Displaying items by tag: Coal India

India: Coal India (CIL) is likely to sign a major joint venture agreement with the India Railways to co-develop a number of railway projects to extract coal. CIL would provide the money, while India Railways would provide the labour force creating the infrastructure, including the tracks, sidings and related infrastructure.

The joint venture plan was conceived by Union railway minister Suresh Prabhu, who has been working hard to raise India Railways' share of coal transport and CIL chairman Sutirtha Bhattacharya, who has previous experience of working on similar projects for the Krishnapatnam Rail Co. The deal is expected to be signed shortly. "The terms are being worked out. We will disclose when it is finalised," said Bhattacharya.

CIL has been looking at a comprehensive revenue-based partnership with India Railways in a bid to create mega infrastructure for which about 50 separate projects across the country have already been identified. Of immediate priority would be three specific projects, including a 90km stretch linking Tori-Shivpur-Kathautia connecting the North Karanpura mines in Jharkhand, Jharsuguda-Barpalli-Sardega in Odisha and Bhupdeopur-Raigarh-Mand in Chhattisgarh. CIL is likely to invest US$643m in these three projects.

The joint venture is expected to help CIL double its coal production from the current levels to 1Bnt by 2020.

India: The government has asked Coal India Ltd (CIL) to stay away from the initial rounds of coal block auctions due in January 2015 that are meant for the cement, power and steel industries. The state-run monopoly miner has, however, requested the government to reallocate a few blocks to it, including two that it had lost that were being jointly developed with private firms.

"We are a commercial producer of coal and we do not fit into the category for which the blocks are being auctioned," said a senior CIL official. "CIL will stay away from the first rounds of auctions." However, CIL is likely to participate in bidding when coal blocks are auctioned for commercial mining.

The company has requested that the government return the blocks that it lost following the Supreme Court's order rendering almost all allotments illegal 'because substantial investment has already been made by all parties in these blocks.' CIL had floated majority joint ventures with two private companies to undertake mining projects in those two blocks.