MMTC eyes stakes in coal mines abroad

To set up 6 free trade warehousing zones across India

State-owned Metals and Minerals Trading Corporation (MMTC), the largest Indian international trading company, plans to acquire stakes in coal mines in Australia, Indonesia as well as in the domestic market.

S D Kapoor, chairman and managing director, MMTC, said that international trading companies acquire stakes in mines to facilitate procurement of ferrous metals, which in turn helps mining firms enter into long-term partnership.

There are two crucial factors in acquiring a stake in coal mines "" the price of coal and the location. International coal prices are softening and it is the right time to make the move, he added. MMTC expects to start six free trade warehousing zones (FTWZ) across the country at an investment of over Rs 600 crore.

Kapoor, said, "We have identified six FTWZ. These are Greater Noida, Kandla, Haldia, Ennore, Mumbai and Kochi. The first two locations to be developed under this project will be Greater Noida and Kandla, but the land has not yet been identified."

It will take at least 18 months to develop the FTWZs. According to the norms, setting up an FTWZ will require 100 acres of land and an investment of Rs 100 crore.

However, it may vary depending on the price of land in each location. He also said that the state trading corporation will set up a special purpose vehicle for each FTWZ.

Setting up FTWZs will facilitate bulk imports and exports, he said. MMTC is also planning to enter the carbon credits segment. "But nothing concrete has been done in this regard," he added.