Coal India mulls 15 mln T imports but slow progress seen.

LONDON (Reuters) - Coal India (CIL) , the world's largest coal miner, has been discussing importing up to 15 million tonnes of thermal coal with suppliers, but there are numerous obstacles to overcome before a tender can be issued, supplier sources said.

India has been plagued by power shortages due to a lack of fuel, because it has not been able to produce enough of its own coal or import at target levels.

Coal India, which has a cash balance of billion of dollars, is being pressured to import coal at international prices but supply it at far lower domestic prices. The majority state-owned miner has been unable to supply tonnages contracted with domestic utilities and industries.

CIL wants to pass on the higher costs of international coal to its customers, the sources said.

By the time the company and the government clarify which of them will bear the brunt of higher coal costs and CIL settles contract terms acceptable to international suppliers, which could be many months, other Indian state importing entities are likely to have come to the market for speedy purchases, suppliers and Indian traders said.

Source : moneycontrol.com