CIL to scout for overseas coal blocks with SAIL, RINL

Kolkata, Nov 22 (UNI) State-owned Coal India Ltd plans to scout for coal blocks abroad jointly with public sector companies Steel Authority of India Ltd and Rastriya Ispat Nigam Ltd.

CIL officials told UNI yesterday on the sidelines of a Mining seminar that Coal India would also invest Rs 15,600 crore to produce an additional 157 million tonnes of coal by 2011 to meet its annual production target of 520 million tonnes by the end of 11th Plan.

''We are currently holding talks with SAIL and RINL to form a consortium to bid for coal mines in countries like Canada, Australia, South Africa and Argentina,'' the official said.

CIL would bid through its subsidiary Coal Videsh Ltd, which had been created for the purpose. The company would mainly scout for coking coal blocks which is in short supply in India.

Turning to the investment plans, a company official said it would be met through internal accruals.

The company would also go for about 25 per cent outsourcing to bring down its level of investment for producing the additional 157 million tonnes of coal.

CIL would need to create a capacity of 170 million tonnes to produce 157 million tonnes of coal which would require an investment of Rs 20,000 crore. Outsourcing would limit its investment to Rs 15,600 crore, he said.

CIL chairman P S Bhattacharya also recently said the company has fixed a production target of 363 million tonnes for this fiscal.

The country's total projected coal demand by the end of 11th Plan would be 730 million tonne. Rest of the production would come from captive and other sources.

Turning to CIL's financial performance, the company had posted a gross profit of Rs 8,676 crore during 2005-06.

CIL was also trying to tap coal bed methane (CBM), he said, adding public-private participation in this sector should be encouraged.

'' By 2007, we will get a feel of the real picture about CBM,'' the official said, adding there should be tax incentives to encourage CBM production in the country.

Underground coal gassification could also be encouraged and a panel has been formed to identify sites for exploration.

Advocating the need for coal benefication, he said there was enough scope for the private sector to invest in coal washeries.

UNI JYN PP SS0924