The Coal Minister, Mr Sriprakash Jaiswal, and the Coal India Chairman, Mr S. Narsing Rao, would address investors in Singapore and Hong Kong between August 1 and 4 in an effort to attract investment and companies to India's coal sector.

“There are many opportunities in the coal sector such as setting up of washeries and contract mining which would be highlighted. We want to bring more expertise and the latest technology to India,” said an official.

Industry watchers feel contract mining is one of the ways to involve foreign companies. Mid-sized companies may be interested in Mine Developer and Operator (MDO) contracts. However, global mining giants such as Rio Tinto and BHP Billiton do not engage in such jobs, they say.

Currently, foreign investment in the coal sector is negligible. "This is because we have a captive policy regime. Only if a foreign investor joins a power project that has been given a captive mine, can it get involved. Such a scenario is rare,” said Mr Dipesh Dipu, Director in Consulting at Deloitte Touche Tohmatsu India.

Coal India would engage private companies for contract mining at a fixed per tonne cost, Mr Narsing Rao said in a recent interview. “We need to get more aggressive on outsourcing. In the next three months, we should be able to finalise the roadmap. We will identify the reserves and assess the annual output. We will determine the extraction percentage,” Mr Rao had said.

He added that on a pre-determined price for every tonne, Coal India would offer the contract for 10 or 15 years, based on market advantage. The life of the equipment would be matched with the life of the contract.

Mr Jaiswal would be joined by the former Secretary and Advisor to Coal Ministry, Mr Alok Perti, and Joint Secretary, Mr A K Bhalla, at the road shows organised by IDFC.

>siddhartha.s@thehindu.co.in

Related Topics