Coal India Ltd., or CIL, is likely to import 10 million tonnes of coal this fiscal to supply a minimum assured quantity of fuel to power companies under the Presidential directive, reports said, quoting CMD-designate S. Narsing Rao.
At present the company will be able to easily assure 60 percent of the committed supply and will take all steps to increase production. In case, it is not possible then the company will imports around 10 MT, he said. Besides imports, CIL may also think of diverting coal meant for e-auction to power firms.
He said the PSU would weigh various options of importing coal that will include direct imports, if required.
The development comes in the wake of the government issuing a Presidential directive to the Maharatna firm on April 3 to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80 percent of the committed coal delivery.
Rao, who is heading state-run Singareni Collieries, at present, will take charge of the company shortly.
The company is already battling on several fronts including delays in getting regulatory clearances for expansion and has missed the target in the just-concluded fiscal by recording 435.84 MT, compared to the revised target of 447 MT. For the current fiscal, the PSU has fixed the output target at 470 MT.
The PSU is the world's largest coal producer and accounts for 80 percent of the domestic production. I's production is almost stagnant for the last three years.
by RTT Staff Writer
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