![]() Financial Daily from THE HINDU group of publications Thursday, Jan 27, 2005 |
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Corporate
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Announcements Coal India may import explosives via STC to tackle shortage Badal Sanyal
Kolkata , Jan. 26 IN view of the fact that a shortage of explosives by domestic manufacturers may affect coal production in many coal mines, Coal India Ltd (CIL) is considering approaching the State Trading Corporation for import of such explosives. Informed sources say that CIL, as desired by the Union Ministry of Coal, is also considering debarring certain domestic explosive manufacturers from taking part in future tenders if they do not fulfil their supply commitments as agreed by them during the last explosive purchase agreement, which is to expire soon. Sources in the explosive manufacturing industry argue that the manufacturing costs of explosives have gone up manifold due to reduced availability of ammonium nitrate. Even if it is available, the sources say that the cost the chemical is prohibitive. They argue that it is not possible for them to supply the agreed quantity of explosives unless prices are revised. However, a meeting was recently held between CIL and the Explosives Manufacturers Association of India to take measures to prevent any disruption in the supply of explosives to CIL mines. Even so, available information suggests that there have been instances, mainly in Eastern Coalfields (ECL), Bharat Coking Coal Ltd (BCCL) and Central Coalfields Ltd (CCL), where blasting operations have been held up for want of explosives. It is pointed out that this has resulted in a substantial shortfall in production in these coal companies. It is officially learnt that the supply of "large dia" explosives (used in open cast mines) fell short by 52 per cent in BCCL and 61 per cent in ECL during the current month (till January 21). Similarly, the supply of bulk loading explosives (used in deep open cast mines) was short by 41 per cent in BCCL, 55 per cent in ECL and 60 per cent in CCL.
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