CIL may consider joint ventures for distribution

Kolkata: Coal India Ltd (CIL) may consider joint ventures for supplying imported low-ash thermal coal . The coal major has been allowed to import such coal grades for sponge iron, glass, cement sectors. Currently working out its import strategy, CIL is looking forward to market five million tonne imported coal during 2008-09. The imports will begin after entering into the fuel supply agreements (FSA). The total demand for such coal is estimated to be not more than 20 million tonne annually.

“The possibility of doing the business through a joint venture having core competence in overseas trade did cross our minds. The issue was also touched upon during our discussions with MSTC and MMTC,” a senior company official said. “However, we may explore the joint venture route further if the actual demand settles beyond five million tonne mark.”

Meanwhile, Coal India is in the final stages of inviting tenders from private sector for setting up coal washeries. The scheme aims at supplying washed coal from the open cast mines to all non-pithead power stations.

“We are in the final stages of identifying locations of these refineries of capacities ranging from 2.5 to 10 million tonne and are expecting to invite the tenders in early 2008-09,” the official said.

As per the scheme, CIL will finance the cost of setting up the washeries while private parties will be run and maintaining the same in exchange of washing charges. The project is also expected to wash coal at a substantially lower cost compared with the existing CIL washeries.

The private washeries in Western India are currently charging in the range of Rs 40 per tonne compared to the washing cost of Rs 240 a tonne in CIL washeries.