* Chairman says to stick to target of 12 mln T in 2013/14
* Seeking to buy coal mines abroad, delegation to visit
By Krishna N Das
NEW DELHI, Oct 24 (Reuters) - Steel Authority of India Ltd
, the country's largest domestic steelmaker, is
sticking to its target of importing 12 million tonnes of
steel-making coal this fiscal year despite a weaker rupee
inflating costs, its chairman told Reuters on Thursday.
The fall in the rupee, which hit record lows in late
August and is down about 11 percent so far this year, has forced
some small steel companies to rethink or delay coal purchases,
importers and brokers say.
Every one rupee fall in the Indian currency compared with
the dollar raises SAIL's costs by 1.5 billion rupees ($24
million) per year, Chairman C.S. Verma said. SAIL spent more
than 135 billion rupees on coal in the last fiscal year.
"I can't remain insulated from the volatility in the rupee,"
Verma said. "But if I have to run my steel company, I'll have to
import. There's no coal available in India of the type we need."
About two-thirds of SAIL's coal requirement comes from
Australia, with the rest coming from the United States, said
Verma, who is also the head of NMDC Ltd, India's
largest iron ore producer.
SAIL, NMDC, Coal India Ltd and power company NTPC
Ltd are part of a joint venture called International
Coal Ventures Private Ltd (ICVL), which has been scouting for
coal mines abroad to secure India's coal needs.
"We're carrying out due diligence of some properties," said
Verma, who is also chairman of ICVL. A delegation of ICVL would
visit Poland to know more about coal reserves there, he added.
Like SAIL, India's third-largest steel company JSW Steel Ltd
depends on imports for coal and has been passing on to
customers the higher imports costs caused by a weak rupee.
"The impact of rupee depreciation will get more than offset
by way of higher realisations as (our) domestic steel prices are
linked to landed cost of imports," JSW Steel Joint Managing
Director Seshagiri Rao told Reuters in an email.
($1 = 61.6000 Indian rupees)
(Editing by James Jukwey)