By Pratik Parija
Aug. 27 (Bloomberg) -- Coal India Ltd. may invest as much as $1.5 billion to acquire mines overseas to help overcome a shortage of the fuel as the country plans to almost double power generation capacity by 2012.
The state monopoly is seeking mines in Australia, South Africa, the U.S., Indonesia and Mozambique with an annual capacity of 10 million to 15 million metric tons, Chairman Partha S. Bhattacharyya told reporters in New Delhi today.
Companies including NTPC Ltd., Reliance Power Ltd. and Tata Power Co. plan to boost generation to meet demand in the world’s second fastest-growing major economy. Coal India estimates a shortage of about 228 million tons a year by March 2012.
“Power companies will be the greatest beneficiaries,” said Girish Solanki, an analyst with Angel Broking Ltd. “The perennial coal shortage problem will be alleviated to an extent once they acquire a mine. Also, it is a good time to scout as coal prices have fallen.”
Coal India secured two blocks in Mozambique that may hold a combined 1 billion metric tons of thermal coal, along with some coking coal, Bhattacharyya said in an interview June 4.
Demand for coal is estimated to reach 731 million tons a year by March 2012, J. Goel, chief general manager of sales and marketing at Coal India, said on Feb. 24. The company wants local mining approvals sped up to boost domestic output.
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