The Hindu Business Line : Coal India keen on Mining & Allied revival

Kolkata March 22 Close on the heels of Coal India Ltd (CIL) signing a memorandum of understanding (MoU) with National Thermal Power Corporation (NTPC) to set up a 50:50 joint venture company for the development of new coal mining projects to cater to NTPC's existing and future power projects, CIL has evinced interest in reviving the closed Mining and Allied Machinery Corporation (MAMC) at Durgapur in West Bengal.

CIL plans to set up a joint venture with a reputed foreign underground mining equipment and machinery manufacturer. The two objectives are to produce equipment and machinery at lesser cost compared to the imported ones, and also to ensure easy availability of machinery and spares for CIL's underground mines.

State's assurance

CIL is understood to have apprised the West Bengal Chief Minister, Mr Buddhadeb Bhattacherjee, of its plan, and in turn, the later has asked CIL to go ahead with the proposal. The Chief Minister is said to have assured all help to CIL, a Central profit-making PSE headquartered here. Informed CIL sources indicate that although MAMC's existing manufacturing facilities have become nearly junk, it still has huge land and ready infrastructure suitable to begin production within a short time. CIL is reported to have initiated the process of selecting the overseas partner for the joint venture.

Learning of this development, Damodar Valley Corporation (DVC) is said to have approached CIL suggesting that the public utility company is interested in involving itself with the venture because DVC too, was keen to source mining equipment and machinery from the revived company for its existing and future captive underground coal mines.

MAMC, originally a part of the Ranchi-based sick PSU Heavy Engineering Corporation (HEC), once had the capacity to produce machinery and equipment for underground coal mines. Set up nearly three decades ago with the support of Russian technology, MAMC did well in the initial years owing to favourable domestic consumption of underground mining equipment. The situation gradually became worse for MAMC with restricted investment by CIL on modernisation and expansion of its underground mines.

Coal output

Meanwhile, investment priorities of CIL, for the Eleventh Plan (2007-2012) have changed. It has now set a target of increasing underground production from its underground mines from 45 million tonnes per annum (mtpa) to 75 mtpa by 2011-12.