Essel Mining, Lanco Infratech in race to bag coal gasification projects

Pratim Ranjan Bose Kolkata | Updated on November 12, 2017 Published on July 04, 2011

Private sector majors Essel Mining and Lanco Infratech are leading the race to participate with Coal India Ltd in developing two underground coal gasification (UCG) projects in Jharkhand and Maharashtra, according to sources.

Coal India (CIL) is expected to seek the board approval for awarding the projects in August.

The private sector operators will explore project viability, select technology and run a pilot programme before entering the development and production stage in a time-bound manner.

Similar to NELP; CIL has outlined a minimum work programme inclusive of guaranteed investment and exit clauses in the exploratory and pilot phases.

While the coal major has no financial commitment in the proposed projects, it will offer coal blocks as ‘equity' and will also be responsible for getting environmental clearances. The company, however, may enter into joint ventures with the selected private sector operators for creating marketing infrastructure once the project reaches the production stage.

Sources told Business Line that based on bids submitted in April, the Gurgaon-headquartered Lanco Infratech was evaluated as the frontrunner for undertaking the UCG project at Thesgora near Nagpur.

The regionally explored block has a prognostic reserve of 187 million tonnes (mt). Essar Oil, Adani Enterprises, Corporate Ispat Alloys (Nagpur), Aryan Coke Beneficiation (Gurgaon) and Sainik Mining are the other bidders for the block.

Essel mining has been short-listed for the unexplored Kaitha block at Ramgarh near Ranchi — having a prognostic reserve of 166 mt. Other bidders for the project are Essar Oil, Lanco Infratech, Adani Enterprises, Corporate Ispat Alloys (Nagpur), Aryan Coke Beneficiation (Gurgaon), Global UCG (Gurgaon) and Sainik Mining.

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Published on July 04, 2011
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