MCL enters joint venture for coal mining

Puri, Nov 12 (UNI) Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited today entered into a joint venture agreement with four private companies under the Public Private Participation(PPP) to mine coal from the Utkal-A-Gopalprasad block West project located in the Talcher coalfield in Orissa's Angul district.

The four private companies with whom the MCL entered into an agreement were JSW Steel Limited, JSW Energy Limited, Jindal Stainless and Shyam DRI Power Limited.

Addressing a press conference here MCL Chairman Cum Managing Director S R Upadyay said the company would have 60 per cent share in the Rs 465 crore proposed Mahanadi Jindal Shyam DRI company Limited company.

He said the the joint venture would produce 15 MTPA of mainly 'F' grade coal, 40 per cent of which would be used by the joint venture partners in the private sector for captive consumption in their plants located in Orissa.

The balance 60 per cent would be marketed by the MCL as per the approved coal linkages of government of India. This was the second joint venture of the MCL, the first being the Neyveli Lignite corporation and Hindalco of Aditya Birla group for mining of coal in Talabira block under the Jharsuguda district of Orissa.

Mr.Upadhaya said the prospect of coal industry was bright and by the end of 2020 Orissa would be producing about 40 per cent of the total coal production in the country.

MCL Director (Finance) Balabhadra Mahapatra, who signed the agreement on behalf of company, said modern technology would be used to mine and conserve the coal.

UNI