Fire in the belly

Calcutta, April 26: Coal India (CIL) may team up with National Thermal Power Corporation (NTPC) to enter power generation.

A meeting is slated to take place among the top brass of both the public sector undertakings in Delhi next week to discuss the size of the project.

?I do not rule out a joint venture on power with NTPC,? Coal India chairman Shashi Kumar said. However, he could not reveal the size of the power plant as it is yet to take a concrete shape.

CIL had been planning to enter the power business for quite sometime now. It had also initiated talks with Neyvelli Lignite Corporation. But the talks did not take a concrete shape as problems arose on coal linkages.

Kumar was addressing a seminar on metals, mining and manufacturing organised by the Confederation of Indian Industry.

The coal major will invest Rs 14,000 crore to increase the capacity from 323 million tonnes (2004-05) to 550 million tonnes by the end of the 11th Plan Period. CIL mainly produces coal used in thermal power plants. Nearly 78 per cent of its production goes to the power sector.

CIL hopes to produce 343 million tonnes of coal this financial year. In 2005-06, the total coal production in the country is estimated at 400 million tonnes.

?In our country, the driving force behind development will always be power. And CIL will play a major role in meeting the requirements of the power sector,? Kumar said.

Kumar, however, added that the Centre should take some policy initiatives so that the objections raised by the environment ministry regarding clearances to coal mines could be addressed in a time-bound manner.