Coal India may start import this fiscal

Has got requisition for 5 million tonnes import

In order to meet its obligations under the fuel supply agreements (FSA), Coal India(CIL) may finally start importing in the current fiscal itself as the company has received requisition for import.

“We have got requisition for import of five- six million tonnes for some of the customers.  The customers are from Andhra Pradesh and some private players. I do not know the entire list. We will examine that.” CIL chairman Narsingh Rao said.

Aked whether CIL would start importing in the current fiscal, Rao said, “I cannot comment on this straight away. If the need is, we will import. We are examining. There are already existing contracts  with MMTC, STC. If they are willing to deliver they can.”

The government last year issued a Presidential directive to the CIL to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80 per cent of the committed coal delivery. CIL is likely to resort to imports to meet the commitment in case of shortfall in production. Imports are likely to be effected through third parties such as MMTC and State Trading Corporation of India (STC).

CIL has so far signed 48 FSAs. Commenting on the 13 pending FSAs with NTPC, India’s largest producer of electricity, Rao said, “We are anyway supplying coal to NTPC under MoU. The signing of FSAs, will make it legally binding for us to supply. The ball is in NTPC's court. I think, there is a board meeting of NTPC this month. Let us see what happens.”

Responding to a query on the possibility of a price hike in the context of Prime Minister Manmohan Singh's comment in favour of an increase in coal price, Rao said, “The CIL board is authorised to take a decision on this. There has been no discussion so far.”

However, he refused to comment on whether there was any communication from the central government on price revision issue.