Industry & Economy
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Coal
Coal India to leverage on `core competence'
Our Bureau
Kolkata
,
Sept. 11
THE state-owned Coal India Ltd (CIL) favours the idea of leveraging its "core competence" in coal business value chain in the international market.
The company hopes such ventures will enable it to develop "transnational" business competence to compete with other MNCs, whose produce is imported into India and also yield higher return on investment for the company.
The Director (technical) of CIL, Mr Lakshman Jha, said with globalisation becoming the order of the day, the company should set up coking coal or high-grade thermal coal mining business overseas to produce coal and export to India by either opening new mines or equity participation in working mines on production sharing participation interests basis.
The entry strategy of CIL, in the short-term with immediate returns, is geared towards establishing joint ventures or equity participation with companies operating metallurgical coal and/or low ash thermal coalmines.
In the medium-term, Mr Jha said CIL would be looking at equity participation with companies in greenfield projects. And in the long-term, the intention would be to acquire/lease a coal block and do mining on stand-alone basis.
In fact, India has minimal reserves of low ash non-coking and coking coal. Thus, the company wishes to undertake production in foreign countries with the principal objective of exporting to India.
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