CIL may import coal for the first time

In order to meet supply commitments from power sector, state-run miner Coal India (CIL) would source coal from abroad for the first time in 2013-14.

CIL, which produces around 80 percent of the country's coal, has found it difficult to meet the supply commitments from power producers under the fuel supply agreements (FSA) because of stagnant output.

The company came under pressure from the prime minister to improve supplies after the government faced sharp criticism from industry last year.

CIL has so far signed 61 FSAs, totalling 24,300 megawatt of power generation, with state-run and private companies, reports indicate.

According to the FSAs, the company can supply around 5.8 million tonne (mn t) of coal through import. Import volumes could increase if other state and private power producers also sign with CIL for supplies rather than buying imports direct, reports indicate. It may be noted that CIL has reached an agreement with power producers on pricing of imported coal.

The world's biggest coal miner cannot produce enough to meet soaring power demand in Asia's third-largest economy.