Coal India will give preference to companies that offer it an opportunity to develop and operate coal mines abroad in retrospect, the company said in its offer for expression of interest.

Coal India Ltd is awaiting expression of interest from corporations for jointly producing coal from 18 of its abandoned underground mines to secure future supplies of the fossil fuel.

A company executive told DNA Money that the joint venture partner doesn’t
necessarily have to be a foreign company. “It can be an Indian company with operations or access to coal fields outside the country.”

The company, however, produces majority of its coal from open cast mining, with underground coal mines contributing to only 11% of the total production in the last fiscal year.

“Thus far, higher emphasis was attached to opencast mines for obvious reasons of faster growth and higher economic returns,” Coal India said, adding, “Now keeping in mind the futuristic needs the current thinking is to put higher thrust in underground mining than ever before.”

With the current proposal, the government seeks to invite private participation to get access to technology and experience in safely digging out coal.

The 18 coal mines on offer have estimated reserves of 1,647 million tonnes of coal.
As per Coal India’s plan, the private sector company interested in jointly mining coal would, upon being selected, form an equal joint venture with the subsidiary of Coal India that owns the coal mine.

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