Cabinet may allow Sail & RINL to tie-up shipping lines

Expected to allow these two companies charter ships to import coal and other raw materials instead of going through 'Transchart'

The government is likely to give more freedom to state-run Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) to tie up their shipping lines.

Officials said the union cabinet is expected to discuss a proposal this week to allow these two companies charter ships to import coal and other raw materials instead of going through ‘Transchart’.

Transchart is the ships chartering wing of the shipping ministry and at present all government departments are required to go through this department.

Few years back, such a facility was extended to government-owned oil refiners. The facility is expected to enable the state-run steel making companies meet their import requirements of coal swiftly and without delay.

India imported around 130 million tonnes of coal in 2012-13 in order to meet the rapidly rising demand of around 630 million tonnes.

While coal imports are allowed under Open General License (OGL) and private companies import coal themselves, the government has now asked state-owned miner Coal India Ltd to meet the supply gap for power companies by importing coal on cost-plus-basis.