ET reported that power major NTPC is likely to join the coal logistics joint venture proposed by Coal India and Shipping Corporation of India.

Mr S Hajara CMD of SCI said that "Talks are at an advanced stage with NTPC for the proposed joint venture.”

CIL has said it wants to deliver imported coal at the doorsteps of customers through a SPV in which likeminded companies will also join. Mr NC Jha chairman of CIL said that 4 to 5 proposals have been received for long term offtake contract of imported coal and it will be taken up with the board in the near future. It has already signed an MoU with SCI and invited Indian Railways to join the consortium.

Coal India and SCI are banking on NTPC, a major buyer of imported coal. A firm commitment will help the coal major to finalise import contracts with suppliers. NTPC aims to import 16 million tonnes of coal during the current year to meet its feedstock requirement.

The PSUs have proposed joint venture for the import of 25 million tonnes of coal per annum. The supply contract for acquisitions will also ensure a steady supply of imported coal for the joint venture. CIL said the hindrances for overseas acquisitions have been removed by the Centre, and CIL's sub committee on acquisition will take up proposals shortly.

Meanwhile, CIL has finalised the consultant to carry out a feasibility study, facilitate incorporation of the joint venture company, prepare the joint venture agreement, business model and other responsibilities. Sources said i-maritime consultants, a leading maritime and shipping consultant, has been awarded the contract and CIL officials will sit with them early next week.

(Sourced from ET)