CIL likely to take up 126 projects for its 12th Plan period, 78 being formulated already
Coal India Limited, world’s largest coal miner based in India might import 15 MnT of Coal to fulfill the needs of power units according to fuel supply agreement. CIL has already received interests from the IPPs (Independent Power Producers) and the state owned entities for 15 MnT of Coal. Around 55-60 companies including the private power producers such as Damodar Valley Corporation and state generation companies have showed their interest for Coal.
On the other hand, NTPC is likely to import Coal on its own and is not dependent on CIL. According to the CIL Director (Marketing) B K Saxena, “CIL has proposed to supply coal to NTPC from FY 15.”
Mr Saxena said, “CIL will float tender to select an agency (like MMTC, STC) who will import Coal on its behalf and the same will be completed within this fiscal. The coal supply agreement with buyers is for one year subject to review but for suppliers it will be for 18 months.”
CIL’s new FSA declares that it will be supplying 65% of the contracted amount from its domestic sources and only 15% will be supplied through imports with pass-on pricing model. According to this pricing method, CIL will charge its buyers for the imported coal at landed cost plus a service charge and there will be no subsidy in pricing. Buyers will have to pay around 90% of the coal value to CIL in advance.
Meanwhile, CIL will take up 126 projects with a total production capacity of around 438 MnT during its 12th Plan period. S Narsing Rao, Chairman of CIL says that the preliminary reports for 78 projects out of the given 126 projects have been already formulated.