Pratik Parija and Debarati Roy, Bloomberg
Mumbai: Coal India Ltd, a state-owned company that controls most of the nation’s supply of the fuel, may boost output 6.8% to 384.5 million tons in the year to March to feed rising demand, Chairman P.S. Bhattacharyya said.
The company, based in Kolkata, is also looking to buy mines overseas in countries including Canada, Indonesia and Australia to boost supply, Bhattacharyya told reporters in New Delhi today.
India’s economy, the fourth-largest in Asia, grew 9.2% in the year to last month, stoking demand for coal to generate power. Tata Power Co., India’s second-biggest utility by sales, agreed on 31 March to pay $1.3 billion for a 30% stake in two coal mining units in Indonesia.
Bhattacharyya said he would recommend to the government that it agrees to sell a 5% stake in the company to the public, potentially raising Rs30 billion, echoing comments from his predecessor and a newspaper report.
Coal India planned to sell a 5% stake, then-Chairman Shashi Kumar said in February 2006. The Hindu Business Line also reported last June that the government planned to sell 5% of Coal India to raise Rs35 billion, without citing anyone.