Mumbai, June 18: Reliance Natural Resources Ltd (RNRL), an Anil Ambani group company, is planning to acquire equity in existing and greenfield coal mining projects overseas.

The company has already firmed up plans to import coal from Indonesia and South Africa.

In addition, affiliates of the company have bid for eight blocks in Jharkhand, Orissa, Bengal and Maharashtra.

With the economy growing at more than 9 per cent, the company expects big returns from coal business.

According to a study done by a working group of the Planning Commission, the demand for coal is expected to increase to 731 million tonnes in 2011-2012 from 474 million tonnes in 2006-07.

The demand from the power sector alone is expected to rise to 540 million tonnes from 350 million tonnes during the period.

Around 55 per cent of the energy requirement of the country is met by coal. The current reserves in the country are estimated at 248 billion tonnes, of which 93 billion tonnes are in the proven category.

In coal bed methane, the company, in a consortium with Reliance Energy and Geopetrol, won four blocks last year through the competitive bidding route. The consortium had bid for 10 blocks.

The four blocks cover an acreage of 3,251 square kilometres making the RNRL consortium the second largest coal bed methane player in India, RNRL said in its annual report for 2006-07.

On the other hand, group company Reliance Fuel Resources has sought the government’s permission to lay a pipeline from Kakinada to Reliance Energy’s Dadri power project in Uttar Pradesh.

Reliance Fuel is also planning city gas distribution networks in Mumbai, Delhi and the National Capital Region. The NCR includes Noida, Ghaziabad, Gurgaon and Faridabad.

The company submitted an application to the oil ministry in May last year, seeking permission to sell gas in Mumbai and Delhi. A permission for the NCR was sought in August. There are also plans to source and supply fossil fuels, bio-diesel, uranium and hydrogen fuels.

Under the terms of demerger with brother Mukesh, companies promoted by Anil Ambani can enter into joint ventures for coal bed methane and gas business. This will solely be for captive consumption. The agreement also gives the first right of refusal to Mukesh for the surplus gas with companies owned by Anil.

Anil had earlier moved court against Reliance Industries, which is promoted by Mukesh, for not honouring the contract to supply gas from Reliance’s oil and gas block in the Krishna-Godavari basin.

The government had also objected to the low price of gas in the settlement between the brothers.

RNRL, which posted a total income of Rs 25,016 crore and net profit of Rs 29.86 crore for the 15-month period ended March 31, 2007, has supplied over 5 lakh tonnes of coal from Indonesia to Reliance Energy’s plant at Dahanu in Maharashtra.