SAIL approaches govt for more coal blocks

In an effort to get at least 25-30% coking coal from indigenous sources, Steel major SAIL has approached the government seeking allotment of more coal blocks.

"We want to source at least 25 to 30% coking coal from indigenous sources. Our target is to get 7/8 million tonne coking coal from indigenous sources," SAIL Director (raw materials & logistics) A K Pandey told PTI here.

At present, out of its total requirement of 14 mt, the company has managed to source about 3.5 mt of coking coal mainly from Coal India Ltd besides its own mines.

Pandey said, at present, the company has to spend a whopping Rs 12,000 crore for importing around 11 mt coking coal.

SAIL's requirement of coking coal would go up to 21 mt when its capacity would increase to around 24 mt from the existing 14 mt by next year.

Higher input cost was one of the reasons which has affected the company's bottom-line as SAIL reported 18% dip in net profit at Rs 696 crore for the first quarter ended June, 2012.

Stating that SAIL had got two coal blocks at Jharia coal belt in Jharkhand, Pandey said the company has approached the government for some more coal blocks in Jharia.

"Being a PSU, we have requested the government to allot us a few more coal blocks through government disposition route and we are expecting it," he said.