Coal India Limited (CIL) will shortlist companies for revival and development of abandoned coal mines within three months.
“We expect to shortlist the companies for the revival and development of the abandoned coal mines within three months. CIL is in the process of scrutinising the proposals of 12 companies and it aims to enter into joint ventures (JVs) with the shortlisted companies”, a top CIL official told Business Standard.
Asked on the number of JVs that CIL was aiming to form for the development of abandoned coal mines, he replied, “As of now, we haven’t taken a call on the number of JVs that we are going to form. CIL will forge JVs with the companies which meet our eligibility criteria for revival of the abandoned mines.”
Earlier, CIL had received proposals from 12 companies in response to its expressions of interest invited for the revival and development of abandoned mines.
Meanwhile, Central Mine Planning and Design Institute (CMPDI), a subsidiary of CIL was in the process of preparing the Notice Inviting Tender (NIT) for the development of the abandoned coal mines located in the different subsidiaries of CIL. The tendering process for the revival and development of the abandoned coal mines was scheduled to be completed by the end of this fiscal.
Moreover, CIL was in the process of constituting a committee which would work out the modalities for developing the abandoned coal mines. The coal major’s thrust on revival of underground mines was aimed at scaling up coal production to meet the growing requirement of the raw material in the country.
The navratna coal PSU’s coal output was projected at 520 million tonnes per annum by the end of 2011-12. However, the demand for the raw material in the county was set to reach 730 million tonnes by then, thereby creating a deficit of over 200 million tonnes.
Apart from scaling up its coal production, CIL was scouting for acquisition of overseas coal assets in countries like Australia, Canada and Indonesia to meet the domestic coal requirement. CIL was recently awarded exploratory rights for two coal mining blocks in Mozambique with an estimated reserve of around one billion tonnes.