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Pratim Ranjan Bose

Kolkata, April 19

Coal India Ltd has invited an expression of interest (EoI) from global mining majors for development of underground coal mines, operation and maintenance in seven blocks in the country. The EoI was issued last week. The short-listed parties will have to undergo a detailed tendering process for the final award.

CIL will fund the development of the project and will enter into long-term coal purchase agreement with the selected parties covering the cost of production and maintenance of the assets.

Of the seven prospective mining assets, three are located in South Eastern Coalfields Ltd and one each in Bharat Coking Coal Ltd, Eastern Coalfields Ltd, Mahanadi Coalfields and Western Coalfields Ltd.

“We have sought EoIs from interested parties within 45 days, ending next month. Following this, we will shortlist the companies for participation in a detailed technical and financial tendering process,” a senior CIL official told Business Line.

All the blocks are reportedly holding very deep coal assets and are considered to be difficult to mine using available underground technology with CIL. The company had already held pre-bid conferences in this regard and has reportedly received encouraging response, especially from Chinese companies.

Meanwhile, the Indian coal major has made substantial progress towards creating the coal beneficiation capacity through private-public participation. CIL is currently having limited coal washing capacity run on pre-world war technology.

“We have assessed the total beneficiation capacity requirement at 97.6 million tonnes. We have also identified sites for setting up washing capacities and the mine linkages. The linkages in turn will determine the technology to be used by the respective beneficiation plant,” the official said.

“We are expecting all our subsidiaries to issue the first lot of tenders, inviting private parties” to set up washeries, and for their running and maintenance by end June, he added.

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