mining venture in Australia

Amid the coalgate controversy at home, Gupta Group, a city-based business house, has plans to start a coal mining venture on contract basis in Australia. A team led by Kylie Bell, the Australian Trade Commissioner for South Asia, had called on this company on Wednesday as a part of her trip to Nagpur.

Without disclosing much on the deal, Bell said Nagpur's Gupta Group was among those planning a venture in Australia that was inviting overseas investment in the mining sector. She was speaking to newspersons after a meeting with officials of Maharashtra Airport Development Company (MADC) at Mihan-SEZ. The company's chairman Padmesh Gupta confirmed the plans but preferred not to divulge further.

This company, which has a now non-operational power plant at Chandrapur, was also granted a coal block in the same area. This mine was among those that came under the coalgate scanner but was later spared. However, operations did not start as the state government approval to the mining lease was still awaited, said a source.

Meanwhile, Bell said, "in Australia most mines are held by private companies and acquiring some of them costs billions. After the acquisition, a royalty has to be paid on the output. The system is different from that prevalent in India where most coal mines are held by the Coal India Ltd, a public sector undertaking."

She added a major investment in mining as well as fuel sectors was also expected in the next year. She said currently Indian investment in Australia stood at $10 billion while Aussie investment in India was only $5billion. Keen to raise that, the Australian government was encouraging businesses there to invest in India. The country was also keenly following the political scenario in the light of investment prospects, she said.

She also met officials from some local education institutions and Nagpur University apart from calling on the local business associations.

Air Asia in talks for Nagpur presence

Low cost carrier Air Asia that has partnered with Tatas in India is being wooed by MADC for starting operations in Nagpur. First round of talks was held by the state government following which the airlines submitted a basic presentation about its operations.

MADC officials are working on fixing another meeting to take the matter further. However, the entire deal was at a rudimentary stage, said a source in MADC.

Source: The Times of India