Coal India said that the company has signed a joint venture agreement (JVA) with Bharat Heavy Electricals (BHEL) for undertaking a coal-to-chemicals business.
CIL will hold 51% stake in the joint venture company (JVC) and the remaining 49% stake will be held by BHEL.
The JVC will initially set up a coal to 2000 TPD ammonium nitrate plant using BHELs in-house developed PFBG (pressurized fluidized bed gasification) technology.
Accordingly, BHEL and the JVC shall execute an agreement for coal to syngas island / gasification plant on LSTK (lump sum turnkey) basis, using BHELs PFBG (pressurized fluidized bed gasification) technology after finalization of detailed feasibility report (DFR).
CIL will ensure to offtake of at least 75% of rated annual production capacity of the project, envisaged in the pre-feasibility report (PFR), subject to acceptance of quality and prices on mutually acceptable terms, as agreed after finalization of DFR.
Coal India is a coal mining company engaged in the production and sale of coal. As of 31 December 2023, the Government of India held 66.13% stake in the company.
The companys consolidated net profit jumped 17.80% to Rs 9,093.69 crore on 2.79% increase in revenue from operations to Rs 36,153.97 crore in Q3 FY24 over Q3 FY23.
Shares of Coal India shed 0.28% to currently trade at Rs 432.50 while those of BHEL declined 1.09% to Rs 222.20 on the BSE.
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