CIL mulls coal import to ensure supply.

NEW DELHI: In a bid to meet the obligations of supplying a minimum assured quantity of coal to power producers under the Presidential directive, Coal India (CIL) may resort to imports, its chairman and managing director designate S Narsing Rao said on Friday.

"We have to see how much we can increase production to meet the commitment. CIL will do the imports if it is inevitable," Rao, who is currently heading state-run Singareni Collieries, said. CIL earlier had expressed inability to import, saying it was not in the business of importing coal.

Rao, who is due to take charge of the company shortly, said the PSU would weigh various options of importing coal that will include direct imports, if required. "Coal India may import directly. At the same time there are public sector undertakings like MMTC which are there for a long time in the business . They have expertise... We should see all options, if that (import) is inevitable..., " Rao said. The government on April 3 issued a Presidential directive to the PSU to sign fuel supply agreements (FSAs) with power producers, assuring them of at least 80% of the committed coal delivery.

Source : timesofindia.indiatimes.com