Business Daily from THE HINDU group of publications
Saturday, Mar 17, 2007
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Business Daily from THE HINDU group of publications Saturday, Mar 17, 2007 ePaper |
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Coal Corporate - Alliances & Joint Ventures Industry & Economy - Mining & Quarrying Coal India, NTPC join hands for taking up mining projects Badal Sanyal
Plans ahead To form a 50:50 joint venture company for undertaking coal mining projects. The joint venture will initially develop seven virgin coal blocks. It will also examine the possibility of developing coal mines abroad.
Kolkata March 16 Two public sector giants — Coal India Ltd (CIL) and National Thermal Power Corporation (NTPC) — have eventually joined hands to do business that is beneficial to both the organisations. In a bid to achieve the objective, an MoU was signed between the two enterprises in New Delhi. The pact was signed by Mr M. Chandan Roy, Director (Operations), NTPC, and Mr K. Ranganath, Director (Marketing), CIL, in the presence of the Chairmen of the two companies — Mr T. Sankaralingam and Mr Partha S. Bhattacharjee, respectively.
Joint biz group
As proposed in the MoU, a joint business development group consisting of experts from the two companies will shortly be formed to identify areas of business and also to form a 50:50 joint venture company for undertaking coal mining projects. The proposed joint venture will initially develop seven virgin coal blocks, which have already been allotted to NTPC. Of the total blocks in question, with a combined non-coking reserve of about five billion tonnes, three blocks are in the North Karanpura coalfields in Jharkhand, two blocks in the Ib-Valley coalfields in Orissa and in the Brahmani coal fields in Chhattisgarh. Available information suggests that in the proposed joint venture, CIL will be entrusted with the responsibility of developing the identified virgin coal blocks and operating them, while NTPC will have buy-back arrangement for the entire produce. NTPC plans to meet the coal requirement of its new projects adjacent to the mines as well as to meet the incremental coal requirement of its existing thermal power plants, many of which are in expansion mode. Informed sources indicate that NTPC consumed about 105 million tonnes (mt) of coal in 2005-06. Almost the entire quantity, except 2.49 mt of imported coal, was sourced from CIL. The consumption is expected to touch at 108 mt (including two mt of imported coal) in 2006-07, while the requirement in 2007-08 is expected to be about 145 mt. NTPC's coal requirement is poised to rise consistently in the coming years because it will take up a series of thermal power projects in the Eleventh Plan. In addition to developing virgin coal blocks, the proposed joint venture will also examine the possibility of developing coal mines abroad. It is indicated that the proposed joint venture, after meeting NTPC's requirement, will be allowed to sell surplus coal to CIL for distribution to non-NTPC consumers.
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