Coal India Ltd., the world’s largest producer of the fuel, plans to form a partnership with the Port of Visakhapatnam on the east coast to increase import capacity as power generation demand rises.
The tie-up will initially allocate 5 million metric tons of port capacity for coal imports, Coal India’s technical director N.C. Jha said in an interview in New Delhi today. The venture will later build a 20 million-ton coal berth, he said.
Demand for coal has outpaced domestic production in India, which aims to provide electricity to every household by 2012. More than half of India’s power generation capacity is coal- fired and Coal India is preparing to bring in additional supplies from overseas as it awaits environmental approval for new mining projects.
Coal India, based in Kolkata, plans to import 6 million tons of coal in the year ending March 31. The miner is in talks with companies, including NTPC Ltd., India’s largest power generation company, Jha said.
“How much we import and when will depend on buyers,” he said. “We are telling our clients to strike a long-term purchase agreement with us. The large volume will help us import coal at lower prices and power companies will benefit.”
Coal India also plans to secure cargo capacity in an agreement with Shipping Corp. of India Ltd., Jha said.
The tie-up will initially allocate 5 million metric tons of port capacity for coal imports, Coal India’s technical director N.C. Jha said in an interview in New Delhi today. The venture will later build a 20 million-ton coal berth, he said.
Demand for coal has outpaced domestic production in India, which aims to provide electricity to every household by 2012. More than half of India’s power generation capacity is coal- fired and Coal India is preparing to bring in additional supplies from overseas as it awaits environmental approval for new mining projects.
Coal India, based in Kolkata, plans to import 6 million tons of coal in the year ending March 31. The miner is in talks with companies, including NTPC Ltd., India’s largest power generation company, Jha said.
“How much we import and when will depend on buyers,” he said. “We are telling our clients to strike a long-term purchase agreement with us. The large volume will help us import coal at lower prices and power companies will benefit.”
Coal India also plans to secure cargo capacity in an agreement with Shipping Corp. of India Ltd., Jha said.