State-run Coal India (CIL), the world’s largest coal miner, today signed a memorandum of understanding (MoU) with the Shipping Corporation of India (SCI), the largest Indian shipping company, to create a joint venture (JV) to provide end-to-end logistics solutions for bringing internationally-produced coal into the country.
“Through this 50:50 JV, we expect to handle 25 million tonnes of coal every year. By 2014-15, the need to imported coal is expected to rise to 200 million tonnes. So, it is vital to supply it to consumers directly, as delivery is a major point of problem now,” said Partha S Bhattacharyya, CIL chairman. The size of the JV and other financial aspects were still being worked out, he added.
Although CIL has been looking at procuring coal from abroad for domestic power producers for sometime, logistics has been a hurdle. The situation should improve through the formation of this JV, which will cover the entire logistics cycle from load port to consuming end.
“Three overseas proposals are at an advanced stage of due diligence. Some longterm offtake deals are also being worked out. Through this JV, we can deliver coal directly to the power plants. Given the thrust on imported coal, this venture will flourish,” Bhattacharyya said.
