Coal India case attracts interest
Customers of state-run miner Coal India are increasing legal pressure on the miner as it grapples with a class action suit filed by its second-largest shareholder, TCI Cyprus Holding.
India’s DNA news agency reported that the Calcutta Electric Supply Corporation (CESC) was considering joining fellow utility Damodar Valley Corporation (DVC) in a suit that targets the miner for more than $US41 million in alleged losses.
In joining the class action, CESC and DVC will support TCI in pursuing all 17 Coal India directors, the Indian federal government and seven mining subsidiaries in what local media has called a first of its kind lawsuit.
TCI is suing for losses suffered due to Coal India not selling coal at market rates to customers like CESC and DVC.
Allocating 18Bt of coal
The Indian government said it had identified 54 tenements holding 18 billion tonnes of coal and had earmarked the properties for allocation.
Coal block allocation procedure was amended this year after a leaked government audit suggested that Coal India squandered more than $US200 billion by allocating coal blocks instead of allowing competitive bidding.
Of the 54 coalfields, 16 will be reserved for government companies, 16 will be reserved for the power sector and 22 will be reserved for companies to be selected through auction.
India’s coal ministry also said it had recently de-allocated 40 coal blocks and issued “show cause” notices to eight coal companies as investigations continue into irregularities in the country’s resource asset distribution process.
The push for more output
Coal India has reportedly submitted a plan to develop 119 mines, which had been allocated by the coal ministry to the mining giant.
According to RTT News, 13 of the tenements will be able to produce coal within one or two years.
The company was ordered to increase output this year and has since set a target to produce 464 million tonnes of coal this fiscal year, 6.5% more than FY2011-12.
A 2016-17 production target of 615Mt is expected to be met through 142 new projects totalling 380Mt of capacity per annum.
