(Updates with analyst comment on costs in fifth paragraph.)
July 14 (Bloomberg) -- Coal India Ltd., the world’s largest producer, plans to invest in its first port terminal to handle imports to help meet increasing demand for the fuel, a company official said.
The company intends to build a terminal in a venture with Visakhapatnam Port Trust in southeast India by 2013 with a capacity to import as much as 6 million metric tons annually, the official said, asking not to be identified, citing company policy. Coal India also intends to form a joint venture with NTPC Ltd., Asia’s second-largest power utility by value, to buy the fuel from overseas, the official said.
Inadequate rail and port facilities may hamper coal imports as demand in India doubles to more than 1 billion tons by 2015, Wood Mackenzie Consultants Ltd. said on July 1. Coal is used to fire more than half of India’s current power generation capacity, according to the country’s electricity regulator.



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