In view of the huge demand for fuel in the near future to run country's power plants, Coal India has identified 126 projects with an estimated capacity of 438.04 million tons for the 12th Plan period entailing an investment of Rs. 2,294cr, Chairman, S. Narsing Rao, Chairman, said adding that four projects, having an estimated capacity of 12.50 million tonne and a proposed investment has already been sanctioned and would contribute about 88 million tonne in the terminal year (2016-17). In order to meet production demand, the company has decided to work under the mine-developer-operator (MDO) mode and the player is taking up seven mines in the first phase and will expand later. Elaborating further he said adding that CIL is likely to import 15 million tonnes of coal for power utilities as part of meeting the fuel supply agreement commitments and has already received interest for 15 million tonnes from private power producers and state-owned entities. Some 55- 60 companies that include Damodar Valley Corporation have shown interest in importing coal, which is likely to be supplied from 2014-15. The company would float tenders to select an agency who will import the coal on its behalf. The process is likely to be completed by the end of this fiscal for which the buyers will have to pay at least 90 per cent of coal value in advance to CIL.
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