NTPC may join Coal Logistics JV of Coal India , Shipping Corporation of India.

KOLKATA: Power major NTPC is likely to join the coal logistics joint venture proposed by Coal India (CIL) and Shipping Corporation of India (SCI).

"Talks are at an advanced stage with NTPC for the proposed joint venture," SCI Chairman and Managing Director S Hajara said here.

Coal India and SCI are banking on NTPC, a major buyer of imported coal. A firm commitment will help the coal major to finalise import contracts with suppliers. NTPC aims to import 16 million tonnes of coal during the current year to meet its feedstock requirement.

The power generating company, however, wants to restrict coal imports to 10% of its total consumption to keep power price in check.

CIL has said it wants to deliver imported coal at the doorsteps of customers through a SPV in which likeminded companies will also join.

It has already signed an MoU with SCI and invited Indian Railways to join the consortium. CIL Chairman NC Jha said 4-5 proposals have been received for long-term offtake contract of imported coal and it will be taken up with the board in the near future.

The PSUs have proposed joint venture for the import of 25 million tonnes of coal per annum. The supply contract for acquisitions will also ensure a steady supply of imported coal for the joint venture. CIL said the hindrances for overseas acquisitions have been removed by the Centre, and CIL's sub-committee on acquisition will take up proposals shortly.

Meanwhile, CIL has finalised the consultant to carry out a feasibility study, facilitate incorporation of the joint venture company, prepare the joint venture agreement, business model and other responsibilities. Sources said i-maritime consultants, a leading maritime and shipping consultant, has been awarded the contract and CIL officials will sit with them early next week.

Source : economictimes.indiatimes.com