Tata's proposal

By Lutful Karim Sydney, Australia
7 June 2006, 18:00 PM
There are two main types of coal. They are thermal coal and coking coal.

The thermal coal is used for electricity generation whereas the coking coal is primarily used in steel mill. Coking coal is higher-quality coal because it can withstand more heat, which is necessary in the manufacture of steel. Coking coal may not be found in Bangladesh but it can be imported from abroad to use in the proposed Tata steel mills in Bangladesh. Steel mills of China and Japan use imported coking coal to manufacture steel. If they can run their steel mills profitably using imported coking coal, Tata can also run their proposed steel mill in Bangladesh profitably.

If they insist on using gas they should pay the right price.