| "With sky rocketing prices and uncertain availability of high quality coking coal, the company has decided to go for 'stamp charging facility' which would be imported from China. This will help the company reap the benefit of using low cost coking coal without compromising on the quality," said company officials. |
| "Once the stamp charging facility with technology for heat recovery oven is implemented, coke oven plants set up with heat recovery technology would be capable of producing power at nominal cost, which may be taken up as forward integration project at a later date once full reform in power sector is in place," the officials added. |
| The company, the only exporter of coke from India, already exported coke of value Rs 70 crore since its first ever export to Brazil in July 2004. It will save Rs 7 crore by way of duty free import of capital goods under EPCG Scheme and the proposed project will be more competitive in terms of cost of project and pay back period. |
| GNCL order book position boasts of a an export contracts of FOB value Rs 135 crore to be executed within March 2006, besides various other negotiations at advanced stage. |
| The other advantage of export is natural hedge against currency risk, as the country is dependent on imported coking coal. |
| In a parallel development, subsidiary Gujarat NRE Australia (GNAL) commenced production from the Balgownie Seam at Russell Vale in its NRE No l Colliery located near Sydney which was acquired only on December 03, 2004. |
| The company commenced production much ahead of the projected schedule, which aimed at producing coal at an annualized rate of one million tonne per annum by 2005 and thereafter increasing it to over two million tonnes per annum. |
| GNCL was also exploring long-term business opportunities between New South Wales and India. |
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