Coal India readies Rs6,000 crore war chest for overseas buys

Coal India has set aside Rs6,000 crore out of its cash reserves to fund any likely acquisition of foreign mines, chairman NC Jha said on Wednesday.

“We have a total cash balance of about Rs43,000 crore, out of which we have set aside that much for overseas buy,” Jha said without confirming whether efforts to acquire any coal mines abroad have been finalised.

Coal India, meanwhile, has received firm commitment from NTPC for lifting 10 million tonne that it plans to import soon at prices lower than global prices.

“We have received price bids till today from overseas suppliers which would be opened tomorrow. There after we will hold roadshows for customers to determine the quantum that we need to import,” Jha told reporters after announcing the financial results of the PSU miner.

Coal India is expected to supply 129 million tonne of coal to NTPC from domestic mines.

Coal India on Wednesday reported a net profit of Rs4,220 crore for the January-March period up from Rs2,626 crore in the October-December period, growth coming mainly from a price hike effected in February.

Sales were up at Rs15,016 crore against Rs12,691 crore in the third quarter.

“Our immediate concern is to reduce the coal stock acceleration at pit-head and increase coal offtake,” Jha said.