Coal news and updates

Washed coal only if consumers want: Rao

September 16: Coal India Ltd (CIL) Chairman & Managing Director S Narsing Rao feels the company should embark on setting up a large number of washeries only if there is demand from consumers for washed coal.

“Ultimately, the demand for washeries should come from consumers and not suppliers, more so if the washed coal costs more,” Rao said.

He elaborated: “Tomorrow if a consumer says that I don’t want your washed coal as I am comfortable with raw coal, what happens to the investment made?”
 
“I am not attaching much significance to that but, at the same time, if consumers want these, then we should be in a position to offer the same,” Rao said.

On pointing out that CIL had committed in its IPO prospectus to set up 20 washeries and this value-addition programme actually inspired global investors and made the IPO a huge success, the CMD felt that setting up washeries was not a commitment of CIL.

“Were washeries a commitment from CIL? Anyway, it is not a major economic activity. I don’t know how anybody relates coal washing to profitability. In a monopoly, if you want to charge more money, you can. Why should you have to wash the coal and charge for it?” he said.

“I have not seen the prospectus, but I feel this (setting up washeries) is a commitment. There are some like environment, contracting, land acquisition etc related to that,” he added.

“Environmental clearances are key. Contracting is an internal issue. In any case, 7-8 washeries have been contracted and orders are being placed though there had been some delays,” Rao said.