Coal India (CIL) Chairman and Managing Director S Narsing Rao informed reporters that the mining firm will have to import about 20 million tonne of coal in 2013-14 to meet the 80 per cent of commitment quantities to power producers.
The above import quantity is projected by assuming that the firm would produce 492 million tonne of coal in the next financial year.
According to the new Fuel Supply Agreement (FSAs) signed with power firms, CIL has to meet at least 80 per cent of supplies or face penalties. Any quantity that it is unable to meet from domestic production is to be compensated through imports.
CIL has an inventory of 71 million tonne (mn t) as of now. Next year, it aims to produce 480-482 million tonne of coal and dip into inventories for another 10 million tonne or so. Current year supplies were almost 470 million tonne.
In the current financial year, the company does not have to import coal because it had high inventory to meet requirement of power plants. But next year, when more power plants are likely to be commissioned, it will revive plan to import coal, Rao said.
CIL had anticipated a import of 12-13 million tonne in the current fiscal. Coal India said that if the company is able meet the level of 492 million tonne next year and if power plants do not come up as expected, the need for imports might be even less in next fiscal.