Higher revenue from washed coal likely
Nov 02, 2010
The Statesman, Kolkata
Coal India (CIL), expects an increase in revenue from the sale of washed coal, said Mr Partha Bhattacharya, its chairman.
The world's largest coal producer, CIL, sells coal to consumers under a regulated regime. Coal is currently sold in the market is at huge discount compared to prices prevailing globally. But the sale of washed coal will change this.
While addressing the 35th foundation day programme of CIL, Mr Bhattacharya said, out of its total production of more than 430 million tons of coal, CIL currently washes 13 million tons. This will increase to 300 million tons in the next few years, Mr Bhattacharya said.
The company plans to set up 20 washeries within 2014. Of these, two washeries were set up this year.
As price of 'washed coal' will be significantly more than what is received from sale of different grades of coal under a regulated pricing regime, it is expected to give a major boost to the revenues, added Mr Bhattacharya.
Speaking about the huge demand for the shares of Coal India, Mr Bhattacharya said the IPO was oversubscribed by around 15 times. The way investors reposed their faith in the future of the company tells the whole story, he said.
There has been particularly strong demand from foreign institutional investors, who have put in bids worth nearly $27 billion.
Delivering the JG Kumaramangalam Memorial Lecture ~ Reflections & Random Thoughts ~ Mr MP Narayanan, former chairman of CIL apprehended a gap between demand and supply of coal. The gap can be met by importing coal from various countries and acquiring coal mines abroad, he said.