Mjunction To Sell Imported Coal.

KOLKATA: mjunction services, a 50:50 joint venture between Tata Steel and Steel Authority of India, has decided to sell imported coal through its online arm, coaljunction. The first online sale of imported coal is expected to start next month, said a senior company executive. mjunction's move comes at a time when Indian companies, particularly in the cement, steel and power sectors, are actively looking to supplement domestic coal supplies with overseas resource support. "There is an opportunity to bring in coal from outside.

This year coal imports for use in domestic market is likely to touch 100 million tonnes. We want to participate in selling imported coal in India and hope it will boost our revenue. We are now in the process of firming up the tie ups with sellers," said managing director Viresh Oberoi .

mjunction, which is looking at import of thermal coal from countries such as Indonesia and South Africa, hopes to bring in the first shipment of 60,000 tonnes in July. coaljunction, is a division of mjunction and was formed for e-auction of coal. It conducts e-sales on behalf of Coal India and its subsidiaries. For Coal India, the country's largest coal producer, this has proved profitableprofits.

However, sale of imported coal will be coaljunction's own offering and follow a model different from existing model of e-sales . "Through coaljunction we want to develop revenue sources and build up capabilities for sale of imported coal. coaljunction has nearly 10,000 registered buyers. Our focus is on small buyers with a requirement of around 5,000 tonnes. We will aggregate the requirement of small buyers, including sponge iron makers and brick kilns, to come up with a reasonable import volume," Mr Oberoi added. India's coal imports are set to rise significantly this year due to increased demand from cement, steel and power industries.

With total demand set to double to 710 million tonnes, India is likely to import nearly 100 million tonnes of coal in 2011-12. Last year imports were 85 million tonnes.

Source : economictimes.indiatimes.com