The proposed import of coal through long-term off-take
contracts may elude Coal India Ltd (CIL), thanks to its failure to solve the
logistics riddle offering an end-to-end delivery solution to customers.
Sources suggest that despite having evaluated bids from 11
prospective suppliers (such as Rio Tinto, Xstrata, Peabody, Massey Energy and
Sinarmas) having mining assets abroad, the company is far from securing firm
purchase commitment from Indian users without which the board of directors will
not approve any import plan.
As per the original schedule, the coal major was scheduled
to complete the entire procedure and seek board approval to strike MoUs
(memorandum of understanding) with the overseas suppliers in September.
Imports were scheduled to take place from this financial year.
Elaborating the reasons, the source said that while Indian
users demanded delivery of coal at their factory gate (as is done by private
sector importers) CIL has failed to solve the logistics riddle.
The company has already proposed a JV with Shipping
Corporation but is yet to incorporate the same. Even if the shipping logistics
are in place, no solution could be struck on evaluating the coal from ports to
the customer end.
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