Coal India Limited (CIL), the world’s largest coal producer, would negotiate the draft notice inviting tender (NIT) with 10 shortlisted companies for revival and development of the 18 abandoned coal mines on July 20 this year.
These abandoned coal mines with a combined reserve of 1.6 billion tonnes are located in the command areas of the three subsidiaries of CIL — Bharat Coking Coal Limited (BCCL), Eastern Coalfields Limited (ECL) and Central Coalfields Limited (CCL).
“The tender document for the development of the abandoned coal mines has been prepared and the draft NIT would be discussed with 10 shortlisted companies on July 20 this year. The final tender document after negotiations with these 10 shortlisted companies would be sent to our subsidiaries which in turn will invite tenders for developing the mines,” a top CIL official told Business Standard.
The subsidiaries of CIL would form a 50:50 joint venture (JV) with the companies who are finally selected for the development of the abandoned mines following the completion of the tendering process. The tendering process for the development of the abandoned mines was scheduled to be completed by the end of the fiscal.
The official, however, said, “We are yet to decide on the number of JV companies we are going to form for the development of the abandoned mines. CIL would forge JVs with the companies which meet our eligibility criteria which will be laid down in the final tenders.”
Last month, the CIL shortlisted 10 companies for developing the abandoned coal mines.
The shortlisted firms are Rio Tinto India Limited, ArcelorMittal, Titan Mining Private Limited, GVK Power and Infrastructure Limited, Sunflag Iron & Steel Limited, S&T Mining Company Limited, Essar Minerals Resources, JSW Steel with Singareni Collieries Company Limited, JSW Steel with US-based Joy Mining and Monnet Ispat & Energy Limited.
Earlier, CIL had received proposals from 12 companies in response to the expressions of interest it had invited for the revival and development of abandoned mines.
The abandoned mines offered for development include Sangramgarh, Seetalpur, Kapasara, Shyampur A, Sripur and Girimint of ECL; Dharmaband, Gaslitand, Industry, Kendwadih, Kustore, Kujama, Victoria and Begunia of BCCL and Hindegir, Associated Karanpur, Khas Karanpura and Pipradih of CCL.
CIL was looking to rope in global firms who would bring their latest technologies for developing the abandoned mines. These mines were water logged and CIL lacked the technology to develop them.
