Coal India Ltd.

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CIL in talks with Shipping Corp to form JV for coal imports

Date: 13-09-2010

Shipping Corporation of India may form a joint venture with Coal India for coal imports. The JV, which is expected to be formed by the end of this fiscal, would ensure supply logistics and delivery of imported coal from the source of import to consumers.

 

SCI recently reached a joint venture agreement with SAIL for the import of coking coal and is holding discussions with ONGC for offshore activities.

 

The joint venture is likely to be managed by the Shipping Corporation, as it has the domain expertise in the field. In addition, the proposed JV may also be allowed to look for more business opportunities in the area of coal supply logistics and could also own its vessels.

 

Coal India, whose initial public offer (IPO) will hit the capital markets on October 18 this year, plans to import 6 million thermal tonnes of coals in 2010-11, based on firm orders placed by companies like NTPC. While it has a presence in Mozambique, it is learnt to have shortlisted US-based Peabody Energy and 11 others as possible partners for sourcing coal to meet growing domestic demand.crackcrack