CIL's nod to MoU with ONGC

Coal India (CIL) has, in principle, approved signing of an MoU with ONGC for a pilot underground coal gasification project, to be undertaken on a joint venture basis with equal partnership, Lok Sabha was informed today.

In a written reply to a query, minister of state for coal and mines, Dasari Narayana Rao said investment details have to be worked out after signing of MoU with ONGC. However, it would be ajoint venture with 50:50 participation.

In reply to a supplementary question, he said according to CIL, extractable reserves of coal gas in its abandoned mines have not been assessed so far.

Rao also said the government was considering a proposal to remove coal from essential commodities list. However, colliery control order, 2000 placed no restriction on trading of coal by private parties.

As part of efforts to reform the sector, the government has constituted an expert committee to draw a roadmap.

In reply to a query on giving autonomy to coal companies to make them competitive, the minister said CIL and its subsidiary companies already have autonomy in operational matters and the government has decided that all powers exercised by CIL relating to procurement of all items, except procurement of explosives, be delegated to its coal producing subsidiaries.

CIL has been directed to delegate powers related to marketing to the non-core sector in case of Mahanadi Coalfields, Western Coalfields and South Eastern Coalfields.