CIL needs Rs. 15,600 cr. investment
KOLKATA: Three public sector units (PSUs) Coal India Ltd (CIL), Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) are planning to jointly scout for overseas mining opportunities in metallurgical coal, CIL Chairman, P. S. Bhattacharyya, said.
Participating in an interactive session with the Merchants Chamber of Commerce here on Thursday, he said talks had begun with the other two PSUs in this regard, and currently only 40 per cent of steel sector's metallurgical coal demand was met domestically. He said a special purpose vehicle (SPV) might be floated for this purpose and the countries on the scanner were: Australia, South Africa and Argentina.
On thermal coal, he said CIL would need Rs. 15,600 crore investment to meet the 520 million tonnes production target set for the 11th Plan. He hinted that an increased amount of outsourcing would be needed since this target would need a total investment of Rs. 20,000 crore.
He said policy measures for private sector participation in setting up washeries would soon be put in place by CIL, which was working on this with its parent ministry. Private participation was also necessary for tapping new technology options like underground coal gasification and the CIL chairman said that tax incentives would be necessary for luring private capital to this sector.