The Union Coal Minister, Mr Sriprakash Jaiswal, and the Coal India Chairman, Mr S. Narsing Rao, are expected to meet investors and companies in Singapore and Hong Kong next month as part of efforts to attract much-needed foreign investment into the 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 say 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 plans to engage private companies for contract mining by paying them a fixed amount for every tonne extracted, Mr Narsing Rao had said in a recent interview.
The former Secretary and advisor to the Coal Ministry, Mr Alok Perti, and the Joint Secretary, Mr A.K. Bhalla, will accompany Mr Jaiswal at the road shows organised by IDFC.