The Hindu Business Line : CIL, Tatas to form venture for power from washery rejects

Kolkata, June 21 Coal India Ltd and Tata Power plan to form a 40:60 joint venture to produce 12 MW power by using washery rejects and mine air (containing methane). The Rs 50-crore project will be taken up under clean development mechanism and is projected to earn approximately Rs 6 crore annually through trading of certified emission reduction, popularly known as carbon credit.

“The CIL board has approved the proposal approximately two months back. Tata Power is currently on the lookout for a technology partner, following which we may enter into a joint venture agreement,” the CIL Chairman, Mr Partha S. Bhattacharyya, told Business Line.

“As per the proposed project estimates, the joint venture is expected to generate approximately Rs 6 crore a year through trading of carbon credit,” he said. CIL has roped in Central Institute of Mine and Fuel Research, Dhanbad, as its technology partner in the project.

According to him, though CIL would hold 40 per cent equity in the project — through its wholly-owned subsidiary Bharat Coking Coal Ltd — the revenues from carbon credit would be distributed equally between the joint partners (CIL and Tata Power).

Moonidih is a coking coal mine under Bharat Coking Coal.

According to the project proposal, Rs 35 crore will be funded through loan finance. Of the Rs 15 crore equity, Tata Power will contribute Rs 9 crore and the rest will be contributed by BCCL.

Elaborating on the project, the CIL Chairman said that rejects from the Moonidih washery would be used as the primary feedstock along with mine air containing 0.4-0.5 per cent of methane to generate thermal power.

Looking for Gainful use

Considering that washery rejects are an environmental hazard and are generally used for landfill purposes, globally coal companies are looking for a gainful use of the same through power generation.

On the other hand discharge of methane, a greenhouse gas, in the air is also considered harmful for the environment, due to its impact on the ozone layer.

More Stories on : Alliances & Joint Ventures | Coal | Power | Tata Power Co. Ltd | Environment

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Financial firms cash in on bear market

CAG pulls up SCI for added cost of buying crude carriers

Anheuser-Busch buys up full stake in Crown Beers India

Taiwanese auto component firm plans unit in Nellore

JCB India to set up warehouse, training centre in Pune

Petronet LNG eyes role in Australian gas assets

CIL, Tatas to form venture for power from washery rejects

Kronos ties up with Bharat Forge

Singapore realty developer looking to attract Rs 465-cr investment